HBF, NHF and Savills call for Government measures
Real estate services provider Savills has published a report highlighting that, without intervention, the Government will miss its 1.5 million homes target by almost 500,000 homes.
The report, entitled Delivering 300,000 homes per year in England, has led the Home Builders Federation (HBF) and National Housing Federation (NHF) to join Savills in calling for measures to support affordable housing and first-time buyers.
Current research has found that there will likely be a shortfall of between 40,000 and 95,000 homes per year if the housing sector continues as it is.
Among a “more targeted version” of Help to Buy, the HBF, NHF and Savills are also calling for a substantial increase in grant funding for affordable housing.
More and more households are dealing with the consequences of the housing crisis, so tackling the undersupply of housing in this country cannot wait a moment longer.
Neil Jefferson, CEO, Home Builders Federation
The findings from this report are clear. An immediate and substantial boost in investment and funding for new affordable homes, particularly those for social rent, is the best way for the government to meet its housing targets and its ambition to build a generation of new social homes.
Kate Henderson, CEO, National Housing Federation
House prices rise for third straight month
The latest house price index from the Halifax has found that house prices increased by 0.3% in September, and 4.7% over the year – the strongest rate since November 2022.
Valuing the average property at £293,399, the mortgage lender has found that the average amount paid by first-time buyers is now around £1,000 less than two years ago.
Northern Ireland continues to record the strongest property price growth of any nation or region in the UK, rising by 9.7% on an annual basis in September. Wales saw growth of 4.4%, with Scotland recording annual growth of 2.1%.
London continues to have the most expensive property prices in the UK, now averaging £539,238, up +2.6% compared to last year. This is still some way below the capital’s peak property price of £552,592 set in August 2022.
New work drives output growth
Latest estimates from the Office for National Statistics has revealed a return to growth for construction output in August.
Driven by a 3.4% increase in housing new work, the overall construction output rose by 0.4% in the month after falling by -0.4% in the previous month.
Over the three months to August 2024 construction output is estimated to have grown by 1.0%.
Vistry sounds profit warning
Volume builder Vistry has revealed that build cost increases across developments in its South division are set to impact its profit for the year by around -18%.
In a trading statement this week, the firm said that incorrect cost projections have been understated by around 10% of total build cost, affecting FY24 profit by around £80m.
However, despite adjusting profit before tax this year down to £350m, the group still expects to complete more than 18,000 new homes in 2024.
Housing View 