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Will More People Renovate Homes In Wake Of House Building Deficit?

Jul 20 2016

As many as 1.2 million homes have failed to be built, which means the UK is falling well below its target for house building. 

While this will come as bad news to homebuyers who want to move into a modern, newly built home, it might encourage others to renovate a property instead.

Indeed, they could install a new kitchen and bathroom, get an extension, make their kitchen-dining area open plan and invest in conservatories in Bristol. While home renovations are a big undertaking, homeowners could end up with the property of their dreams, being able to design each room exactly the way they want. 

However, the findings by Yorkshire Building Society will disappoint others, revealing that the UK has failed to achieve the recommendations set out by the Barker Review in 2004, which suggested 270,000 properties should be built per year.

The government has also fallen short of its pledge made only last year to construct one million properties over five years. In 2015, it had already dropped 29 per cent below this target, building just 142,890 houses.

With these figures in mind, property buyers might instead consider purchasing an older home and renovating it to modern standards.

Updating your property could become more popular, as figures from Clydesdale and Yorkshire Banks show one-fifth of homeowners are redecorating their homes instead of moving up the housing ladder this year. 

However, chief economist at Yorkshire Building Society Andrew McPhillips noted: “Lack of housing supply has caused prices to rise well beyond wage-growth, which has increased competition for properties and priced many people out of the market.”

Therefore, the house-building deficit is also affecting those who want to purchase already existing properties, particularly first-time buyers who will not see their own asset increase in value during this time like homeowners will.


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