“By revealing a fifth successive annual decline in net additional dwellings in England during 2012/13, these figures make it absolutely clear why the government has been justified in taking action on a national scale to reignite the construction sector. At just 124,720, the net supply of homes in the last year was the lowest it has been in the last 13 years – and barely half the volume seen at the peak of the market.*
“So far the Help to Buy equity loan scheme has engaged over 900 developers and prompted an impressive number of registrations from aspiring homeowners. While the supply has slowed, there remains a great untapped demand for property among the British public. Thanks to Help to Buy, the supply figures for 2013/14 should at least begin to paint a better picture.
“Even so, we should be under no illusions as to the scale of the challenge facing us. IMLA research earlier this year† suggested that homeownership levels will permanently suffer unless the direction of market policy and regulation is checked. The hopes of the construction sector are resting on the short-term impetus of Help to Buy to prompt a sustainable recovery, without which we may facing a situation by 2020 where just a third of young households own their own homes: little more than half the number seen in 1993.”
*223,530 in 2007/08 – Source: DCLG, Net Supply of Housing 2012/13: England
†IMLA, Rebalancing the housing and mortgage markets — critical issues