The number of new build housing developments coming to market is at its lowest level since January 2017, according to Rightmove.
Its analysis has tracked the number of housing developments listed on Rightmove for sale for more than ten years and excludes retirement developments.
These figures come despite the government’s target of delivering 1.5 million new homes over the course of this parliament.
GOVERNMENT NOT ON TRACK
Rightmove said the latest data shows the government is not on track to meet its target of delivering 1.5 million homes over the course of this parliament.
It said that despite the number of homes available for sale across both new and existing properties being up 85% compared to four years ago, there are still not enough affordable homes in the right places.
It is calling for the removal of Stamp Duty for first-time buyers on both new-build and resale properties in the Autumn Budget.
It also wants the government to increase investment in affordable housing, giving developers greater certainty while helping to deliver much-needed affordable homes.
It said viability remains a major challenge for developers, with building costs, affordable housing requirements, local infrastructure obligations and higher interest rates making development increasingly difficult.
It has also called for careful consideration of targeted demand-side support measures for first-time buyers to make it easier for them to get onto the property ladder.
MORE HELP NEEDED
Steve Mariner, group sales and marketing director at Barratt Redrow, said: “Government has made good progress reforming the planning system, helping unlock more land for development.
“However, increasing regulatory costs are holding new homes back, while low customer confidence, higher borrowing costs and wider economic uncertainty are all making it harder for first-time buyers to get onto the housing ladder.
“A new scheme to support first-time buyers, with developers contributing alongside government, would help people achieve their dream of home ownership, get the market moving and see more homes built and more economic growth.
“For the first time in decades there is no government support to help people in England buy their first home, right when it’s needed most.”
Alex Slater, director of new homes at Rightmove, added: “First-time buyers underpin the whole housing market, but affordability and getting that first foot on the ladder is becoming more difficult.
“We need a set of reforms that go further, faster and work together, from stamp duty changes to more investment in affordable housing, to give this group a better chance of getting onto the ladder and keeping the market moving.”
