The Land Registry and the DCLG have released some great news about new homes this week. A report by the Redfern Review was also revealed into Home Ownership after an agonising await.
Help to Buy Mortgage Guarantee cases have been advised to be checked with Lenders, as they will have a finalised completion date for the scheme. In October Halifax made it clear that all their applications for Help to Buy Mortgage Guarantee should be with them by 31st December 2016. So please do make sure of any cases you have coming up of the completion date set.
New figures show the government on course for 1 million houses
190,000 homes have been added to the housing stock in England within the last financial year. Which is an increase of 11% from 2014-2015. The Government released these figures to show that 163,940 of these houses were new build homes, which is an increase of 6%.
The governments plan to produce 1 million houses is definitely on track, which has been supported by the Home Builders Federation. The housebuilding industry is responding to the governments policies aimed towards supplying a scheme for new build houses.
The HBF have stated “to achieve the government’s ‘1 million homes in this parliament’ target, output needs to average 200,00 homes a year.” These new figures that have been released show that the recent increase in house building has been developed on. This suggests a further increase will occur to cover the remaining year of the parliament.
Further figures show that from April 2015 to April 2016 the overall housing supply reached 200,000, which was an increase of 10% from the previous year. In addition there has been a 38% increase in new build properties over the past 3 years.
Redfern Review into the Decline of Home Ownership
Pete Redfern, chief executive of Taylor Wimpey has stated that the younger generation are in the frontline of decline in England’s home ownership, in his latest independent report. Although 80% of the English populations home ownership remain the tenure of choice, it is the younger generation that sees the largest decrease. The ownership levels have dropped more than 20% over the past 12 years, which have been highlighted in the latest review.
With a 6.2% decrease in home ownership there are multiple reasons why this has occurred with a stronger look at the younger generation. Credit constraints have been a lot stricter for first time buyers, which doesn't help with the rising house prices. The report suggests long-term strategies which would hopefully resolve the issues in the decline of home ownership. An independent Housing Commission is proposed to work alongside the Infrastructure Commission. Although there would be a rise on home supply, the actual rate of home ownership would vary due to the rented sector. But all in all, as new homes increase this would provide a wider range of options.
Pete Redfern explains “the detailed analytical work of the Review reveals the challenges that young people face in buying their first home and highlights the impact on them of long-term falls in relative incomes and ability to borrow.” A clearer focus on supporting today’s younger generation is advised in order to create a long-term housing strategy for the future.
Government launches ‘capacity fund’
A £18m fund has been introduced by the housing minister, Gavin Barwell, to hopefully fast forward the housebuilding process on large sites.
Planning issues have been addressed and councils are now allowed to bid for a share in the Government’s ‘capacity fund’. Larger sites of 1,500 units or more will be addressed which will in time see an increase of up to 800,000 new homes and infrastructures across England. 6 more Housing Zones have been issued which is set to deliver almost 10,000 new homes on brownfield land. The Governments new ‘capacity fund’ will see developments throughout the new year, on previously developed land and public sector land.