INDUSTRY NEWS 5
Nine out of 10 new builds have defects, report finds
A total of 91 per cent of new build homes in the UK have defects or ‘snags’, and almost 40 per cent fail to meet their original completion deadline, according to a survey by the New Homes Review (NHR). The survey, conducted between 1
November 2017 and 31 October 2018, did however reveal that 65 per cent of buyers of new builds were satisfied with the condition of their property. The survey found that 75 per cent of
snags and defects were resolved in a timely manner, and 63 per cent of the properties were completed on time.
Location was the most important reason for choosing the property, and being close to family and friends, which was ranked third in the firm’s previous report, has slipped to fifth.
There were mixed views when new build homeowners were asked about the service provided after they moved in. 49 per cent were “unsatisfied,” and 33 per cent said they were “completely satisfied.” The NHR believes this shows that builders and developers need to continue to work on the after sales service, which is often handled by the developer or builder’s head office rather than the on-site team. Kate Hughes at New Homes Review commented: “Builders and developers play a huge role in delivering people’s dreams, designing houses that people want to live in. Many of them are also trying to improve the service that they provide to homebuyers. The NHR report shows that there are improvements since 2017, but there is still more to be done, in particular around snags and defects which is still very high at 91 per cent. While the majority are resolved in a timely manner, it will be an unbelievably frustrating time for the 25 per cent that are not.”
“What is clear from the NHR survey is that home buyers have very high expecta- tions, and that better communication on any delays or issues would be better for everyone involved in the process,” Kate added. “The homebuyer would be better informed and feel more in control, and it would be easier for the builder or developer to be open about the issues, many of which can be out of their control.”
Most of London’s boroughs (28 out of 33) failed to meet their targets for housing need during 2017-18, and 20 boroughs delivered less than half of the units required, according to a report. Knight Frank’s London Residential
Development Report (H1 2019) also revealed that house prices declined by 0.6 per cent in 2018, although adding the caveat that performance differs greatly by borough as markets are increasingly localised. It was reported that there were 20 per cent fewer dwellings added to London’s housing stock during 2017-18, while delivery remains well above the pre-crisis average. Knight Frank commented that the construction and planning pipeline suggests that delivery may fall further. Delivery of Shared Ownership via Section 106 was shown to have more than doubled in three years, and was reportedly likely to increase further as land values adjust to new GLA policies. Also revealed in the report was that construction costs have risen 14 per cent in three years which, along with economic uncertainty, is exerting pressure on land values.
Patrick Gower, residential research associate at Knight Frank commented: “The market faces structural challenges that are suppressing long term sales activity, including stretched affordability, tighter
The number of new homes registered by the UK’s housebuilders and developers in February reached 10,721, NHBC’s latest figures have revealed.
This represents a 7 per cent decrease on the same month in 2018. This year 7,550 were registered in the private sector (9,080 in 2018), with 3,171 in the affordable sector (2,495 in 2018).
For the rolling quarter between December and February 34,199, new homes were registered compared to 34,723 a year ago – a decrease of 2 per cent. During this period there were 23,105 new homes registered in the private sector (26,562 in 2017/18: -13 per cent) and 11,094 in the affordable sector (8,161 in 2017/18: +36 per cent). However, despite the slight decrease overall in registrations, half of the 12 UK regions experienced some growth in this period, including London (+17 per cent), the north west (+11 per cent) and the south east (+9 per cent).
Commenting on the latest figures, NHBC chief executive Steve Wood said: “Continuing the trend from January we are seeing strong numbers in the affordable sector, but an understandable drop in the private sector amid the ongoing Brexit uncertainty.”
WWW.HBDONLINE.CO.UK
Most London boroughs failed to meet housing needs targets in 2018
mortgage regulations introduced in the wake of the financial crisis, and patchy house price growth – though reports, including the latest RICS sentiment survey, indicate January was a stronger month than November and December. “These factors, and a challenging
policy environment, have also weighed on residential construction. Upward momentum in annual housing delivery that had continued unabated since 2012-13, reversed in 2017-18, with the number of dwellings added to total London housing stock, including conversions and change of use, falling 20 per cent year on year.”
Over 10,000 new homes registered in February
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52
