According to data released on Thursday, housebuilding in England increased in the second quarter 2023. Builders accelerated projects to avoid stricter energy performance standards.
Between April 1 and 30 June, the UK housing department reported that the number of homes in England where construction work was underway had risen to 67.600. This is an increase of 75% from the previous quarter, and a 33% increase compared to the same period of 2022.
On June 15, new building standards came into force in England relating to energy efficiency and charging points for electric vehicles. However, the changes did not apply to construction work which began prior to that date. The government said the “unusually high peak in starts” was because “many housebuilders may have chosen to bring forward the start of project works to avoid the costs of complying with these new standards”.
House of Commons Library warns that despite the increased housing supply, the increase will not be enough to meet the demand for housing in England.
James Barton of Knight Frank’s City & East Land said that the surge in housing demand would not “ease housing shortages” due to the “prolific housing undersupply for many years”.
He added that this creates barriers for those who are just starting out in home ownership. This includes first-time buyers as well as young people moving to their second home.
Myron Jobon, an analyst with investment platform Interactive Investor said that the data raised concerns about the “quality of the new buildings”.
He added that “there are still many people who live in inadequate housing, and affordability can make it difficult for them to get the housing they require.”
The data released on Thursday also revealed that between April and the end of June, the number of homes completed fell by 12 percent annually to 39.600. This is 18 percent lower than its recent high in March 2021.
All the major political parties in England have promised to increase housing supply as part of their election manifestos for 2019.
The House of Lords rejected earlier this month the government plan to erode rules on water contamination to allow more housebuilding.
In May, Labour officials announced that they were drafting plans to force landowners in England to sell their plots at a fraction of the market value in order to reduce home building costs.
The housing shortage relative to the demand for homes has kept prices high, even though mortgage costs have increased sharply in the last year. This also contributed to UK rental prices rising at the fastest rate ever recorded in the year up to August.