It looks as though the UK’s supply of new housing is set to fall to its lowest rate since World War II. This is a reaction to interest rates and inflation levels, andthe cost of energy bills set to rise even further in April. There are various contributing factors, one of which is the new regulations for new housing projects.
UK housing supply
A study by the Home Builders Federation suggests that the number of new houses being built is set to fall to below 120,000 homes per year. This number is less than half of the government’s target of 300,000.
The Home Builders Federation has warned that this could lead to a shortfall of new homes in England. They predict that this will cost the industry around 400,000 jobs, with 4000 of those being apprentices. The HBF also say there will be over £20 billion less economic activity happening and over £3 billion less investment in affordable housing.
By having a shortfall of houses, it will be harder than ever to become a homeowner and will exacerbate the housing crisis that already exists.
New regulations impacting housing projects
The new building regulations, which came into effect in June 2022, are a great push towards making the UK a greener place to live.
One of the new initiatives is that all newly built residence must have their carbon emissions reduced by 30% as a step towards homes having net-zero energy use by 2050.
Another change is around fire safety. The ban on combustible materials used when building the walls of buildings has been enhanced, making buildings safer in the event of a fire.
As you will no longer be able to buy a new diesel or petrol car beyond 2030, new builds are now required to have electric car charging points. Previously these features were an addition to the property, whereas under the new regulations it is considered essential.
If you are looking to invest in a newly built property, all the various rules and regulations can be a bit overwhelming. Hiring a building conveying solicitor will ensure that the home you are looking to purchase has everything in order.
What does the future hold for the UK’s housing market?
With the current cost of living crisis, the outlook for the housing market looks different from previous years.
People who have a mortgage are set to see more of their monthly earnings being swallowed up by these payments which will affect the quality of their lifestyle. In line with this, house prices are looking likely to fall in the coming year as homeowners that are looking to sell will have to lower their asking prices to make it an enticing deal for people.