Current Property Market

The Property Market

More than 104,000 households were in temporary accommodation at the end of March. The highest figure since records began in 1998 and 10% higher than the March 2022 figure. Competition for homes in the private rented sector continues to increase too, with figures from Rightmove showing there were an average of 20 enquiries per rental property in May 2023, up from an average of six in 2019.

With numbers like these few would dispute the need for more homes. Only this week the government has re-asserted its commitment to building one million new homes over the course of this parliament. Yet figures from the NHBC show new homes registrations last quarter were down 42% on a busy Q2 2022 and -7% lower than the Q2 average over the last decade.

In the run up to the general election the challenge for the current administration is to deliver more homes while not alienating voters in Tory strongholds. Building on the greenbelt being one of the areas where political parties seem most divided.

The debate over whether we should be utilising greenbelt land for development is one for another day, but government has made it clear that the focus should be on developing in urban areas or designated city fringe locations.

In a speech by Housing and Levelling Up Secretary Michael Gove, it was announced that the conversion of shops, agricultural buildings, and disused warehouses will be made easier, with greater emphasis placed on redeveloping urban sites rather than building on the greenbelt.

Any plans to encourage development and streamline the planning process should be encouraged, however it is unlikely that these announcements alone will have a significant impact on overall delivery.

Analysis of government net additions data, the latest being for the 2021/2022 financial year, suggests less than 10% of the 232,820 net additional dwellings in England last year were delivered through change of use. Of the 10,300 homes converted through permitted development rights 81% were office to residential conversions with just 591 agricultural to residential and 271 formerly light industrial. Our DHL Living team discuss the challenges of office to residential conversion in a recent report.

Urban areas already appear to be pulling their weight. Only 25% of additional dwellings delivered across England last year were in areas classified as rural locations, suggesting urban areas are already delivering the bulk of new supply.