Work started on £55bn worth of new-build homes in England during the 2022-23 financial year, research from Sourced Franchise has revealed.
Sourced Franchise studied new-build start data from the past five years to see how this current period of economic turmoil has affected the construction rate and sale price of new-build homes in England.
A new-build house or flat is most often counted as a ‘start’ from the moment on-site construction begins; for example, when the foundations are laid for a block of 100 flats, that is counted as 100 ‘starts’.
In 2022-23, there were 137,800 starts in England. This was a 1.4% decline from the previous year, but the second highest number of starts since 2018.
Regionally, the annual change in the number of new-build starts ranged from a 13.4% increase in London to a 14% drop in Yorkshire & Humber.
Meanwhile, 2022-23 saw a 13.8% annual increase in the average new-build house price, climbing to £399,063.
The South West (16%) recorded the largest annual price growth, followed by the East Midlands (15.9%) and West Midlands (14.8%). England’s lowest growth was recorded in London (9.3%).
The capital was the most expensive new-build region, with an average price of £559,569. This was followed by the South East (£483,944) and the East of England (£469,848).
The total estimated value of new-build starts in 2022-23 was £55bn in England alone.
£11bn of this value was located in the South East, followed by London (£8.9bn) and the East (£8.8bn).
Chris Kirkwood, director at Sourced Franchise, said: “It’s great to see that the new-build sector has remained largely undeterred by the current economic landscape and the sector is continuing to push forward to deliver a much-needed boost to housing stock levels.
“While total starts may have declined marginally year on year, a notable £55bn worth of property is making its way to market, although it’s fair to say that there is quite a disparity in delivery from one region to the next.
“This is often the case when it comes to housing delivery and decisions on what to build and where will always be driven by market demand, which in turn, ensures a robust price is achieved when homes do reach the market.”
