New developments push up prices

New developments push up prices




.

Areas with higher rates of new development consistently record higher house price growth, according to new research from smartnewhomes, showing how housebuilding activity can boost the prosperity of a local community.

Using data from the department for Communities and Local Government, smartnewhomes compared housebuilding levels with average house price growth over the last 1, 3 and 5 years, across all nine English regions. In all cases there was a strong positive correlation between the number of new homes built in a region and the rate of house price growth.

On average over the last year, each region saw house price growth of 0.63% for every 1,000 new homes completed in that area. Over the last three years, the figure was 0.16% and the rate was 0.23% over the last five years.

The research shows that housebuilding activity makes a significant contribution to the prosperity of an area, and that NIMBY fears over the financial impact of new
homes are unfounded. Developers look to build wherever there is likely to be demand, and their investment typically attracts other businesses and residents to enter the area in turn, boosting the local economy.

Steve Lees, Director at smartnewhomes, said:“House builders would not apply for permission to build new homes in an area if there was not a demand from homebuyers. By responding to this demand, be it from first-time buyers who provide impetus from the bottom rung of the property ladder or from families who might otherwise move away, housebuilding makes a significant and lasting contribution to building prosperous local economies.

“I would urge local authorities and communities to recognise the importance of the housebuilding sector in creating thriving communities, and to work to facilitate
development for the benefit of all their local residents.”

 

 

Leave a comment