Contractors urged to “hire now”
Latest labour market data from the Office for National Statistics has revealed that the supply of construction labour is getting tighter.
Construction job vacancies grew by 14.9% in the year, whilst in the wider general economy vacancies fell by -14.4%. Construction vacancies are now 44% higher than pre-pandemic levels.
Meanwhile, analysis by Savills and the British Property Federation has found that the number of homes being constructed in the Build to Rent sector has contracted by -20% over the year.
However, the number of completions over the 12-month period increased by almost a quarter, with the total number of homes reaching over 120,000.
The number of Build to Rent homes currently complete, under construction or in various stages of planning is 273,700, with the sector growing 5% year-on-year.
Government announces £68m brownfield funding
Labour has announced £68m of funding under the new Brownfield Land Release Fund, allowing over 50 councils to unlock thousands of new homes.
The funding would go directly to local authorities to enable them to release brownfield sites for new developments, and pave the way for around 5,200 homes.
I said this government is on the side of the builders, not the blockers. And I meant it. This funding for councils will see disused sites and industrial wastelands transformed into thousands of new homes in places that people want to live and work.
Keir Starmer, Prime Minister
House prices rise in August
The latest house price index from the Office for National Statistics has revealed that the average property value in the UK rose by 2.8% over the year, and 1.5% in the month.
A typical UK home now costs £293,000, which is £8,000 higher than 12 months ago.
Average house prices in the 12 months to August 2024 increased in England to £310,000 (2.3%), increased in Wales to £223,000 (3.5%) and increased in Scotland to £200,000 (5.4%). The average house price increased in the year to Q2 (Apr to Jun) 2024 to £185,000 in Northern Ireland (6.4%).
Bellway profit drops ahead of projected output increase
Bellway has seen profit, revenue and completions fall in 2022/23, but is positioned to achieve a “material increase” in output in its 2025 financial year, according to a trading statement released this week.
During the financial year ending 31 July 2024, the developer’s pre-tax profit fell -57.5% to £226.1m when compared to financial year 2023, with revenue at £2.38bn (-30.1%) and completions down from 10,945 in 2023 to 7,654.
However, Bellway said that it would be set to deliver at least 8,500 homes in the current financial year to 31 July 2025.
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