More New Homes Being Built To Stimulate Housing Market

Whether it’s online, on TV or in the papers, the property market seems to be headline news every week. It’s not surprising really. The UK is still struggling to get back on its feet, post recession, and the health of the property market is used as one of the main indicators to the health of the British economy as a whole; hence people are watching it closely, from politicians and house builders to homeowners and potential buyers.

So unless you have been hiding in a cave since 2007, you’ll know the property market is in dire straits. Prices are stagnating and in some places falling; mortgage lending is drying up and house building is down to its lowest level since 1924. This means first-time buyers and people hoping to get into a council house are feeling rather glum. The private rental market is feeling the pinch too; according to one nationwide property agent there are 5.5 potential tenants after every property.

But there could be good news on the horizon for once. The construction sector has helped power us out of recession and as a result, for the first time since 2007, there has been an increase in the number of new homes being built.

In the second quarter of 2010, according to the Communities and Local Government group, the number of new homes being started increased to 28,590, a healthy rise of 13%. What’s even more encouraging for low-income households is that of this increase, 17% were being built by registered social landlords.

But with council house waiting lists growing and more and more first-time buyers being priced out of the private sector more needs to be done. Finally the government is taking heed of the warnings. It hopes to address this housing shortage with its New Homes Bonus scheme. Under this initiative, the government will match the council tax raised on each new house for six years to encourage councils to approve more new build homes. The extra money gleaned from the scheme could be used to counteract the negative side affects of building more property and could fund developments such as swimming pools or improve town centres.

Many private sector property building companies are already integrating affordable housing into their building projects such as Kier Homes’ developments in Lincolnshire and Peterborough. But this new government initiative should do more to improve the lot of first-time buyers and low-income families wanting to break free from renting.

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About the author

Steven Hamilton, provides advice and tips for those looking to buy new homes in the UK. If you are looking to purchase a new home, then hopefully my advice can help!

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