House-Building Figures Continue to Rise but Still Below Target
The latest official government house-building figures show that over the last year the number of new properties being built has risen by 6%. However, this is still under the target of 220,000 new homes which are necessary to meet the demand for properties in the UK.
In the year to this June, 139,030 properties, including those with a glass balcony, were completed, according to information released by the Department of Local Government and Communities. The number of new homes that are finished annually has been steadily rising in the past two years.
The data indicates that over 144,280 properties started the construction phase in the 12 months to June 2016, but this is still below the target of 220,000 homes, which is the level required to prevent a further housing crisis.
These figures show that the industry is clearly going in the right direction but that more is necessary to ensure this continues and the number of new starts rises year on year.
The government has already announced an increased investment in the construction industry so that more families can benefit from high-quality houses, such as detached properties with a glass balcony. This includes an investment of £8 billion that will be used to build 400,000 properties which will be available to rent and buy.
More Than Just Financial Support
More government support is needed to push forward the house-building sector, and this is increasingly focussing on the smaller and medium-sized developers rather than the leading companies. The Home Building Fund, which is worth £5 billion, is a beneficial approach, but the lack of finance is not always the issue for these developers.
The planning system has become increasingly complex and onerous over the past few years, and more needs to be done to open up land for development.
One of the areas that will help push the house-building sector forwards will be the new