Today’s release of the new half-year Homes England housebuilding statistics paints a concerning picture for the UK housing market.
The data, covering the period from 1 April to 30 September 2024, highlights a notable decline in both housing starts and completions.
Housing Starts Plummet in Q1 2024
The latest figures from the Office for National Statistics show that house building starts have dropped by 34% in the first quarter of 2024 compared to the same period in 2023.
This significant drop brings the total number of starts down to 29,820, marking the worst quarterly performance since 2016.
Affordable Housing: A Mixed Bag
Despite the overall decline, there is some positive news on the affordable housing front. In the financial year 2023-24, 29,067 of the housing starts on site were for affordable homes, representing 82% of all starts.
However, this is a slight decrease from the previous year, attributed to the transition between different housing programs.
Statistics at a Glance
Category |
2023-24 |
2022-23 |
Change |
|---|---|---|---|
| Housing Starts | 35,676 | 37,099 | -4% |
| Affordable Housing Starts | 29,067 | 29,212 | -0.5% |
| Market Starts | 6,609 | 7,887 | -16% |
| Social Rent Starts | 3,833 | 2,340 | +64% |
| Intermediate Affordable | 3,553 | 4,295 | -17% |
Future Supply
The decline in housing starts and completions is alarming, especially given the static supply of new homes. Only around 235,000 new homes gained full planning consent in the twelve months to June 2024, which is barely enough to match the current rate of housebuilding.
This thin margin between consents and delivery suggests a likely fall in supply in the immediate future.
Calls for Government Support
Melanie Leech, chief executive of the British Property Federation, emphasized the need for further government support:
“The housebuilding figures for the first quarter underline the scale of the challenge in delivering the government’s target of 1.5m homes by 2029. We need to supercharge the build-to-rent sector and look at how to unlock the delivery of affordable housing of all tenures.”
The Governments Challenges
The new government has announced changes to the planning system to boost housebuilding, but the current figures highlight the significant challenges ahead.
With annualised starts more than halving in a year, there is a pressing need for substantial increases in planning permissions to meet housing demands.
A Critical Juncture for UK Housing
The latest statistics from Homes England underscore the critical state of the UK housing market. As the government grapples with these challenges, it is clear that innovative solutions, such as enhancing the build-to-rent sector and increasing subsidies for affordable housing, are essential to meet the housing needs of individuals and families.
Tags: UK housing market, housebuilding decline, affordable housing, government support, planning system changes, housing statistics.
Sources: THX News & Homes England.
