Build more houses, and house prices and rents will fall, it is claimed. The reality is a little more complicated than that, an increase or decrease in building actually has a negligible impact on house prices.
According to Department for Communities and Local Government (DCLG) figures, there were 189,650 dwellings completed in England in the financial year ending March 2016, up 11% on the year before, hence it is obvious they are being built.
Gavin Barwell said: “We’ve got the country building again with the highest number of housing starts for 9 years. However, we know there’s more to be done to build more homes in the places that people want to live. Our housing white paper sets out an ambitious set of proposals to deliver more land, speed up build-out, diversify the housing market, and support people who need help now.”
Building more homes is an absolute priority, which is why the government plans to invest £25 billion in housing over the Spending Review.
£1.4 billion of funding has been released for Affordable Housing, and restrictions on funding have been relaxed so providers can build a range of homes including for Affordable Rent and Rent to Buy which help people save for a deposit before they buy.
It’s an encouraging sign but as Mr Barwell stated there is more to be done, that is one point that can’t be contested!
Islington and Manchester saw the greatest increase in house-building starts, up 296% and 323% respectively