The number of new homes being built in England last year reached it’s highest level since March 2007, according to a new report from the Department for Communities and Local Government (DCLG).
The figures show 112,590 new homes started being built in the last year to December, an increase of 23% from the previous year. Although total completions were down 5% to 109,370 during the same period.
The regions with the highest new home starts were along “Cornwall up to Worcestershire” says the report which also points out parts of London also had strong figures.
Who’s Building New Homes?
In the year to December, private enterprise started to build 98,330 new homes which is a 24% increase from the same period a year before.
Housing Associations built 23,210 new homes which, which also equated to a 24% rise from December 2012, while local authorities built 1,050 homes.
One of the reasons for the rise in the new homes being built and the recent improvement within the housing market can be attributed to Help to Buy.
Under the Help to Buy scheme a borrower can get government assistance to buy a new property or lenders can have a certain amount of the loan protected.
People who were previously being rejected for a mortgage are now able to buy a new home because the mortgage lender is taking less risk.
The only downside with the Help to Buy scheme is some mortgage experts have concerns it could lead to a housing bubble which could burst.
Applying for Help to Buy Scheme
If you wish to apply for the equity loan scheme one of our mortgage advisers will be happy to help with the process and walk you through it.
You don’t need to apply directly for the mortgage guarantee scheme as it’s for lenders to arrange, however lenders will offer special help to buy mortgages.