New housing is a hotly debated subject in the UK. Despite the recent uptick in building rates, demand continues to outstrip supply and more affordable homes need to be built. The situation has improved over the last few years; the number of new homes started and finished in the UK is at a nine-year high. However, forecasts show that England alone needs to build 50% more homes to keep up with demand, so the issue is far from resolved. The pressure is mounting on the government to find a solution.
156,140 new homes were registered for construction in 2015, the highest it has been in eight years. This was 0.5% higher than the previous year and 45% higher than 2009.
From 2014 to 2015, private sector starts increased by 7%, while Housing Association starts rose by 5%. That means that since the credit crunch in 2008, the UK housing stock has grown by around 5%, which is no small feat.
The E14 postcode area has seen a fair amount of new build property coming online between 2015 and 2016 and beyond. With a new development being launched, it seems, almost every other month, the canny investor should be keeping an eye on the release dates of these sites in relation to their own portfolio. If a landlord, for example, owns a property where the tenancy expires around the same date that 40 brand new properties are due to complete, then that landlord should be mindful of the new competition and perhaps adjust the rental accordingly.
Despite all this building, the issue facing aspiring home-owners is that demand for housing is still far greater than the current supply. When new build properties come on to the market they tend to be at a premium price. However, there are several schemes to help buyers purchase new build homes at discounted prices. One of these is Discounted Sales, a scheme available from some councils that allows you to buy a new home at a reduced rate.
With 71.3% of residents in E14 renting property, potential investors can be optimistic at their chances of finding tenants if they decide to purchase a rental property. Rental demand is high, which means void periods should be minimal.
If you would like to have a chat about new build possibilities, any other property that has taken your fancy, or you would like to sell or let your home, don’t hesitate to get in touch with me. I’d love to hear from you, so please email me.
Are looking at a property in the E or SE postcode area and would like an instant second opinion? Are you just curious about the value of your own home? I have a free to use tool that will give you, in 58 seconds, an upto date sales and rental valuation. Try it HERE.
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