15% increase in new homes
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A 15% increase in new home building, but the UK still isn’t building enough homes.
Back in November 2017, the UK government announced that 217,350 new homes had been built in England during 2016-2017, an impressive 15% increase on the number built in 2015- 2016. Of those 217,350 new homes, 183,570 were new build homes and 37,190 were created through change of use from non-domestic to residential use. For example, by turning an old disused factory or shops into apartments.
But, although that figure is a vast improvement on the previous year, it’s worth noting that around 6,000 less homes were built since the start of the 2007/8 financial crisis.
Huge house price growth over the last decade
By not building enough new homes, there’s also a weak supply, so house prices tend to be rising rather than falling. So, despite that financial crisis, house prices have steadily risen, which is great news for homeowners and developers, but not so great for those wanting to get a leg on the property ladder or move up it.
To help ease the problem, the Prime Minister announced a £2 billion in extra funding for affordable housing, taking up to a total of over £9 billion. There’s also £3 billion in the Home Building Fund, with £1.8 billion already committed to building over 100,000 new homes.
Yet, some feel ‘stuck’ because they want to buy a bigger home, but they just can’t afford to move to a bigger place. But for many, there is an option worth considering.
Remortgages used to pay for more living space
The cost of selling a home is significant and there’s usually a leap in house prices when you buy a property with an extra bedroom. That’s why so many people are interested in remortgaging.
By remortgaging, a homeowner can potentially get a better deal on their existing mortgage, but they can also take the opportunity to raise cash by releasing equity in their home. And, they can of course use this to pay for home improvements, such as an extension or conversion to give them extra living space.