Number of new homes in England could drop to half of official 300,000 yearly ... trends now
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The number of new homes being built in England could plunge to around half the government's target without urgent action, a new study warned today.
Researchers predict that the number of newbuilds will drop from an annual average of about 210,000 over the last five years to 160,000 this year due to higher borrowing costs.
Savills estimates completion rates will stay low until at least 2030 without a change in policy.
Both the current government and the Labour opposite have vowed to build 300,000 homes a year as demand continues to outstrip supply and younger generations struggle to get on the housing ladder.
Emily William, director of Savills residential research, attributed the decline in homebuilding on the planning system, higher building costs and weaker sales due to buyers struggling with elevated mortgage rates.
Researchers predict that the number of newbuilds will drop from an annual average of about 210,000 over the last five years to 160,000 this year due to higher borrowing costs
There were 212,570 new build completions in the year to March 2023, but Savills estimates this will fall to 201,900 in the year to March 2024, and then to 160,000 over the coming year, according to the Financial Times.
The Home Builders Federation called on ministers to provide more help to buyers.
'The lack of affordable mortgage availability is suppressing demand,' it said, adding that politicians' 'failure' to address planning and environmental regulation was making it
