Government failing to meet its targets on affordable new-builds

Wednesday 14th December 2016

Just 4% of the affordable homes purchased in 2016 were new-build properties. This is according to research carried out by conveyancing firm My Home Move.
Affordable housing is counted as homes priced under £125,000, and only 4% of the homes bought in the last year in this category were new-builds, very much suggesting that the government is failing to meet its own housing targets. 
Rather than new-builds, the majority of the homes bought below the stamp duty threshold were traditional flats and terraced properties. 
As expected, Northern counties such as Durham, South Yorkshire and Merseyside had the highest number of property transactions for under £125,000, while London, Surrey and Hertfordshire comfortably had the least – with an average of just 1% in these locations. 
“During last month’s Autumn Statement the government renewed its pledge to build more homes across the UK, with a particular emphasis on 40,000 additional ‘affordable’ homes,” Doug Crawford, CEO of My Home Move, said. 
“Through our own research, we know that 2 in 3 people believe affordable housing should cost less than £120,000. This begs the question – is the government really capable of delivering on its promise, as only 4% of ‘affordable’ homes purchased this year were classified as new builds.”
He added: “Looking at the numbers, the largest proportion of ‘affordable’ new homes have been built across Yorkshire, Greater Manchester and the West Midlands; however for those struggling to get on the property ladder in Berkshire, Herefordshire, Surrey and London – the picture is fairly grim.” 
“Across the four regions only 1,544 properties were sold for less than £125,000, of which barely a handful, just 57, were newly built.” 

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