LandlordBuyer research finds 41% increase in homebuilding in last 10 years

BUCKINGHAMSHIRE, UK, 7 March 2024 - New research from LandlordBuyer found that homebuilding in the UK has increased by 41% compared to a decade ago, despite issues with overcrowding continuing to present challenges for local authorities.

The research found that between January 2023 and September 2023, 138,570 new homes were built in the UK. This was a 41% increase in the amount built 10 years prior (98,080 homes built between January 2013 – September 2013). 

 

Despite this significant uplift, over 1.1 million households across England and Wales were categorised as ‘overcrowded’ (4% of the total households). 

 

Overcrowding was higher in urban areas including Birmingham, London and Leicester and was found to be more common amongst private renters (7% of households), social renters (9% of households) in comparison to owner-occupiers (2% of households). 

 

LandlordBuyer Managing Director, Jason Harris-Cohen, said: “It’s absolutely essential that we build more new homes, and it’s great to see an uplift in supply over the last decade. While this is positive, we need to look at how the figures break down to establish why we still have a serious issue of overcrowding.

 

“While 153,300 new build homes were started in 2023, only 138,570 were actually completed/built. That means almost 15,000 new homes never made it over the line in the year construction started. 

“We know there has been a labour shortage and that the cost of materials has risen – both contributory factors at many stalled new build sites – so this needs addressing. Local authorities need to support housebuilders, rather than demonise them.” 

 

“The allocation of new homes also needs scrutiny. Overcrowding is most prevalent in the social housing sector but housing associations and local authorities only gained 32,290 new homes in 2023. Conversely, the private sector gained 106,280 new homes – an out-of-kilter proportion given owner-occupiers were the least likely to suffer overcrowding.” 

Jason claims that private landlords also have their part to play in helping solve the overcrowding issue.

He added: “New builds are an attractive proposition as they are low maintenance and energy efficient but they have always attracted a price premium. Furthermore, landlords have tended to favour apartments in city centre locations – the locations identified where overcrowding is at its worst. When figures show 7% of private renting households suffer from overcrowding, more houses to rent, rather than a saturation of flats, may help address the issue. 

“It does fall on housebuilders, however, to incentivise private landlords in the same way they do owner-occupiers. Legal fees paid, a stamp duty contribution and a furniture pack attached to family homes would help property investors reassess what they purchase and where.” 

ENDS