Housebuilding Sees 10% Boost in Q4 2023: A Sign of Market Recovery?
The latest figures from the Office for National Statistics (ONS) reveal a 10% increase in housebuilding in the final quarter of 2023, with 50,650 new homes completed. This marks a significant upswing from the 45,850 homes completed in the same period the previous year.
New homes under construction
This growth is a welcome respite from the economic pressures that have constrained the housing market in recent years. According to Kevin Roberts, managing director of Legal & General Mortgage Services, the healthy level of housebuilding activity, combined with ongoing competition on mortgage pricing, has given prospective buyers a reason to be optimistic.
“What’s more, last month saw a significant rise in new property listings, pointing towards a market that is slowly but surely re-establishing itself.” - Kevin Roberts
New property listings
The increase in housebuilding is a positive sign for buyers, who now have greater choice when shopping around. Moreover, the market is stabilizing, which is encouraging for those looking to purchase a home.
Phil Lawford, national account manager at Saffron Building Society, notes that while the mortgage market has faced challenges on the demand side, the supply side has also faced significant hurdles, including higher material costs and a slower business pipeline.
Housebuilders navigating challenges
However, Lawford suggests that there are opportunities in the new build market that could help boost supply. One way to achieve this is by supporting self and custom build projects, which could help increase the number of new homes being built.
Self and custom build projects
In the UK, around 13,000 people choose to build their own homes every year, making the sector similar in size to some of the country’s larger national housebuilding firms. However, the UK lags behind other European countries in this area, highlighting the potential for growth.
Custom built homes
As the housing market continues to recover, it’s essential to explore innovative solutions to boost supply and meet demand. By supporting self and custom build projects, we can unlock new opportunities for growth and provide more people with the chance to own their dream home.
