House building plans continue to grow
Recent news has further highlighted positive progression within the UK housing sector with research confirming that the number of new-builds has risen by 11% within a year, making it the highest annual total in 8 years.
There is also further progression projected for the future of the sector after Philip Hammond confirmed his commitment to strengthening the UK’s housing market by pledging to provide &2.3bn to a housing infrastructure plan that will help support the construction of 100,000 new homes in areas of high need. A further pledge to provide &1.4bn to help build new and affordable homes throughout Britain has also been proposed.
In his first Autumn Statement, Mr Hammond also emphasised the need to ‘reflect’ on the rules and regulations for affordable housing, adding that the much needed cash injection should ‘help to diversify the housing mix’ and create homes that people ‘want and need’.
With demand for housing currently outweighing supply, the chancellor’s plan should help to bolster the housing market in a number of ways. Primarily, it will provide much needed funding to developers, and with new housing developments helping to drive down house prices and rents, this outcome will be welcomed by many - especially those seeking to get on the property ladder in the near future.
The proposed reassessment of the rules and regulations that property developers currently face should also make it easier to develop affordable housing in the future, therefore encouraging existing and prospective developers to invest within the market.
It is expected that there will also be a number of other beneficial consequences from the investments, with the chancellor emphasising that housing providers will be now be incentivised to support and offer a wide range of products, including: affordable rent, Shared Ownership and Rent to Buy. This sentiment indicates that there is a resolute commitment to providing support to people, regardless of economic circumstance, in order to ensure that there is affordable housing available for all in the future.
The chancellor has also committed resources to find resolutions to current “lack of land” issues, which, over time, should also encourage developers to invest.
Many experts agree that the proposals are positive and that they will only serve to strengthen the wider economy, help those who are currently struggling financially, encourage positive gains within the trade and skilled jobs sector, and provide healthy foundations to help build solid infrastructures for new and existing communities.
Overall, it can be argued that the chancellor’s investment pledges will encourage positive changes within the housing market. With further healthy investment, an amenable application process, and a focus on helping developers, the future of the housing sector looks buoyant and should continue to grow.
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