Demand for Newly Built Homes Falls to Historic Low

Difficulty obtaining mortgages today is one of the main causes.

Surprisingly, the demand for newly built homes has reached its lowest level since 2014, according to small and medium-sized home builders (SMEs).

The 2020 Survey of Home Builders from the Federation of Master Builders (FMB) found that 37% are concerned about the impact of restricted availability of mortgages and what this will mean for potential home hunters.

“The situation can get worse.”

Brian Berry, CEO of FMB, said: “SME home builders face the dual challenge of weakening demand and increasing constraints on their production.”

“Taken in the context of the uncertainty of Brexit and the ongoing economic impact of the coronavirus, these conditions are hampering the recovery in the housing market.”

According to home builders, the planning system was the biggest constraint to building more homes, with nearly half (48%) citing this problem.

Meanwhile, 46% said they were concerned about the “lack of available and viable land” to build on.

Berry added: “The government should prioritize supporting the recovery in the SME housing construction sector.”

“SME builders operate in every community in England and support the Government’s leveling agenda.”

“They build beautiful, sustainable, high-quality houses in places where people want to live.”

“Local builders also create local job and training opportunities, as SMEs train almost three-quarters (71%) of apprentices in the industry.”

“The WBF stands ready to work with government and industry to reverse the decline in the SME home construction sector and create a more diversified and resilient industry.”

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