Prime Minister Andy Burnham has announced that accelerating the construction of council housing will be a key government priority. This move aims to support the broader housing market by providing a stable income stream for builders and preserving skilled jobs amid a sharp decline in private home construction.
Analysis from property consultancy Savills indicates that new home completions in England between 2024/25 and 2029/30 are projected to be just over half the government’s annual target of 300,000 units. Additionally, new planning consents have fallen by 39% over the past three years. The slowdown is attributed to rising material costs and economic uncertainties linked to ongoing conflicts, which have prompted developers to reduce new-build starts by 50% this spring. This marks the most significant drop since the COVID-19 pandemic halted construction activity in 2020.
Developers often limit output to maintain stable prices amid falling sales, as they face high land costs and prolonged planning processes. However, potential homebuyers currently benefit from increased incentives designed to move unsold properties. These offers range from deposit contributions, typically between 5% and 10%, to stamp duty support and part exchange schemes.
One example is Lovell Homes’ Helping Hands initiative, which helps sellers move more quickly by coordinating with local estate agents to value and sell existing homes. The program covers agent fees and actively supports the sales process until completion.
Sandra Witherden, a 64-year-old former civil servant, utilized this initiative when downsizing to a new bungalow at Lovell’s Sandcastles development in Scarborough, North Yorkshire. Planning her move in 2023, Sandra purchased off-plan, allowing her to customize features such as kitchen units and flooring. She said the initiative enabled a swift transition once construction finished.
Sandra appreciates living in a new-build property, highlighting its low maintenance, energy efficiency, and inclusion of solar panels. She described the home as “a lovely space that I can make all my own,” emphasizing the straightforward layout and ease of upkeep.
The Sandcastles development is located on the outskirts of Scarborough and is tailored exclusively for residents aged 55 and older. It offers freehold two- and three-bedroom bungalows and small houses with no management fees. The site is served by regular bus routes, and there are plans to build a nursing home nearby. Prices for these homes range from £235,000 to £399,950.