The government claims the number of new homes built in England for the three months to June this year is 6% higher.
On an annual basis 110,530 homes were started over the year to June 2013 which is a 7% rise on the year before.
This figure is below the recent peak of 183,000 homes built reached in March 2006 and is significantly lower than the 250,000 homes needed to meet demand.
House building companies have seen a pickup in demand after government initiatives to boost the housing market such as the Help to Buy Scheme introducing cheap loans to first time buyers.
Shortage of homes
The latest figures from the Department for Communities and Local Government show that seasonally adjusted housing starts are 73% higher than the lows reached in March 2009 but remain 40% below the 2007 peak.
Communities minister Brandon Lewis said there were 29,510 house starts in the second quarter of 2013 although the charity Shelter that the number of houses but were half the amount to meet demand.
Higher property values coupled with a shortage of suitable properties for home movers has resulted in more remortgage buyers are remaining in their existing home and saving for a bigger deposit.
Shelter’s director of communications Kay Boycott has said unless more houses are build house prices and rents will rise sharply.
Help to Buy Scheme
Supply of new housing is needed even more as the governments Help to Buy Scheme picks up more demand from first time buyers.
The higher demand for affordable housing is allowing private house builders to increase their prices and their profit margins.
About 10,000 homebuyers have allied to the Help to Buy Scheme which only requires a 5% deposit for a mortgage with the government providing a further 15% of the capital.
First time buyers can receive help from family members as the equity release buyer can access cash using a lifetime mortgage and gift the deposit to children and grandchildren.
What are your next steps?
Call our LCM mortgage brokers for advice if you are a first time buyer, want to remortgage your existing home for the best mortgage deal, moving home or are a buy-to-let investor.
Learn more by using the property value tracker chart, mortgage cost calculator and equity release mortgage calculator. Start with a free mortgage quote or call us and we can take your details.
For equity release buyers our London City Mortgage advisers can recommend lifetime mortgages allowing you to receive cash from your property to buy a more expensive home or even help your children start or expand a business.
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