The 25% increase in net housing supply between 2013-14 and 2014-15 was primarily the result of a 19% increase in new build completions (24,730 more new build completions than the previous year) and a 65% increase in dwellings added through change of use (8,130 more dwellings added as ‘net change of use’ than the previous year).
There was an 11% increase in dwellings added through conversions (470 more net conversions than the previous year), and the number of demolitions decreased by 12% (1,450 fewer dwellings demolished).
Brian Murphy, Head of Lending at Mortgage Advice Bureau, commented:
“Today’s housing supply figures will invoke a collective sigh of relief in the housing market. Net supply of homes finally picked up in 2013-14 after five consecutive years of dwindling figures, yet 2014-15 has been an even stronger year, with the supply of homes up by a quarter annually. This has been primarily driven by over 155,000 new build housing completions: by far the highest figure seen in the past six years. With the worst of the recession behind us and the UK economy showing steady growth, the number of new build completions has increased by almost a third since the dangerous lows of 2010-11. Robust growth in housing supply is very welcome as consumer demand – buoyed by record low mortgage rates – shows no signs of abating.
“However, the market is by no means out of the danger zone just yet. The number of housing completions is still far below the amount needed – net supply of dwellings remains 24% below the levels seen in 2007-8 – and we are seeing too many homebuyers chasing a single property. Across the UK there is an ever-growing gap between supply and demand, threatening to drive up house prices and derail affordability. The government must act on its promise to increase housing supply, not only through additional policies like the Starter Homes Scheme, but also by ensuring net supply of housing continues to grow at a strong rate.”
