We've highlighted some of the latest New House Builder headlines in the UK for January 2017.
Housing Minister, Gavin Barwell, has ordered developers to halt future sales of leasehold houses, or face Government action. Major housebuilders may need to compensate home buyers locked into leasehold contracts, amid accusations of “the PPI scandal of the property sector”.
In a new report, builders say that planning conditions are holding up new homes being built. Rather than granting permission for a mix of sites and sizes, local authorities are approving an increasing number of large strategic sites. There are also several ‘pre-commencement’ conditions so builders legally cannot start construction until these are met, which can take some months.
This amount of land could accommodate over 1 million homes yet to be built, the housing charity, Shelter, has found, potentially leading to fresh criticism of the house-builders “land-banking”, where some accuse them of “hoarding land rather than prioritising building”.
The number of houses compared to flats being built in the UK has substantially increased in recent years. In 2008/9 flats accounted for roughly half of the new homes built that year. By 2015/6 this figure fell to only a quarter, with houses making up the other 74%. The increase in houses has also meant an increase in available bedrooms by 24.2%.
Persimmon shares have increased after a jump in revenues and sales, lifting the FTSE 100 to a record high. CEO, Jeff Fairburn said, “it feels like a confident market for house buying and there’s no reason to think that could change” despite fears based on the decision to leave the EU.