X
X
Where did you hear about us?
The monthly magazine providing news analysis and professional research for the discerning private investor/landlord

UK housing targets cannot be achieved warn builders

Only 6% of developers believe hitting a target of delivering 200,000 new homes every year is achievable, despite many expecting an upswing in construction activity, according to an industry poll.

The Building Momentum report from Knight Frank shows that the majority of builders expect new home starts to increase by at least 10% over the coming year, with almost half predicting rises of up to 25%.

However, most believe this will not be enough to plug the housing gap the country faces. Around one in three builders (30%) said that 180,000 new homes a year would be the maximum that could be feasibly delivered on a regular basis.

The survey also highlighted the building industry’s reliance on the Government’s Help to Buy scheme. Three-quarters of respondents said that the extension of the scheme will boost development between now and 2020.

Grainne Gilmore, head of UK research at Knight Frank, said: “The question of whether it is feasible for house-builders to plug the housing hole left by the relative lack of Government investment remains a primary concern. There is no doubt that developers have stepped up activity since the zenith of the financial crisis - official data shows completions in England rose 4.5% over the last year - but this still leaves development some way off the levels needed to meet demand across the UK.”

If you want to read more news subscribe

subscribe