Demand for new homes fuels UK construction recovery
Posted 20 November 2014 by Keith Osborne
The UK construction sector is going from strength to strength thanks largely to a rise in the number of new homes being developed as housebuilders actively seek to increase the supply of residential properties coming onto the market in order to meet growing demand for new build homes.
The latest data from the Office for National Statistics (ONS) reveals that demand for new homes is now at its highest level since its records began more than four years ago.
Demand for new build properties is being fuelled by a number of factors, including less stringent mortgage lending conditions and the introduction of the government-backed Help to Buy scheme.
“The Help to Buy scheme and a renewed willingness on the part of banks to lend to borrowers with smaller deposits played a significant part in boosting demand all across the country, giving first-time buyers a better shot at the goal of homeownership,” said David Newnes, director of LSL Property Services.
Although housebuilding is making what Newnes describes as “headway across the pitch”, he insists that we are still a long way from seeing “the form that was in evidence before the [pre-recession] crash”.