4 INDUSTRY NEWS
FROM THE EDITOR
James Parker
Zoopla recently put out a report that (surprise surprise), said that the 1.5 million new homes by 2029 target wasn’t achievable. However what is somewhat shocking is the extent to which there may be a shortfall, according to the leading house-selling portal. There has to be some veracity to its fi gures, as it’d be unlikely to want to talk down the market unless there’s a pressing need – it said that it was not fi nancially viable for builders to build new homes across 48% of England.”
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This was put down to the fact that the overall cost of delivering a new home has grown by 17% since 2022, whereas sales prices have only gone up by 1% in the same period. As well as the necessary numbers required to hit the 1.5 million target only being achievable across half of the country, Zoopla said it was “much harder to build homes in affordable areas.”
New Housing Secretary Steve Reed may have sported a ‘Build Baby Build’ hat at the recent Labour party conference, but Zoopla said it was showing the realities of achieving these gung-ho aims. Materials and skills costs and raised interest rates are just the start of the problems.
The company reported that while 64% of southern England was seeing average sales prices at levels that “can support the cost of delivering new homes,” this fell to just 13% in the Midlands, and 10 per cent in the north of England.”
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Manningtree Park in Essex by City & Country is a 485-home scheme offering residents an unusual level of practicality combined with natural amenity, including a fl ock of rare breed sheep!
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Retrofi t, therefore, must be a major focus, but again the likely return on investment is questionable currently in terms of making it core business for mainly developers. We need to see a genuine National Retrofi t Strategy coming out of overnment, and soon in order for companies to realise that the business case for selling to homeowners is backed by a real cohesion of support.
If you want to engage consumers, I’d say jettison ‘retrofi t’ as a term. It means nothing to most consumers, and only suggests something ‘retrogressive,’ a throwback to the past. Surely we have to look at reusing the terms ‘renovation’ or ‘home improvement,’ if nothing better transpires? Job number two is to ensure that all of the recommendations made by the Energy Security Committee are included in the Warm Homes Plan – (over)due this month.
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In one of the big reveals at its September party conference, the Government unveiled plans for 12 new towns, but despite his new-boy enthusiasm, Steve Reed was only able to announce three actual sites. The new settlements at Tempsford, in Bedfordshire, Crews ill near Enfi eld, and South Bank in Leeds, ier will be a huge step towards what otherwise increasingly seems an impossible target of 1.5 million homes.
James Parker
In addition the market analysis from Zoopla “highlights a disconnect between viability to build and affordability for home buyers.” This raises a fundamental paradox that probably only overnment intervention can fi x, namely that where the returns make it viable to build, customers can’t afford to buy, and where they can, it’s not viable for developers.
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