The news that only 26% of new homes being built are detached houses, has prompted BuildStore to state that they believe developers to be responding well to the Government’s drive for new homes. 185,000 new homes were completed during 2006, the highest number of completions since 1989.
However, more than half of the new builds are apartments leaving only 48,000 new detached homes. This means the demand for detached houses is outstripping supply, with figures from the NHBC showing that prices are rising three times faster than those of apartments.
John Hay, head of financial services marketing and product development at BuildStore, said: “Almost all self-builds are detached houses and typically they are more spacious and on larger plots than a developer house.
“With 25,000 homes being built each year, self-builders currently account for about a third of all new detached homes. And given that typically a self build home is worth 25%-30% more when finished than the cost of the land and build, it can prove the best option for many families who want a decent sized home at an affordable price. The focus of the national housebuilders on apartments will only result in an increase in the number of people looking to create their own detached home themselves.”
