A decrease in the number of home starts and completions has been blamed on the ongoing impact of the economic downturn. From 1st April to 30th September 2023 Homes England delivered 11,530 new houses starting on site and 11,297 new homes completed down from 14,812 housing starts on site and 12,118 housing completions in 2022.
But Homes England point to a small increase in the proportion of affordable housing being built as evidence of its continued commitment to create opportunities for all to get on the housing ladder; a statistic it puts down to “the living cost and mortgage rate increases associated with an economic downturn (which) will typically result in a fall in market housing demand, (and) an increase in affordable housing demand.”
Of the affordable homes started between April and September 2023
- 1,058 were for Affordable Rent, a decrease of 51% on this period last year
- 1,182 were for Intermediate Affordable Housing Schemes, including Shared Ownership and Rent to Buy, a decrease of 32%
- 722 were for Social Rent, a decrease of 14%
A similar number of affordable homes were completed in this period (7831) compared with 2022 (7905) though given the fall in completions, the proportion is higher (69% versus 64% respectively). As well as the economic downturn, the overall decrease in affordable completions is due to the Shared Ownership and Affordable Homes Programme 2016 -21 no longer accepting new allocations, with all new allocations going through the Affordable Homes Programme 2021 – 26.
Of the affordable homes completed in this period:
- 3,092 were for Affordable Rent, a decrease of 16% from the same period last year
- 3,084 were for Intermediate Affordable Housing Schemes, an increase of 1%
- 1,174 were for Social Rent, an increase of 4%
- The remaining 481 were for First Homes, an increase of 1,103% on 40 First Homes completed in the same period last year.
Peter Denton, Chief Executive at Homes England, said:
“The current economic downturn, with escalating interest rates, abnormal inflation, particularly in building material costs, and the growing cost of living crisis, have all had an impact on housing delivery.
“As the government’s housing and regeneration agency, we have acted as quickly as we can, working with the Department for Levelling Up, Housing and Communities to introduce flexibilities and ease the strain on our partners. We know that these pressures are likely to continue, and we shall continue to work with our partners and central government to support the sector to keep building.
“Times are tough and I’d urge existing and potential partners from the building industry, home providers, developers, investors and local authorities to engage with the Homes England team. We are here to help unlock solutions to problems and pave the way for more homes and regenerated places where people want to live and thrive.”
