The number of newly-built homes is now at the highest level in seven years, new figures show.
According to data from the government, 139,690 new homes were completed in the year to March, a rise of 12% on the previous year and the highest number since 2008.
Housing and Planning Minister Brandon Lewis said: “We’ve got the country building again and are seeing our housebuilding efforts paying-off with this considerable increase in the number of homes built in just one year.
“This is real progress but there is more to do. That’s why we are going further and increasing our investment in housebuilding to ensure many more hard-working people can benefit.”
Housebuilding growth across the country
The figures show strong regional growth in Wakefield and London.
London saw 32% more homes being built in 2015 to 2016 than the previous year, with local authorities in Basildon and Haringey seeing completions soar 279% and 1039% respectively over the same period.
In Wakefield completions were up 59% from 1,028 to 1,634.
Housing crisis
Last week, Communities Secretary Greg Clark reiterated the government’s ambition to build a million new homes by 2020.
Clark and Lewis met with members of the Home Builders Federation, whose members build around 80% of new-build homes in England and Wales, to reaffirm the government’s commitment to tackling the housing crisis.
Clark said: “The action we have taken over the last six years to get the country building again has put the industry in a position of strength. We have doubled investment in housing and set out the largest affordable house building program since the 1970s.
“The need for new homes continues as does the government’s commitment to getting them built and extending home ownership to anyone that aspires to own a home of their own.”
There are fears that first-time buyers are being squeezed out of the market due to the dwindling supply of suitable homes and ballooning property prices.
According to the latest Nationwide House Price Index, annual house price growth rose slightly to 5.1% in June, up from 4.7% in May. Property prices rose 0.2% during the month to £204,968.
Last year, 142,890 homes were completed, a 21% increase on the previous 12 months. However, this number still falls well short of the government target of 200,000 new homes annually.
Tougher affordability checks from lenders and rising house prices have also made it increasingly difficult for first-time buyers with smaller deposits to get on the property ladder.
Low interest rates combined with the economic recovery have done little to reduce the need for rented housing, while house price inflation ahead of wage growth has pushed property prices out of reach for many.
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