Spring Statement declares that NPPF reform will boost economy
Chancellor Rachel Reeves delivered her Spring Statement this week, revealing that the Office for Budget Responsibility (OBR) has forecast that net housing additions will reach a 40-year high under the National Planning Policy Framework reform, hitting 305,000 homes a year by 2029-30.
The Government also announced that annual housebuilding is expected to rise by around 30% by 2029-30, producing an additional 170,000 homes.
However, the Statement also showed that there are now expected to be fewer than 1.3 million cumulative net additions to the UK housing stock by March 2030, falling short of the previous pledge of 1.5 million homes.
Meanwhile, Reeves announced an extra £2bn in grant funding for the development of affordable housing, delivering 18,000 new homes by the end of the Parliament.
And there was also a boost for the construction workforce, with a £600m investment package set to train up to 60,000 more skilled workers.
However, at the annual Home Builders Federation Planning Conference, Chief Executive Officer Neil Jefferson said that much more needed to be done to reduce the challenges faced by the sector.
He said that the Government had made some “progressive policy interventions and some solid decisions for the long term, but there are frustrations that other issues have not been dealt with”, such as first time buyer support, Section 106 appetite, and building safety.
Sensible pricing of available properties means buyers spoilt for choice
Rightmove issued its house price index for March this week, revealing that the average property value rose by 1.1% in the month, reaching £371,870.
And, whilst they will miss the stamp duty deadline, buyers looking to move in the Spring will benefit from the highest property choice at this time of year since 2015, as sellers price sensibly amid competition which has reached a decade high.
Zoopla’s house price index for February holds a similar message, with house price inflation over the year slowing to 1.8% as the supply of homes for sale outpaces the growth in sales agreed.
Calculating the average asking price at £267,500, the property firm predicted that the average UK house price would rise by 2.5% by the end of the year.
Majority of construction students leave the industry following training
Research by the HBF has found that around 100,000 students are enrolled in further education construction courses at any one time, but only 25% gain employment in construction within six months of finishing their course.
Meanwhile, 60% of students leave the industry completely shortly after finishing their training.
The research, entitled A Hard Hat to Fill, also found that 25% of the homebuilding workforce is aged over 50, meaning that the sector is facing an impending retirement cliff edge.
The HBF also revealed that for every 10,000 new homes the industry builds, 30,000 new recruits are needed.
Building Safety Levy delayed to 2026
The Government has announced that it is delaying the introduction of the Building Safety Levy to autumn 2026; a year later than originally intended.
The delay follows recent challenge to the Levy, with over 100 housebuilders signing a letter issued to Rachel Reeves by the HBF earlier this month.
Vistry’s profits slump
Housebuilder Vistry reported on its full year results for the year ending 31 December 2024 this week, revealing a -64% fall in pre-tax profit due to cost errors mainly confined to its Southern division.
The announcement follows three profit warnings issued last year, albeit revenue increased by 7% in 2024 to £4.3bn.
The firm also said that it had undertaken an “extensive review” process across the group.
Meanwhile, Bellway is on course for 20% volume growth in the next two years, as it announced a 12.3% increase in revenue in the half year ending 31 January 2025 to £1.4bn.
The firm also completed 4,577 homes over the period; an almost 12% increase on the prior year.
These trading updates came against a backdrop of a 4% increase in the number of customers who have said they would recommend their builder to a friend.
The annual National New Homes Customer Satisfaction Survey from HBF, NHBC, Premier Guarantee, LABC and Homes for Scotland revealed that 94% of new-build customers would be happy to make a positive recommendation.
Over 50 housebuilders have earned the highest five-star rating; an increase on 38 last year.
Housing View 