Reports paint bleak picture of new housing supply
Summary
Reports from Savills and the Home Builders Federation indicate that new housing supply in England remains subdued, with completions broadly flat and planning approvals for future delivery falling short of government targets. The article highlights weaker demand, rising costs, and concerns that policy and tax pressures, including the forthcoming Building Safety Levy, are affecting site viability and developer confidence.
Why it matters
For residential property surveyors, persistent weakness in new supply affects market conditions, comparables, and valuation assumptions, particularly in the new-build sector. It also signals potential changes in development viability and pipeline risk that may influence due diligence on sites and schemes.
Key points
- Home completions remain broadly flat and below policy ambitions.
- Planning permissions for new homes are running well below target levels.
- Smaller housebuilders are under greater pressure from weak demand and limited financial capacity.
- Rising delivery costs and affordability constraints are reducing site viability.
- The Building Safety Levy is expected to add further pressure on new-home development.
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