Schemes valued at up to £100 million – fell by 11% last year but are forecast by Glenigan to firm up by 2% this year before pushing on to grow by 14% in 2025.
Glenigan economics director Allan Wilén says: “Housebuilders have a robust pipeline of previously approved developments that can be readily brought forward as market conditions improve.
“Additionally, improving affordability due to rising wages and potentially lower mortgage rates are expected to boost consumer confidence and support a progressive recovery in private housing project starts over the next three years. This will allow housebuilders to respond to improved consumer confidence and a strengthening in property transactions by opening new sites and increasing construction activity.”
Bulging pipeline.
Glenigan’s construction research has identified nearly 11,200 private residential developments with planning permission and with work due to start over the next 12 months.
The region with the largest number of approved private housing schemes due to start in the forthcoming year is the Southeast with 1,985 approved developments. David Wilson now has permission to build 289 flats at Newbury Racecourse, while Bloor has approval to build another 99 units at its Brize Meadows development in Oxfordshire.
In the neighbouring Southwest, there are 1,270 approved schemes including the £120 million regeneration of Haven Banks in Exeter to include 184 houses and 239 flats. Glenigan’s industry information suggests work could begin next March.
With a strong pipeline of approved developments across the UK and a political drive to build more homes, the private housing sector is set for more buoyant times.
