Global real estate services provider Savills has predicted an increase in the delivery of new homes in the UK this year. In its report “UK Residential Development Land”, Savills provided a positive outlook for the UK residential housing market in the wake of house-builders buying more lands for new builds.
The second half of 2016 saw significant sales of new-build homes in the UK and this prompted house-builders to acquire more sites to replenish the stock. In addition to this, the Government’s support through the £3bn Home Building Fund and Help to Buy Equity Loan (now extended to 2021) have also contributed to the growth in housing.
Savills is of the view that low risk sites will continue to remain in high demand, especially urban and suburban sites in regional cities of the UK, as house-builders expand their presence. The prices of new-build homes in the regional cities are less compared to the South and especially London.
The £2bn Accelerated Construction Fund, which aims to deliver 15,000 homes on surplus public sector land, will also bring more development land to the market, Savills said in its report. The 2017 outlook for the UK housing market continues to remain optimistic and it is to be seen how house-builders take advantage of the situation.
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There is land buying appetite from housebuilders who have seen relatively strong sales rates in the second half of 2016 with targets to continue to expand their output.