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Will The UK Meet House Building Targets?
Evening All,
Quick note from us (Safe Fence) on our view on the construction industry and what we are seeing in terms of demand for construction site hoarding and security fencing for the coming year. Would love to hear your views & thoughts on the below:
Will The UK Meet House Building Targets?
Following on from the general election, the Government set an ambitious pledge to build one million homes in England by 2020. Roughly, this would mean that 200,000 homes would need to be built every year, which represents the highest levels of house building since 1989. But can the UK realistically build enough houses to keep up with demand?
Causes of a housing shortage in the UK
· The planning system and local opposition to building were two of the main reasons cited. The Home Builders Federation says that while things have improved recently the planning system is "still far too slow, bureaucratic and expensive".
· Growing lack of skills & materials.
· Fewer small – medium sized house builders.
· Land banking
On a quarterly basis, house-building starts in England were estimated at 35,530 (seasonally adjusted) in the first quarter of 2016, a 3 per cent decrease compared to the previous 3 months and 9 per cent decrease on a year earlier. So we certainly don’t seem to have begun making much headway towards reaching our target. Even though starts are now 107 per cent above the trough in the March quarter 2009 but 27 per cent below the March quarter 2007 peak.
A decade ago, the Barker Review of Housing Supply noted that about 250,000 homes needed to be built every year to prevent spiraling house prices and a shortage of affordable homes. As many house builders are now aware there is a growing impetus to create affordable homes, however the demands from local councils on house builders to include affordable housing within their latest developments is discouraging many of them from undertaking the work, only further exacerbating the problem.
Having said this there does appear to be a renewed optimism surrounding house building in 2017. The government appears to be supporting of the house building sector, keen to promote growth in the UK following brexit. House-builders provide the perfect target to support growth in the UK alongside challenging social issues.
It is notable that we have seen record demand for construction site hoarding in November and December of this year, a time in which typically builders would be wrapping up projects for the winter not starting new ones. We have also seen the development of previous sites that were part of land banking schemes being developed on which makes us optimistic that 2017 will be a record breaking year for house building over the last decade.
Given the UK’s track records of missing house-building targets we highly doubt that the UK will suddenly begin to meet them. Having said this we are optimistic that with a favorable government and excess demand there will be further growth in UK house building in 2017, making up a core part of UK economic growth.
Please leave your thoughts and comments!
Quick note from us (Safe Fence) on our view on the construction industry and what we are seeing in terms of demand for construction site hoarding and security fencing for the coming year. Would love to hear your views & thoughts on the below:
Will The UK Meet House Building Targets?
Following on from the general election, the Government set an ambitious pledge to build one million homes in England by 2020. Roughly, this would mean that 200,000 homes would need to be built every year, which represents the highest levels of house building since 1989. But can the UK realistically build enough houses to keep up with demand?
Causes of a housing shortage in the UK
· The planning system and local opposition to building were two of the main reasons cited. The Home Builders Federation says that while things have improved recently the planning system is "still far too slow, bureaucratic and expensive".
· Growing lack of skills & materials.
· Fewer small – medium sized house builders.
· Land banking
On a quarterly basis, house-building starts in England were estimated at 35,530 (seasonally adjusted) in the first quarter of 2016, a 3 per cent decrease compared to the previous 3 months and 9 per cent decrease on a year earlier. So we certainly don’t seem to have begun making much headway towards reaching our target. Even though starts are now 107 per cent above the trough in the March quarter 2009 but 27 per cent below the March quarter 2007 peak.
A decade ago, the Barker Review of Housing Supply noted that about 250,000 homes needed to be built every year to prevent spiraling house prices and a shortage of affordable homes. As many house builders are now aware there is a growing impetus to create affordable homes, however the demands from local councils on house builders to include affordable housing within their latest developments is discouraging many of them from undertaking the work, only further exacerbating the problem.
Having said this there does appear to be a renewed optimism surrounding house building in 2017. The government appears to be supporting of the house building sector, keen to promote growth in the UK following brexit. House-builders provide the perfect target to support growth in the UK alongside challenging social issues.
It is notable that we have seen record demand for construction site hoarding in November and December of this year, a time in which typically builders would be wrapping up projects for the winter not starting new ones. We have also seen the development of previous sites that were part of land banking schemes being developed on which makes us optimistic that 2017 will be a record breaking year for house building over the last decade.
Given the UK’s track records of missing house-building targets we highly doubt that the UK will suddenly begin to meet them. Having said this we are optimistic that with a favorable government and excess demand there will be further growth in UK house building in 2017, making up a core part of UK economic growth.
Please leave your thoughts and comments!
....... asking permission to land
........ that about sums up the chances
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