Housebuilding in England
By Lesley Fairclough, Ward Hadaway
Despite the uncertainty as to what effect the UK’s exit from the European Union in 2019 will have, major UK housebuilding companies have had a strong year with increased sales of new homes.
Over a long period, the number of new houses being built in the UK has been much lower than the number needed to keep up with population growth and demand.
At present there are around 70,000 more households being formed each year than there are new homes being built. Average house prices have risen faster than average earnings, and it has been difficult for many people to buy their first home.
Following the global financial crisis of 2007-08, interest rates in the UK have been at historic lows, and the availability of mortgage finance has improved.
There have also been various government initiatives, such as ‘Help to Buy’ loans, which have helped first time buyers buy their first home. The demand for new homes, together with the current availability and affordability of lending, has resulted in good trading results for housebuilders.
The issue of how to build more homes still needs to be addressed. A recent Government paper set out proposed reforms to housing in England, which included making more land and funding available and simplifying the planning process which can be lengthy and complicated.
It also wanted to encourage more affordable housing, and to bring in more institutional investment into housing.
Lesley FaircloughWard Hadaway, Newcastle upon Tyne, UK
T: +44 191 204 4000
Ward Hadaway is one of the UK’s Top 100 law firms with offices located in Newcastle, Leeds and Manchester in Northern England. It offers a full range of legal services, acting for national and international public and private entities, entrepreneurs, healthcare organisations and Government agencies.
Lesley Fairclough has over 27 years’ experience in development work and specialises in commercial and residential development. She also acts in complex site disposals for clients. Additionally, Lesley is a Notary Public, enabling her to offer a range of services to clients concerned with international matters.
Published: Winter 2017 l Photo: lpictures - Fotolia.com