As we covered in a recent article there has been a 15% increase in the number of new homes built across the UK comparing the period from March to May 2015 against the corresponding period in 2014. While this in itself is very encouraging in relation to the future of the UK construction industry we thought it would be interesting to look at some of the hotspots in England.
During the periods in question there was an increase in the number of new homes from 2,836 up to 4,167. This near 47% increase would suggest that the economy the West Midlands is in rude health and property investors are looking towards this region again. While some would argue that the figures in question come from a relatively low base the fact remains that historically the south of England has generated the highest number of new property builds. Is the tide beginning to turn?
Outside of London there is no doubt that the south-west of England houses the vast majority of the country’s wealth and businesses. This has obviously prompted a very active housebuilding industry in this particular region with some experts suggesting there is too much focus on the south-west from the current and previous governments. It will therefore be little surprise to learn that the number of new houses built has increased from 3,413 to 4,995 which equates to a rise of 46.35%.
The North West of England houses cities such as Manchester and Liverpool and has been mentioned by many experts over the years as a powerhouse of the future. While this rise to “powerhouse” status has not yet been as strong as many had suggested there is no doubt it is seen as an interesting investment arena both in terms of business and property. The number of new houses built over the periods in question increased from 2,812 up to 3,928. This increase of nearly 40% has turned a new focus upon the economy and the Northwest in general – especially when you bear in mind it was one of the first regions of the UK to take on more regional budgetary responsibility from the government.
New builds throughout England
While the three regions listed are head and shoulders above any other areas of England it was interesting to see there was still an increase of 11.85% right across England. The total number of new builds came in at 38,308 which is a significant increase from the previous figure of 34,247. As has been suggested, some of this increase may well be down to an overhang prior to the election but there is a growing confidence we have seen a turning point from what has been a difficult time for the construction industry.
It is all good and well to hear about the economy growing and mortgage finance rising but the proof is in the pudding and the number of new property builds is certainly reflecting a renewed confidence. We can only hope that the UK government is good to its word in supporting and nurturing the industry going forward – something which all political parties promised prior to the election.