New Build Housing – North/South Divide Grows Every Year

• Browse By Section
• News
• New Build Housing – North/South Divide Grows Every Year

APRAO research shows that over the last five years, an average of 168,930 new homes per year have been delivered across England. The South-East leads the way when it comes to regional new-build delivery.

The research findings were released after the government’s commitment in the spring budget to deliver 8,000 new homes across London alone in just two regeneration projects. The chancellor announced that the government will invest £242 million to support them.

Property development specialist APRAO analysed Gov data looking at historic new-build housing delivery over the last half-decade across each region of England, as well as 10 major cities, to see which areas of the property market have seen the most consistent level of new homes built based on the average annual rate of delivery.

London is not tops

While London may have been the sole focus of Jeremy Hunt’s budget where housing supply is concerned, the research by APRAO shows that the capital doesn’t take the top spot when it comes to historic new-build delivery.

In fact, it’s the South-East that sits top with an average of 30,818 new homes built per year over the last five years.

The East of England has seen the second largest level of new-build delivery with an average of 21,068 homes built per year, while the North-West also ranks ahead of London with 20,656 new homes delivered on average each year.

City level

However, when analysing the data at city level, London does sit top of the table and by quite some margin. Just Manchester comes close to the level of new-build housing delivery seen across the capital, with an average of 7,650 new homes built each year.

Leeds ranks third in this respect, although with just 2,012 new homes delivered on average each year, the city has seen a minute level of new-build supply versus the capital.

Drop in the ocean

CEO of APRAO, Daniel Normal, says: “The issue of housing supply is one that has largely been ignored in previous budgets, with the government instead choosing to focus on buyer demand based initiatives in order to keep house prices buoyant. So it was great to see the commitment to deliver 8,000 new homes across London, albeit a relative drop in the ocean compared to the actual need for new homes.

“In fact, the sole announcement for new homes equates to just 0.02% of the government’s total budget and some may also argue that the level of housing supply across our major cities is a tad out of kilter, with London seeing a vastly superior number of new homes delivered over the last five years.

“Until the government commits to addressing the housing crisis at a national scale, not just in London, this market imbalance will continue.”

Picture: The South-East is home to most consistent level of new-build housing supply.

Article written by Brian Shillibeer
21st March 2024

Share

Related Articles