New Residential Builds on The Rise in Britain
Good news for the construction industry of Britain, as construction output has increased by 1.5% in the last three months.
This statistic is lead by a 15% growth in construction throughout the North West, which official data has shown is at least 10 times the national average for growth rate.
New housing in the North West has been of incredible value to the construction industry as a whole over the country, with the value increasing by £368 million in this quarter compared the the same quarter last year (2017).
According to the Office of National Statistics (ONS), the output of new infrastructure has also seen significant growth, which puts Britain’s construction industry in a steady position before the new year and before Brexit becomes reality.
The North West has become a hustle and bustle of new housing developments, but even though this comes as welcomed news, it is believed there is still more to be done.
Although encouraging, a wider range of residential property needs to be explored, as the vast majority of North West builds are being marketed to suit the first time buyer.
Regardless, this is still very positive with huge benefits being spread across the North West and beyond, the fact new buyers are being targeted more than any other buyer is due to the Help To Buy scheme taking place.
The government run scheme was launched five years ago and is available until 2020, although aimed at any home buyer, not just first time buyers, the Help To Buy scheme is only accessible on purchasing a new build property.
A buyer is required to raise 5% of the properties value as deposit, which is much less than the previous 10%+ which first time buyers often struggled to provide. Since the launch of the Help To Buy scheme, first time buyers have gone from accounting for 37% of mortgages to 51%.
Given there is less than two years left of the scheme definitively being in motion, the British government are eager to get things moving in terms of new construction developments in the residential sector. This is not just for the first time buyer, more bungalows have been proposed to help the elderly move from larger housing and family homes are being thought of for those who need to up-size their property.
It is widely thought that fewer homes than are needed are being constructed as more and more people are wanting to get their foot on the property ladder. However, the statistics come as welcomed news that the construction industry is heading in the right direction for a successful future in terms of new residential builds.