One million homes target ‘in reach’

Government figures released today show that housing delivery is up 52% in the last three years and that almost 200,000 homes were added to housing stock in the last financial year.

Overall housing supply for April 2015 – April 2016 was 200,070, up 10%. In total 163,940 new build homes were built, up 6% (38% in past 3 years). When demolitions are accounted for, the net rise is 189,650. To achieve the government’s ‘one million homes in this parliament’ target, output needs to average 200,000 homes a year.

Pointing to the trend of rising development since 2012-13 (see table), HBF said the one million target is in reach if government maintains its approach.

It predicts net additions will exceed 200,000 next year and will continue to rise, with planning permissions now running at around 275,000 a year. Current permissions are likely to be built out over the next three to five years, meaning they will contribute to the government’s pledge figure.

Stewart Baseley, HBF executive chairman, said: “These figures provide the best evidence to date as to how much house builders have ramped up housing supply. The government’s ambitious target to build one million homes over the course of this parliament is now within reach.”

He attributed some of this success to initiatives such as Help to Buy, which has delivered almost 100,000 sales.

“Providing government continues to create an environment within which the industry can operate and grow house builders will continue to increase delivery of new homes. The house building industry will play a key role in driving our post Brexit economy,” he said.