Development Finance News:-Nearly 46,000 new houses were started on site on schemes managed by Homes England last financial year – the highest figure in nine years.
The government’s housing accelerator added that 40,289 houses were completed – the highest level in the last four years.
Out of the starts on site 30,563, two thirds, were for affordable homes – a 10 per cent increase on the previous year. These were the highest numbers of affordable home starts for five years.
Similarly, 28,710, nearly a quarter, of housing completions in 2018-19 were for affordable homes. Homes England said this represented an 11 per cent increase on 2017-18 figures and the highest numbers for four years.
Homes England chief executive, Nick Walkley, said increased delivery of affordable housing was a positive sign at a time when the average house costs around eight times the average income.
“However, there is still a huge amount of work to do to make sure this trend continues. We’re just getting started and need the sector to join us in our mission to make sure we continue to deliver homes across the country for the people who need them the most.”
More developments built for rent
A total of 17,772 affordable homes started last financial year were for affordable rent – a 4 percent year-on-year rise. More than 11,500 were for schemes including shared ownership and rent to buy – a 24 per cent increase on 2017-18. The remaining 1,231 were for social rent – a 12 per cent decrease on the previous 12 months.
Of the affordable homes completed, 18,895 were for affordable rent – representing a 4 per cent decrease on the previous year. However, the 8,854 completed under affordable housing schemes, including shared ownership and rent-to-buy, represented a 75 per cent increase on 2017-18.
Brokers Hank Zarihs Associates said more partnerships between private property developers and the public sector were essential for hitting the 300,000 new homes a year target by the mid 2020s. The company added that developments in areas of short housing supply were well placed to gain competitive construction loans and property development finance.