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NHBC report suggests Affordable Homes Programme may mean fewer homes being built (3 February 2015)

Date: 03/02/2015
Duncan Lewis, Housing Solicitors, NHBC report suggests Affordable Homes Programme may mean fewer homes being built

A report by the National House Building Council (NHBC) has found that funding changes could have affected the number of affordable new homes built by housing associations and local authorities in 2014.

Housing news publisher 24 Dash.com reports that new figures show a 4% fall in public sector building in 2014 – with new affordable homes down from 36,271 in 2013 to 34,771 in 2014.

The NHBC suggests the fall was a result of changes in funding through the Affordable Homes Programme.

The housebuilding sector, however, has reported a 9% increase overall in new homes registered – rising from 133,670 homes in 2013 to a total of 145,174 homes in 2014.

Regions of the UK which enjoyed a strong year in 2014 for increases in the number of new homes built include Yorkshire and Humber (24% rise), the West Midlands (16%), Wales (33%), Scotland (9%) and Northern Ireland (17%).

Chief executive of the NHBC Mike Quinton said:

“We are encouraged to see that overall house-building levels grew by 9% last year – building on the strong volumes registered in 2013.

“The regions were the big drivers of growth in 2014, showing that the recovery is no longer centred in London and the southeast.

“It looks like the detached home is making a comeback – with our figures showing that housebuilders are building the highest number of detached properties for a decade, with semis also performing well.

“Following an oversupply of flats outside London over the last decade, the growth in detached homes is restoring balance to the country’s housing stock to meet the diverse needs of the UK population.

However, Mr Quinton added that – while the overall growth last year had been welcomed in the industry – the UK housebuilding sector was “still building below the levels seen before the economic downturn and below what this country needs”.

“With the General Election just three months away, it is therefore very encouraging that housing remains a top priority for all the main parties,” Mr Quinton added.

The NHBC also reports the number of flats being built in 2014 had increased by only 5% - a total of 48,685 new flats were registered in 2014, just over half the number registered at the peak for building new flats in 2007, when 90,221 new flats were constructed.

The year 2007 heralded the start of the 2008 credit crunch after the banking crash, when construction slowed and in some areas of the country dried up completely.

The NHBC report also reveals that bungalows in the UK have been less popular with housebuilders in recent years, with a 16% fall in new bungalow homes in 2014, with 2,059 new bungalows registered. There was also a 2% fall in the number of new terraced homes built last year, with 26,600 registered.

Duncan Lewis Housing Solicitors

Duncan Lewis housing solicitors are one of the UK’s leading providers of Legal Aid housing advice and can advise private sector rental tenants, social housing tenants and private homeowners on a wide range of housing matters, including:

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For expert legal advice on housing law, call Duncan Lewis housing solicitors on 020 7923 4020.


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