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TODAY'S OTHER NEWS

New-builds edging up as a proportion of overall sales market

A detailed analysis by Hometrack reveals that new-build transactions - running at roughly 10 per cent of all house sales for each of the past 20 years - are now accounting for 11 per cent and are still edging upwards. 

The Hometrack analysis looks at data from the Department of Communities and Local Government showing that new private housing starts are up by 3.1 per cent in the last year and up by 33 per cent over the last three years as builders increase output on the back of rising transactions and improved housing demand. 

Further specific support for new home buyers has come from Help to Buy which has been used for 27 per cent of all housing completions in the last year.

Hometrack’s analysis shows there are 58 local authorities where over 20 per cent of sales are currently of new-builds. 

The London borough of Newham has the highest concentration where there are more new homes started in the last year than sold in the entire borough in the previous year. This constitutes a new build concentration of 104 per cent and far outstrips the next two on the list in London - Lambeth on 38 per cent and Southwark on 36 per cent. All these areas have major regeneration schemes with homes targeted at buyers across London and overseas.

Outside London, Cambridge and the Ribble Valley (both on 42 per cent) and Midlothian (39 per cent) are the areas with the next highest concentrations of new-builds. 

Most markets with a high concentration of new build are those where land has been released for new development. Examples include Newport, South Northamptonshire and Blaby in Leicestershire. The list also includes other areas with significant new housing delivery such as Corby (28 per cent) and Milton Keynes (23 per cent).

However, there are by contrast many parts of the country where new private housing starts as a proportion of sales are well below the national average. Some 102 local authorities have a new-build concentration of less than five per cent, typically down to tougher planning requirements, land availability and the strength of the local housing market resulting in below average levels of new housing starts.

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