New builds have fallen to an all time low at a time when the demand for housing is dramatically increasing. The level has fallen to its lowest for three years. Figures from a government report out this week showed only 21,540 new homes were started by builders in the three months to June this year.
The lack of new homes, along with a growing population and mortgages being harder to obtain by first time home buyers seem to be pushing up the price of rent. The typical amount tenants in England and Wales pay reached a new high at £725 a month.
Gabrielle Omar, architect and star of the most recent series of the TV-reality show The Apprentice, said “Bold action is needed to help the faltering construction sector. Frustrated first time buyers are finding it difficult to get a foothold in the property market simply because they cannot afford it. With less new homes being built and inflated rent prices, prospective home buyers are left with limited options.”
Gabrielle concluded, “The figures depict a problem with the housing market which needs to be addressed quickly, the population is on the increase and the lack of sufficient housing will only continue to make it difficult for first time buyers and renters alike. The decline in the construction of new houses can be justified by the current economic climate, although the situation could be improved if planning laws were more relaxed to cater for the rise in demand.”