According to Taylor Wimpey, one of the largest builders of new build properties, the future is uncertain in relation to new build construction.
They flagged up concerns yesterday in relation to planning issues relating to a shortage of land with planning consent and anticipated changes to planning legislation. Click here to read the full report.
The new build market has struggled to cope during the recession and many builders were forced to stop building in the middle of projects due to lack of funding. However, things have gradually improved and Taylor Wimpey reports that across its UK housebuilding business, they have now sold 83 per cent of their full-year target. In a statement to investors, Taylor Wimpey said: “With ongoing political and economic uncertainty, we continue to run the business on a cautious basis, with selective land investment and an ongoing focus on costs and cash. “
Taylor Wimpey also commented that it was “concerned” over the coalition government’s looming spending review, which might see cuts on housing initiatives and social housing grants. In 2009, one-sixth of their 10, 189 legal completions were affordable housing.
There is a shortage of homes in the UK so the creation of new properties, in whatever form, must continue. With the announcement in the budget of deep cuts across the board it is hard to see how the new build market and social housing sector will not be affected. At present, it remains uncertain as to what degree they will be affected whilst we wait for changes to legislation and for further news on cuts.