New analysis from Rightmove reveals that the number of new build housing developments coming to market is at its lowest level since January 2017, despite the government’s target to build 1.5 million homes over the course of this parliament.
The analysis tracked the number of housing developments being listed on the property portal for sale for over 10 years, excluding retirement developments.
Rightmove is calling on the government to support developers in the autumn budget if there is to be a chance of realising its ambition. Proposals from the property portal include removal of stamp duty for first-time buyers across both new build and resale properties, more investment for affordable housing provision, and targeted demand-side support measures for first-time buyers.
“Not since January 2017 have there been fewer new build developments coming to the market for sale,” Rightmove said. “There is a chronic shortage of having the right homes in the right places, at affordable price points, emphasising the need to build more.”
The data illustrates how the government is not on track to meet its own target of building 1.5 million homes over the course of this parliament, Rightmove said.
Removing stamp duty for first-time buyers across both new build and resale properties would create greater affordability for those at the start of the home-owning journey across the whole property market, the property portal added, while greater investment towards affordable housing provision would give developers more certainty as well as helping to provide affordable homes.
“Viability is a huge challenge for developers,” Rightmove said. “Building costs, development obligations such as affordable housing and local infrastructure, higher interest rates and many more factors need to be accounted for which has become more challenging.”
Steve Mariner, group sales and marketing director at Barratt Redrow, said: “Government has made good progress reforming the planning system, helping unlock more land for development. However, increasing regulatory costs are holding new homes back, while low customer confidence, higher borrowing costs and wider economic uncertainty are all making it harder for first-time buyers to get onto the housing ladder.
“A new scheme to support first-time buyers, with developers contributing alongside government, would help people achieve their dream of homeownership, get the market moving and see more homes built and more economic growth. For the first time in decades there is no government support to help people in England buy their first home, right when it’s needed most.”
Alex Slater, Rightmove’s director of new homes, added: “First-time buyers underpin the whole housing market, but affordability and getting that first foot on the ladder is becoming more difficult. We need a set of reforms that go further, faster and work together, from stamp duty changes to more investment in affordable housing, to give this group a better chance of getting onto the ladder and keeping the market moving.”
