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House building rates hit 30-year high

The latest data released by the government indicates that the number of new houses being constructed in England is the highest it has been for close to three decades.

In the year ending on 31st March, 2019, 241,130 new houses were built in total, which represents a significant increase on the number for the previous year. The year ending in March 2018 saw 222,190 homes built; meaning that almost 20,000 more homes were made available on the housing market in England compared with the number for the year before.

Up until this year, the highest number of new homes that were constructed in England in a single year since 1991, when records of the numbers first started to be kept, was 223,530. That number was reached over a decade ago, in 2008, and the tally for the year that ended March 2019 was 8% higher than that.

What makes this all the more encouraging for homebuyers and the mortgage industry, is that it suggests the housing market is recovering from the effects of the financial crash of 2008.

The government statistics factor in changes of use, conversions, demolitions and newbuilds, with 213,660 of the total number for the past year having been newly built houses. However, the numbers still have not reached the target of 300,000 each year that the government aims to hit by the middle of the 2020s.

More homes will mean more people seeking mortgages, which will ensure that advisors who have a CeMAP qualification are in heavy demand.

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