DEVELOPERS are set to increase their output to 167,000 new homes a year by 2018, supported by a steep rise in output from the public sector, according to new forecasts from international real estate adviser Savills. This is still short of the 240,000 a year required to meet need in England, but a 55 per cent rise on the 108,000 total for 2013.
As the housing recovery takes root and spreads to markets beyond London, the firm expects house building rates to gain momentum in 2014, with housing associations and, to a lesser extent, local authorities playing an increasing role in delivery.
The private sector is forecast to increase production by eight per cent a year in the five years to March 2018. This would result in an average output from private housebuilders of 107,000 new homes a year over the next five years, according to Savills research.
“Historically, we have seen periods of similar growth in the Eighties and noughties but there is no precedent for faster growth over a sustained period,” says Susan Emmett, Savills director of residential research.
“Our forecast is therefore the best case scenario for private sector expansion and very much dependent on finance easing for SMEs.