Affordable new builds 'to become more scarce'

The supply of new build homes is falling and will lead to a scarcity of affordable new accommodation this year, it has been claimed.

CB Richard Ellis has predicted that the ten per cent drop in such building reported by the government will lead to major problems for those trying to get on the housing ladder, with home construction likely to continue to decline.

Jennet Siebrits, head of residential research, said that weaker house price growth means that the value of homes is not keeping up with rises in the price of land and other costs, which is an "increasingly stringent barrier to building".

Those able to obtain land to build their own homes may decide this is a better option than hoping to be able to buy a new-build home.

Responding to last week's building shortfall news Steve Nickell, chairman of the government-aided National Housing and Planning Advice Unit, told the Daily Telegraph: "Vis-a-vis the longer-term house-building targets, this is disappointing."


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