Additional 686,000 homes needed in North West

The Government has revised its figures for the number of new homes needed in the region. In a time when housebuilding levels are decreasing, there is a real challenge to the North West.

Figures released by the Office of National Statistics on the 11th March predict that the North West needs over 27,000 new homes every year between 2006 and 2031. In 2006-7, there were just 22,750 new homes built in the region and in 2007-8 the number was 26,050. But that was before the credit crunch, recession and sharp downturn in building.

The new predictions are based on the most recent evidence of household growth. With population changes, and changes in the way we live, an additional 686,000 homes will be needed in the North West by 2031.

Steve McElroy, Sales and Marketing Director for Miller Homes, North West Region commented: “There is a real challenge here. To build all the homes that are needed for the increasing population and for a population that is increasingly living in single person households.

“People marrying later, the divorce rate, single parents and longer life expectancy, will impact on the housing needs in our region. In 2006, there were 2,931,000 homes in the North West. By 2031, we will need 3,617,000 homes - a 23% increase or 686,000 new homes.

“Housebuilders are not currently building anywhere near the 27,000 new homes that are needed in the region each year. Miller Homes is one of the largest housebuilders in the region and we will complete around 400 new homes this year. But many of our competitors have reduced their building rates, even mothballed sites. We are expecting to see a very sharp downturn from the 26,000 built last year. The National House Building Council - NHBC have revised estimates downwards to just 80,000 new homes starts for 2008/9 for the whole of the UK. In 2007/8 there were 184,819 new homes started in the UK.

“The effect of this undersupply of homes will be to drive up prices in the medium to long term. We have heard many scare stories about the collapse of house prices” says Steve.

“What people should be worrying about are house prices booming to levels where affordability is very difficult for everyone not just the first time buyers. Long term undersupply, as the Government and the Office of National Statistics are predicting, can only lead to fast price growth. We are predicting this will be a substantial and increasing problem in the years following the recession.”

With 19 developments in the North West, Miller Homes are very active in the region. They expect to build up to 271 new homes; apartments and 3, 4, and 5 bed houses, at their four developments in Liverpool and surrounding area: Connaught Green in Anfield, Bridgewater Park in Netherley, Scholars Way in Windle and The Foundry in St Helens. Latest information and special offers are also on the website: millerhomes.co.uk.