The Royal Institute of Chartered Surveyors (RICS) Construction Market Survey for the third quarter of 2013 reveals that 41% of surveyors report a rise in privately-funded housing projects, this is compared to just 31% in the second quarter of 2013.
This was extremely positive news, as all regions of the UK witnessed an upturn in house building activity as we see the third quarter of 2013 come to a close. This is the first time all regions reported an increase in house building activity since the market crash in 2007, suggesting we could be seeing the long awaited rise in the number of newly built homes being constructed. 41% of surveyors confirming the rise in privately-funded housing projects is the highest reported rise since the survey began in 1998.
Simon Rubinsohn, RICS Chief Economist comments: “While it’s certainly good news that construction – and especially house building – is finally on the rise right across the UK, we are certainly not out of the woods yet”.
“Critically, we’re still way behind in terms of building enough homes to meet the nation’s growing housing need and overall construction projects are at a historical low. In the face of this challenge, it is a particularly concerning that we are already receiving reports of some skill shortages as well as capacity constraints for some building materials such as bricks.”
Whilst there has been a substantial increase in new starts amongst the national house builder, we are starting to see the return of the regional developer too.
Chris Smith, head of Ryder and Dutton’s New Homes Department comments, “We have seen an notable increase in the level of transactions and there are two reasons for this. The main one is the introduction of the Help to Buy scheme. Since 2007 a purchaser needed at least 15% deposit for a new build property, making it impossible for many buyers to get onto the ladder. With the introduction of Help to Buy they now only require a 5% deposit and can apply for an equity loan up to 20% of the purchase price, making new build much more attractive”.
“Some developers acquired HCA funding last year under the ‘Get Britain Building’ scheme, and this allowed them to build out schemes or finish developments that had lay dormant since the housing market crash. We have seen an increased level of interest in those sites that are now being finished as buyers now have the confidence to buy into these schemes, and this coupled with mortgage availability has contributed to the increased level of sales activity”.
If you are thinking of buying a newly built home you can contact us for advice on 0161 925 3235 or alternatively here is the list of new developments we currently have available.