x
By using this website, you agree to our use of cookies to enhance your experience.
STAY CONNECTED!
    
newsletter-button

New homes for sale at record low in 'nightmare scenario'

23 August 2010
Written by rosalind renshaw

The number of new homes listed on property portal SmartNewHomes has fallen to a record low.

Steve Lees, marketing director of SmartNewHomes.com, which claims to have 80% of market share, said: “CLG Secretary Eric Pickles was quick to sweep away the Regional Spatial Strategies that formed the basis of the previous administration’s housing policy.

“In its place, however, is a policy vacuum – a nightmare scenario for the industry.

“The result has been a dramatic decrease in the number of new homes coming on to the market. The figures for July show a new record low in the number of new homes for sale for the second consecutive month.
 
“With a consultation paper not due out until late October at the earliest, and primary legislation unlikely to receive Royal Assent before November 2011, housebuilders are increasingly concerned about how they can be expected to operate, given the total lack of any planning policy framework.”
 
He said that the planning issue has the potential to seriously destabilise the new homes market.

Comments

  • icon

    PeeBee:
    I agree with you.
    However my point was not clear. It was to do with the coarse total availability of housing relating to total demand.
    Slegehammer view I know but I think mainly true.

    • 24 August 2010 11:56 AM
  • icon

    Ray: I would agree completely with your old MD's wise words. Unfortunately, today's PLC builder cannot work to that principle. With countless shareholders to please, it's ALL about numbers to them...

    • 24 August 2010 10:12 AM
  • icon

    An old MD of mine once said to me..."If you have a demand for 20 make 19, you will sell them all!
    Whatever the P's & Q's of the housing market it still applies.
    Shortage of new property means existing ones will GENERALLY maintain their value, except for temporary blips. It could be years before balance.
    Homeowners - how's that!

    • 23 August 2010 14:37 PM
  • icon

    Housing starts well below what is needed and has been for a few years- long term investment in property looking sound as supply cannot match demand once this blip has corrected itself and lenders, lend!

    • 23 August 2010 13:40 PM
  • icon

    Never herd of them!

    • 23 August 2010 12:57 PM
  • icon

    I agree the uncertainty about planning is a nightmare for developers, which will be an additional factor further reducing the supply of new homes, so the situation will get worse!!!

    The Government is very ignorant about the impact of 'localism' which will empower NIMBYISM so planning will grind to a halt unless the proposed consultation is effective in limiting Localism on Planning. After all, we can't have localism on Building Regs, so why have it on planning? Localism has to have sensible limits, doesn't it? If we have it on planning, maybe we should have different income taxc rates for different neighbourhoods? We could create jobs for Civil Servants to work it all out!!!

    The shortage of new homes is probably incluenced by a shortage of funding for developers and a rise in sales 'off-plan' so new homes don't get punted around for long. We've got people waiting for new homes; if buyers are stretching to move, they want an exceptional product they don;t need to spedn money on. Low running and heating costs are more important now than ever before making the premium for new homes much easier to justify.

    Do you agree?

    • 23 August 2010 12:37 PM
  • icon

    I don't think so. New properties listed on SNH get there in two ways: new releases on existing developments; and new developments entering the supply stream. BOTH of these would have had plans passed LONG before the new Government came to power.

    SNH need to look to other factors, methinks...

    • 23 August 2010 11:43 AM
  • icon

    Its a "good" way for the government to keep voters' house prices artificially high.. Prevent new homes from being built! Cheers!

    • 23 August 2010 10:29 AM
  • icon

    If a low number of properties on Smartnewhomes is a sign of market depression - we've been in a recession for quite some time...

    • 23 August 2010 10:08 AM
Breaking News
MovePal MovePal MovePal