Housebuilding to rise 55% over the next five years

Housebuilding to rise 55% over the next five years

Housebuilding, which has been leading the construction industry out of recession, is forecast to grow 55% to 167,000 new homes a year according to forecasts from real estate adviser Savills. But Savills warn that even their best case scenario for housebuilding will not create enough houses to satisfy needs.

 

A steep rise in housebuilding by the public sector is forecast to support the growth in output to 167,000 new homes a year by 2018, compared to the 2013 total of only 108,000. Even with this forecast growth however Savills warns that England alone will still be well short of the 240,000 new homes estimated to be needed each year to keep pace with demand.

 

Housing associations are expected to take the lead in public sector growth and are forecast to account for 20% of new housebuilding by 2018 creating local employment opportunities. Local authorities are also forecast to increase their housebuilding efforts from 1,655 this year to 10,000 in 2018.

 

The private sector is forecast to increase production by eight per cent a year in the five years to March 2018 to 107,000 new homes a year, a rise of 35% overall increasing recruitment of technical staff. This compares to the 203,320 homes built by the private sector in the peak production year of 1968, and the 2007 total of 154,210.

 

Savills director of residential research Susan Emmett said: “Historically, we have seen periods of similar growth in the 1980s and noughties but there is no precedent for faster growth over a sustained period,” says.

 

“Our forecast is therefore the best case scenario for private sector expansion and very much dependent on finance easing for SMEs. Indeed, we have made some robust assumptions about increase in output from both the private and public sector. It is worrying that even a best case scenario is still not good enough to meet our housing need.”

 

Photo: Lee Haywood

Please rate

Comments 

Ctrl + Enter

Most Read

How Blockchain Technology is changing the Energy Sector

How Blockchain Technology is changing the Energy Sector

The disruptive potential of blockchain technology is becoming more evident with every passing day. From the proliferation of cryptocurrencies, and its increasing applications in other areas including banking, gaming, music licensing, as well as the energy sector, blockchain technology is

How to deal with interview rejection

How to deal with interview rejection

Sorry we think you’re not the ideal fit for this position or sorry to inform you, but you are not exactly the candidate we were hoping for – these are some of the replies you may get from an unsuccessful interview, and while it can sting for a day or two, you should not dwell on it any

Mirroring England’s Young World Cup Team in Engineering

Mirroring England’s Young World Cup Team in Engineering

Alas, the cup didn’t come home. However, it's wasn't all doom and gloom as 4th placed England at the just concluded FIFA World Cup in Russia, were not initially expected to perform wonders. However, in the course of the tournament, the belief grew, and hopes were raised. Gareth

This website uses cookies to enhance your user experience. By continuing to use this site, you consent to our use of these cookies. See our Cookie Policy.