Latest house-building figures show starts on new homes in 2014 totalled 137,010 ” 10% higher than in 2013.
The number of starts in 2014 was the highest annual total since 2007. The total was 36% on 2012 and 59% on the trough in 2009.
However, completion figures, which always lag behind starts, are still only at 118,760 for the year, well below the 230,000 homes a year that government projections indicate are needed.
The statistics suggest that the house-building recovery is broadly spread:
- In Croydon starts increased by 251% from 593 in 2013 to 2,084 last year
- In Cornwall starts increased by 58% from 2,465 in 2013 to 3,892 last year
- In Leeds starts increased by 84% from 1,349 in 2013 to 2,480 last year
- In Bradford starts increased by 171% from 523 in 2013 to 1,417 last year
- In Selby starts increased by 296% from 279 in 2013 to 1,106 last year.
The growth in activity accelerated following the launch of Help to Buy equity loan scheme in April 2013. The more positive market conditions resulted in almost 40,000 more homes being started in 2014 than in the last full year before Help to Buy was introduced.
While Help to Buy is helping to drive demand for new homes, constraints still remain, according to the Home Builders Federation (HBF) – not least with the planning process.
HBF executive chairman Stewart Baseley said: “Improving consumer confidence and the Help to Buy scheme have increased demand for new home and the industry has responded. We estimate that there are now over 100,000 more people employed as a result of the increase in house building, providing the country with an economic boost as well as much needed housing. However, we are still way short of building the number of new homes the country needs. As we approach an election, all parties need to focus on how we can increase housing supply still further.”
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