It is recognised that there is a severe housing shortage of new homes nationally and this is particularly so in London and the South East. This has been compounded by the availability of credit for new build houses . As the UK population increases and more people head for the lager conurbations, the shortage of new build houses for town planners, local and national Government is a pressing problem.
Housing developers such as Barratt, Persimmon, Taylor Wimpey and Bovis having struggled initially in the credit crunch are steadily increasing their margins and this has lead to greater activity recently with a range of new build developments coming on stream.
The availability of mortgages for new build houses remains problematic, but many of the national lenders are increasingly willing to offer mortgages on new homes, particularly on a development, built by an established developer.
The issue of new build homes is so pressing that today, in a key not conference speech, it is anticipated that the shadow Chancellor Ed Balls, will unveil plans to build 100,000 new homes. The cost of these properties is anticipated to come from the sale of new 4th generation mobile phone networks. The focus of the speech is likely to be on spending raised from the sale of state assets, rather than further austerity cuts.
There is concern that 119,000 construction jobs have been lost in the last 2 years and the number of affordable homes has fallen 68% in the same period, Ed Balls will state.