Housing crisis deepens as new build developments drop

Despite the government’s pledge to deliver 1.5 million homes, the number of new-build housing developments coming to market is at its lowest level since January 2017.

Findings by Rightmove reveal that not enough affordable homes are being built, while high mortgage rates are adding to the challenges facing buyers and developers.

The property platform is calling on the government to support housing developers in the Autumn Budget.

Increasing regulatory costs

One of the UK’s largest residential property developers and housebuilders, Barratt Redrow, warns additional regulations and low consumer confidence are holding back the housing market.

Steve Mariner, group sales and marketing director at Barratt Redrow, says: “The government has made good progress reforming the planning system, helping unlock more land for development.

“However, increasing regulatory costs are holding new homes back, while low customer confidence, higher borrowing costs and wider economic uncertainty are all making it harder for first-time buyers to get onto the housing ladder.

“A new scheme to support first-time buyers, with developers contributing alongside government, would help people achieve their dream of homeownership, get the market moving and see more homes built and more economic growth. For the first time in decades there is no government support to help people in England buy their first home, right when it’s needed most.”

Colleen Babcock, Rightmove’s property expert added: “Despite the historically high number of available homes for sale, there is still a long-term shortage of affordable homes in the right place. We need more homes to support people at every stage of the moving journey, from first-time buyers to downsizers.”

Remove stamp duty for first-time buyers

Rightmove is calling on the government to remove stamp duty for first-time buyers across both new-build and resale properties.

The property platform is also urging the government to provide greater support for affordable housing by giving developers more certainty and helping deliver much-needed affordable homes.

Rightmove says viability remains a major challenge for developers, with rising building costs, development obligations such as affordable housing and local infrastructure contributions, higher interest rates and other pressures making projects increasingly difficult to deliver.

The platform is also calling for careful consideration of targeted demand-side support measures to help first-time buyers get onto the housing ladder.