New build housing developments coming to UK market near decade-low

(Alliance News) - The number of new build developments coming to the UK market is the lowest since early 2017, data published by Rightmove PLC showed on Friday.

The average two-year fixed mortgage rate stands at 4.92%, up from 3.53% four years ago, the online property portal said.

The number of new build housing developments coming to the market is at its lowest since January 2017, the company said, with higher mortgage rates continuing to pose a challenge for housing developers and estate agents.

Meanwhile, the number of available homes for sale across new and existing homes was 85% higher than four years ago. Rightmove cautioned: "However, there are still not enough affordable homes in the right places."

Rightmove said the UK government was not on track to meet its own target of building 1.5 million new homes over the course of the current parliament, which will be dissolved by no later than mid-August 2029 for the next general election.

Rightmove recommended that the UK government remove stamp duty for first-time buyers across both new build and resale properties, and said the government needed "to go further with investment towards affordable housing provision," which it said would give developers more certainty.

Further, Rightmove said the government needed to carefully consider targeted demand-side support measures for first-time buyers to make it easier for them to get on the housing ladder.

Alex Slater, Rightmove's director of New Homes, said: "First-time buyers underpin the whole housing market, but affordability and getting that first foot on the ladder is becoming more difficult.

"We need a set of reforms that go further, faster and work together, from stamp duty changes to more investment in affordable housing, to give this group a better chance of getting onto the ladder and keeping the market moving."

Steve Mariner, group sales & marketing director at Barratt Redrow, said: "Government has made good progress reforming the planning system, helping unlock more land for development. However, increasing regulatory costs are holding new homes back, while low customer confidence, higher borrowing costs and wider economic uncertainty are all making it harder for first-time buyers to get onto the housing ladder.

"A new scheme to support first-time buyers, with developers contributing alongside government, would help people achieve their dream of homeownership, get the market moving and see more homes built and more economic growth. For the first time in decades there is no government support to help people in England buy their first home, right when it's needed most."

Colleen Babcock, Rightmove's property expert, said: "Despite the historically high number of available homes for sale, there is still a long-term shortage of affordable homes in the right place. We need more homes to support people at every stage of the moving journey, from first-time buyers to downsizers."

By Tom Budszus, Alliance News slot editor

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