Mortgage Advice Bureau comments on DCLG net supply of housing figures

Andy Frankish, New Homes Director at Mortgage Advice Bureau (MAB), commented:

“The 2013-14 financial year marks the first time the net supply of housing has increased in six years: although we still have some way to go before we reach pre-recession levels of house building, a boost in the number of new homes is a sorely needed addition to the market. For too long the demand for new homes has vastly outweighed supply, driving up house prices and making finding a suitable home difficult for consumers.”

“The introduction of the government’s Help to Buy equity loan scheme has been instrumental in increasing construction levels of new-build properties, with DCLG data showing new build completions were by far the biggest component (95%) of housing supply in 2013-14. The scheme has increased demand for new homes as well as providing funding for builders, who can now invest in this type of construction with confidence.”

“Current lending conditions are putting potential buyers at a great advantage: mortgage lenders have regained a strong appetite for business and fierce competition within the market has resulted in a record number of mortgage products. Rates are also at an all-time low, and with the Bank Rate not expected to increase until autumn 2015, demand for house purchase is likely to remain strong. While some problems – such as a lack of skilled workers and building materials – have no quick fix, the construction industry must remain dedicated to building new homes if we are to meet consumers’ housing needs.”