Falling number of new housing developments raises concerns over the government's 1.5 million homes target
The number of new build housing developments coming to market on Rightmove has dropped to its lowest level since January 2017, the property listing platform revealed.
The data, which tracks new build development listings over more than a decade and excludes retirement properties, points to a significant slowdown in supply at a time when the government has pledged to deliver 1.5 million new homes during the current parliament.
Rightmove has called on the government to address the shortfall through a series of measures in the upcoming Autumn Budget, including the removal of stamp duty for first-time buyers on both new build and resale properties, greater investment in affordable housing to give developers more certainty, and targeted demand-side support for first-time buyers.
The platform noted that viability remains a significant challenge for housebuilders, with rising construction costs, affordable housing obligations, local infrastructure requirements, and elevated interest rates all weighing on development decisions.
"Despite the historically high number of available homes for sale, there is still a long-term shortage of affordable homes in the right place," said Colleen Babcock (pictured right), property expert at Rightmove.
"We need more homes to support people at every stage of the moving journey, from first-time buyers to downsizers."
Nathan Emerson (pictured right), chief executive of industry body Propertymark, cautioned that new supply alone would not resolve the housing challenge.
"Ensuring there is enough housing for a growing population is essential," said Emerson. "While ambitious housing targets have been set across the UK, building new homes is only part of the challenge.
"Thriving communities also need investment in jobs, education, healthcare, transport and policing, alongside robust supply chains, a skilled workforce and a stable economy to keep housing accessible for both buyers and renters equally."
According to Nicholas Mendes (pictured right), mortgage technical manager at London broker John Charcol, the slowdown would be felt most acutely at the affordable end of the market.
"A slowdown in new developments coming to market is unwelcome news for first-time buyers, but the impact is more nuanced than a straightforward jump in prices," he said. "The affordable end of the market is where a fall in new developments really bites; new builds are typically a key source of homes aimed squarely at first-time buyers, often with developer incentives and shared ownership options attached, so developers building fewer of them shrinks that pipeline directly.
"Over time, that concentrates first-time buyer demand onto a smaller pool of suitable existing properties at the more affordable end of the market, and that's where any upward pressure on prices would build if the shortfall persisted. The market can absorb a temporary dip, but a sustained fall in new development risks locking another generation into renting for longer."
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