New build buyer demand plummets to lowest levels in six years

10 September 2020 | General

Surprisingly demand for new homes has reached its lowest level since 2014, according to small to medium-sized (SME) house builders.

The Federation of Master Builders (FMB) House Builders’ Survey 2020 found that 37% of are worried about the impact of restricted mortgage availability and what this will mean for prospective house hunters.

Brian Berry, chief executive of the FMB, said: “SME house builders are facing the dual challenge of weakening demand, and increasing constraints on their output.

“Taken in the context of Brexit uncertainty and the ongoing economic impact of the coronavirus, these conditions are hampering recovery in the housing market.”

According to housebuilders the planning system was the biggest constraint building more homes, with almost half (48%) citing this issue.

Meanwhile 46% said they had concerns over a ‘lack of available and viable land’ to build on.

Berry added: “The government needs to prioritise supporting recovery in the SME house building sector.

“SME builders operate in every community in England and support the Government’s levelling-up agenda.

“They build high-quality, sustainable and beautiful homes in places where people want to live.

“Local builders also create local employment and training opportunities, as SMEs train almost three-quarters (71%) of the industry’s apprentices.

“The FMB is keen to work with the government and the industry to reverse the decline in the SME house building sector and create a more diversified and resilient industry.”

This post has originally been featured in Property Wire.