There is little doubt that improving the housing supply is a key component in resolving the challenges faced by the thousands of people trying to purchase the home of their dreams. Every region of the country now has an average first-time buyer age of over 30, and more people are staying with their parents longer because they cannot afford to move up the property ladder or even afford rising rents. Some credit card processing companies offer additional features such as recurring billing and virtual terminals for phone and mail orders.
But when dealing experts and number one estate agents in Buckingham you can easily find the home of your dreams. Simply put, the number of homes being created is insufficient to meet demand. Let’s examine the causes of the housing scarcity in the UK as well as some potential solutions.
As the UK continues to face a housing shortage, a new solution has emerged: new builds. New builds provide a way to increase the amount of housing available while also addressing the need for more affordable housing in the UK. However, there are some concerns about whether or not new builds can be effective without government support.
What Is A New Build?
A new build is a home that is newly constructed, as opposed to an older building that has been renovated or refurbished. The term “new build” can refer to both commercial and residential buildings.
The benefits of new builds:
New builds are often touted as having many benefits over older properties because they are often made from more sustainable materials and better designed with modern technologies in mind. They may also be less expensive than older properties because they don’t incur maintenance costs associated with their age (such as replacing windows or appliances).
Additionally, new build homes tend to have their own identity rather than being part of an existing neighborhood—a benefit if you’re looking for something that isn’t cookie-cutter suburban living but still have access to amenities typically found in those neighborhoods like shopping centers and parks (which are usually lacking in rural areas).
What is the issue?
The UK is currently experiencing a perfect storm. With only over 42% of evaluated homes in England presently receiving an Energy Performance Certificate (EPC) rating of “C” or above, we have some of the lowest quality dwellings in all of Europe. The COVID-related consequences on labour supply and material shortages are still having an impact on the construction industry.
The government recently announced the end of the Help-to-Buy programme, which is expected to cause new home starts to go back to their lowest level since 2012. To observe capacity difficulties in the planning system. Therefore, when it was revealed this month that the government failed its goal of building 300,000 new homes by 40% last year with only 181,810 units completed.
There is a need for continued government support to encourage home ownership and house building throughout the UK because a lack of housing supply is one of the main causes of house price inflation and declining affordability. The present housing plans are estimated to generate £14.2 billion in economic activity and roughly 260,000 new employment. A national housing project has genuine advantages and can positively affect economic growth.
Action required now
In order to remove the obstacles impeding the construction of more homes, which are present all across the nation, there must be immediate and effective action. The biggest current barrier to greater home construction may be the lack of clarity in the planning process, and the government should give top attention to addressing the skills gap in both construction and planning. Going further and more quickly to ensure that all new houses are constructed net-zero ready, as well as supporting the expansion of SMEs and contemporary construction techniques, perhaps through tax incentives for the least carbon intensive production models, are additional things that should be considered.
The sector must also acknowledge that Help to Buy, a programme that boosted home construction and opened the door to many first-time buyers, is about to come to an end. The government must ensure that there is no void left after its exit and have a plan in place for the challenges that lie ahead.
The average property price has increased by 63% since Help to Buy was implemented, yet the average earnings has only increased by 16%. The affordability barrier is still too high for many tenants. The government needs to move more quickly with its plans to encourage green finance. This should prioritise implementing reforms to EPC ratings to improve the data’s robustness and dependability as well as finalising legislation on minimum EPC rating standards to enable builders and households to plan ahead. It may also be advantageous to create a national database of household energy use, which will serve as a better measure of emissions than energy efficiency.
Finally, it’s crucial to make sure that home builders construct the proper sized homes for an ageing population. In the UK, there are currently over three million people who are 65 or older who desire to downsize but are unable to. The housing market is currently experiencing a bottleneck caused by a dearth of suitable-sized, energy-efficient dwellings. This problem can and ought to be fixed.