In the six-month period from 1 April to 30 September 2022 there were 14,812 housing starts on site and 12,118 housing completions delivered through programmes managed by Homes England.
As part of their Housing Statistics report published today (the 1st of December), Homes England has found that the levels of starts and completions were lower than in the same period last year, mostly due to the transition between the Shared Ownership and Affordable Homes Programme (SOAHP) 2016-21 and the Affordable Homes Programme (AHP) 2021-26.
Historically, delivery has been lower during the transition period between programmes.
Trudy Woolf, sustainability director at Legal & General Surveying Services, said: “During the last financial year, we saw the property market enjoy a robust period of good health, but long-term growth is only possible if it is underpinned by consistent investment.
“To see almost 14,812 housing starts on site is a sure indicator of a resilient housebuilding sector, however, we still need more supply.
“There’s no question that the UK supply is growing, but the present pace of change is not fast enough.”
Homes England manages the Help to Buy (Equity Loan) scheme in England, however, the completions are reported by the Department for Levelling Up, Housing and Communities (DLUHC) (formerly the Ministry of Housing, Communities and Local Government (MHCLG)).
10,986 of housing starts on site in the six-month period to the 30th of September 2022 were for affordable homes.
This represents a decrease of 7% on the 11,810 affordable homes started in the same period last year, when they accounted for 73% of all housing starts.
The decrease can be attributed to the closure of bidding for the SOAHP 2016-21 in March 2021 and the gradual build-up of starts from the recently launched AHP 2021-26.
Of the affordable homes started in the first six months of this year, 2,095 were for Affordable Rent, an increase of 25% on the 1,680 started in the first six months of last year.
A further 1,751 were for Intermediate Affordable Housing schemes, including Shared Ownership and Rent to Buy.
This is an increase of 19% on the 1,471 started in the same period last year.
Additionally, Homes England data found that 799 were for Social Rent, a decrease of 8% on the 869 started in the first half of the previous year.
A further 6,341 affordable homes were started with the tenure to be confirmed.
The programmes delivering the highest proportion of affordable starts were: AHP 2021-26 with 65% (up from 20%); the SOAHP 2016-21 with 29% (down from 72%); and the Single Land Programme (SLP) with 4%.
Woolf added: “It’s not just quantity that matters though and it’s important that new supply matches demand for the types of home we need.
“A well-stocked housing supply should accommodate all people, in all parts of the country.
“Everyone deserves a chance at stepping onto the property ladder, so it is encouraging to see that a large proportion of all housing starts were for affordable housing.
“Providing more of these options will be increasingly important, especially as the Help to Buy scheme is no longer on the table.
Woolf advised: “As the cost-of-living crisis continues to bite, potential buyers will want to be sure that they’ve found the right home for them.
“Good mortgage advice is more important than ever, and a full property survey is vital to help spot any potential issues early and protect buyers from unplanned issues and costs further down the line.”
Further reaction:
Riz Malik, director of R3 Mortgages:
“A sledgehammer needs to be taken to the UK’s affordable housing strategy.
“According to the report, housing programmes delivered by Homes England resulted in 12,118 houses completed between 1 April and 30 September 2022.
“The UK’s population is in excess of over 68 million. Proportionally the number is so small my calculator goes into meldown.
“In addition, reference was made to the challenging macro-economic environment, which has impacted delivery.
“In a parallel universe without Brexit, I doubt we would be in the same position.”
Samuel Mather-Holgate of Mather & Murray Financial:
“The lack of housing stock in the UK, especially that of affordable housing, is a national disgrace.
“It’s the one main policy area that has dogged the Government for over a decade and they simply haven’t grasped the nettle.
“The term affordable housing means different things to different people but it is clear that there are some developments being recorded as affordable, but you’d need to be on a top salary and have a healthy deposit to afford them.
“It is really disappointing, but unsurprising, to see that there hasn’t been any major increase in affordable housing development starts or completions.”
Dorian Payne, director of Castell Group: “This data shows how far away we are from building enough affordable homes and how significant the affordable housing crisis is.
“One million households are on the housing waiting list according to Shelter.
“If private house builders slow down construction due to the current market and economic environment, it’s going to have a direct impact on affordable housing provision, arguably at a time when it’s needed the most.”
Joe Garner, managing director at NewPlace: “Until every single person has a permanent roof over their head, the figures are nowhere near good enough.
“We have over one million households waiting for a home in the UK, including people whose current housing has a serious negative impact on their (mental) health.
“People who are living in severely overcrowded housing. People who are homeless as a result of domestic abuse.
“There are people who have been on the housing waiting list for over a decade who may never get a home.
“Planning policy must favour the delivery of new homes until we meet every single need for housing.
“Quotas and targets are useless when local authorities fail to reach them without consequence.
“This, coupled with NIMBYism and political point scoring means we are failing the most needy in our society and must readdress our priorities urgently.”
Nicola Schutrups, managing director at The Mortgage Hut: “We need to create incentives for house builders to continue building new homes in this more turbulent market.
“Historically, as prices have softened, house builders have slowed production to support pricing in the market. “The Government should keep a close eye on this and ensure the market has the right incentives to keep the new build housing market moving, which not only supports consumers but also creates and maintains jobs in the UK economy.”
