Private housebuilders are building the highest number of homes for many years. Private housebuilding is back within 10% of the UK long term run rate, according to the latest government statistics released in August.
The credit crunch had a catastrophic impact on private housebuilders. The year 2007 had been a terrific year for builders. But as fear spread and the money markets struggled, the number of new private homes started near halved: from nearly 160,000 to just over 80,000. Builders were quick to put sites on hold. Building confidence collapsed like a soufflé.
The latest official figures show a steady improvement. They suggest that 2015 and 2016 will see a continued housebuilding rise above the UK long term building run rate. The building industry has shown before that it can respond quickly and has capacity to accelerate housebuilding. As we move forward, there will be a need to increase housebuilding significantly above the UK’s average run rate in order to build the homes we need.
At the Housing & Finance Institute (the HFi) we work with all market participants: house builders, housing manufacturers, housing associations, housing asset managers, councils, financiers and investors. So do get in touch and join up if you have capacity and interest to increase housing supply and deliver the homes that are needed. Join the HFi here.