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LSL New Build Index October 2015
The market indicator for New Builds
• Average New Build price rise remains static, at 6.5%, to the end of September 2015. • Greater London’s price growth peaked in November 2014 – Data suggests 14% growth in September 2014, compared to only 10% in September 2015. • East Anglia and The South East experience the strongest increases and therefore predicting they will overtake Greater London, before the end of 2015. There is still immense pressure for the government to support developers, to achieve and deliver the target of One million New Homes before 2020. A lack of skills continues to be a major, contributing, factor to this. LSL Land & New Homes looks at the current prices of new build properties, and questions if the government plans are realistic. Shaun Peart, managing director of LSL Land & New Homes (www.lsllandandnewhomes.co.uk), explains: “The year on year price change to end September 2015 has
But when the data is examined more closely, an interesting
remained relatively static again this month at 6.5%. Whilst
emerging trend can be seen. The New Build Price Index tracks
most commentators seem to agree on a relatively flat market,
year on year changes and so compares the average price in
the most interesting trends are perhaps those noted by e.g.
each region in the year to September 2015 with the Year to
the RICS and Land Registry which point to excess demand,
September 2014. The year on year price growth in Greater
relative to a static or falling supply of property for sale. There
London, as measured by this index, peaked in November
seems to be universal agreement that too few houses are
2014 and has been gently falling since that time. In the
being built and that there is clear political backing for an
year to September 2014 it stood at 14% and in the year to
increase in the overall volume of new build. However a recent
September 2015 it stands at 10%, a fall in the year on year
survey pointed to skill shortages being a very important
growth rate of 4%. Over the same period the figures for
constraining factor in the supply of housing and there
East Anglia and the South East have risen by roughly 4% to
doesn’t seem to be a short term solution to this issue.
now stand at a little over 8% (a doubling over the year).
Data sources: LSL New Build House Price Index | ONS, EARN05 – Average weekly gross earnings of full time employees, by region.