New home shortfall in Yorkshire and The Humber

Even with the glimmer of the resurgence of the housing market, there is still a significant shortfall in the amount of new home builds, which will mean higher prices, according to one national housebuilder.

The National House Building Council (NHBC) has revised estimates downwards to just 80,000 new home starts for 2008/9 for the whole of the UK. A considerable 104,000 less new home starts than in 2007/8.

Yet, in figures released by the Office of National Statistics, it is predicted that Yorkshire and The Humber regions alone need over 30,000 new homes every year between 2006 and 2031.

These predictions are based on household growth, with Yorkshire and The Humber being highlighted as one area that will grow the most, by at least 30 per cent. All of which equates to an estimated need of over 750,000 new homes in our region.

Carolyn Rushbrook, sales and marketing director for national housebuilder Miller Homes, Yorkshire region said: “The need for that amount of new homes in our region is certainly a challenge. Housebuilders are not currently building anywhere near the 30,000 new homes that are needed each year. But, as one of the region’s largest house builders, we will complete around 270 new homes this year. This is despite the fact that many of our competitors have reduced their building rates and even ceased build on some sites.

“The £500 million, promised in the budget last week, to help kick-start housebuilding and enable developers to resume building on mothballed sites, is a crucial shot in arm for the industry and plays a vital role in addressing the UK’s housing shortage. However, it is not yet clear as to how developers will be able to access these funds and as such, the Government needs to engage with housebuilders if this is to be truly beneficial.”

With some reports of a ‘bottoming’ out of the property market, Carolyn predicts: “The very real effects of demand outstripping supply of new homes will be to drive up prices in the medium to long term. We have heard many stories about the collapse of house prices, but what we should now be thinking about are house prices booming to levels where affordability is very difficult for everyone - not just first time buyers.

Miller Homes continues to be active with 14 developments across the region. The family-owned housebuilder also offers a variety of assistance packages designed to meet the needs of homebuyers from HomeBuy Direct, part exchange and deposits paid. All of which is very good news indeed for the individuals, couples and families whose very real need for housing is something the credit crunch simply cannot erode.