Lack of supply hitting housing affordability

Chris Papadopoullos
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HOUSING is still becoming more unaffordable, as demand continues to outstrip supply.

The number of houses built in January declined compared with January last year, according to figures released today by the Nat­ional House Building Council (NHBC).

January saw the completion of 11,390 homes, compared to 11,645 in January 2014.

However, for the period November to January, house building was up 13 per cent on the same period one year ago.

In London, 6,872 houses were completed in that period – an 18 per cent gain on the same time a year before.

“We anticipate an important couple of months in the run-up to the General Election with housing likely to be at the forefront of political debate in an effort to increase overall levels of new homes that the country urgently requires,” said NHBC chief Mike Quinton.

The deposits required by first-time buyers to secure house purchases rose by 15 per cent on the year in January, data released today estate agents Your Move and Reeds Rains.

First-time buyers looking to live in London need an average deposit of £73,711, 10 times the average deposit required in Wales.

London rents are up seven per cent annually to an average of £1,494 per month, figures released by agents Barnard Marcus show today.

“In London, the demand for rental properties has shot up in the last year, by 47 per cent annually. Meanwhile, supply has fallen seven per cent, resulting in almost eight tenants chasing every property,” Stephen Nation, head of lettings for Barnard Marcus.