Housebuilding drop may help rental market
The number of new homes built is set to go on falling, it has been predicted.Construction firms will build increasingly less homes as the residential buying markets continues to be hit by the credit crunch, the House Builders Association has forecast, with the number of new residences being completed numbering only 110,000 this year and potentially dipping to 80,000 in 2009, numbers comparable with the 1930s when Britain was suffering from the great depression.
Spokesman Roger Humber commented: “House builders are not going to be starting new sites, they”re going to be laying people off, they may even be mothballing sites.”
The lack of new homes may be to the advantage of those with Buy to Let Mortgages, as those looking to get on the housing ladder may have less choice and could opt to rent instead while they wait for the market to pick up again.
Last week the Financial Times blogger Jim Pickard said government targets for over 200,000 new homes to be built each year were looking “increasingly hallucinogenic”.
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