The number of new homes being built in the UK has risen by 10 per cent since 2013; presenting landlords with more options to buy to let
According to figures from the Department of Communities and Local Government, new builds in the UK are at their highest annual total since 2007.
The number of starts on new homes reached 137,010 between 2013 and 2014 and the amount in London was the highest seen since 2005-2006.
Permission for 240,000 homes was granted between October 2013 and October 2014 and since the end of 2009 a total of 700,000 new homes have been built across the UK.
More than 200,000 of these have come about since the Government launched its Help to Buy scheme.
Back on track
Housing Minister Brandon Lewis said that the housing industry is “back on its legs” following the announcement.
He went on to say that maintaining interest rates at a record low made it a prime time to take out a mortgage – something which can also benefit buy to let landlords.
The Department of Communities and Local Government also looked back to 2008 when the economic crash devastated the house building industry and caused building levels to reduce to their lowest level since the 1920s.
Since then, an increased number of people have managed to get back onto the property ladder with the help of initiatives and low interest rates with high demand for properties prompting developers to build more homes.
Lewis believes reforms to the planning system which surrounds housing has put power back into the hands of local people, dramatically increasing support for local house building over the last six years.
Almost 217,000 affordable homes have come onto the market since 2010 with an investment of £19.5 billion put into affordable house building from public and private sources.
A £38 billion investment is also planned to construct 275,000 affordable homes between 2015 and 2020 as the Housing Minister says he’ll try and keep interest rates low and mortgages affordable.
By expanding the home building sector in this way, a more plentiful supply of quality properties could become available to buy to let landlords – providing many more lucrative opportunities for them to grow their portfolios.