Bradford & Bingley Land & New Homes report that the number of units sold
between January and March has increased by 33% against 2003 figures,
demonstrating continued confidence in the new homes market. National
director, Tom Harris commented: "We have experienced encouraging levels of
sales activity throughout the first quarter of 2004, a stark contrast to
the slow start of 2003. However, the number of new homes sites coming to
fruition and providing new housing stock is by no means matching this
growing demand."
South East Supply Still Short
Regionally, the new build market paints a mixed picture. In the South
East, planning restrictions and constraints continue to put pressure on the
supply of new housing stock to the market. Said Harris: "With much of the
available housing stock now sold and the number of new instructions fallen
from last year, the supply shortage looks set to strengthen further."
Bradford & Bingley reveal a 5% gap in the amount of property that is being
supplied to the South East market against the amount that has been sold
during the first quarter of 2004. He continued: "An example of how the
planning system is strangling the supply of new homes in the South East is
the number of sites that are 'in the planning pipeline' many of which have
been for over two years. By stalling permission there is now an increasing
backlog."
South West National Hotspot
The South West is now emerging as a new build hotspot. Demand from local
buyers and investors is bolstering an already buoyant market. Two and
three bedroom property is in high demand, developers are reacting to this
and supplying the market accordingly.
Demand Grows
Central England, incorporating East Anglia, is experiencing promising
levels of activity with visitor numbers on new homes sites up by 36%
against last year. Harris remarked: "Demand for new property of all types,
from 2 bedroom apartments to 5 bed executive homes, continues to grow
throughout the central belt. Although the number of new instructions has
increased by 16% this does not match this growth in demand. "
Northern Market Boosted By Buy To Let
Investor buyers are bolstering the Northern market, Bradford & Bingley
report that many of the new homes sites marketed in the first quarter of
2004 have been sold 'off plan' to investor purchasers. Although buyers are
keen, delays in the lengthy planning processes are creating a shortage of
new sites coming to the market, which could dampen activity later in the
year.
Harris concluded: "Despite our figures, market indicators demonstrating
increased confidence and demand, the new homes industry continues to suffer
at the hands of the planning office. The government commissioned report by
Kate Barker further confirms the severity of the housing supply shortage.
Historically the problem has been concentrated in the South East, however
our research suggests that it is much more widespread with lengthening
planning processes holding up many new developments."
