Government Publishes Quarterly Report on Housing Supply

The Government’s recently released quarterly report sheds light on the housing landscape in England for the period of July to September 2023. Focused on new building regulatory standards and housing supply trends, the report offers a comprehensive update up to September 30th, 2023.

Key Statistics
In Q3 2023, building work commenced on 21,300 dwellings, marking a substantial 68% decrease from the previous quarter and a 52% decrease from the same quarter the previous year. Dwellings completed during this period totalled 39,990, showing a 1% increase from the previous quarter but a 5% decrease from the same quarter the previous year.

Housing Supply Indicators
The report reveals that in 2022-23, 234,400 net additional dwellings were recorded, similar to the figures from the previous year. New dwelling Energy Performance Certificates (EPCs) lodged in Q3 2023 numbered 58,810, a 6% decrease compared to the same quarter the previous year. Additionally, the net increase in domestic properties with a council tax band was 239,380 in 2022-23, reflecting a 3% increase from the previous year.

Regional Figures
Starts and completions varied across regions, with six of nine regions experiencing a decrease in starts and seven in completions. Notably, the South West (-16%) and the South East (-15%) had the largest percentage decreases in starts, while the North West (-12%) recorded the most significant decrease in completions. The East Midlands led in annual starts per 1,000 dwellings, and the East of England had the highest rates of annual completions per 1,000 dwellings.

New Build Completions Final Tenure Estimate (2022-23)
Private Enterprise delivered 75% of total new build dwellings, Housing Associations 22%, and Local Authorities 3%. An estimated 48% of completions delivered through Housing Associations or Local Authorities were under Section 106 (nil grant) agreements.

Planning Applications (Year to September 2023)
Planning permissions granted for 245,000 homes represented a 15% decrease from the previous year (290,000 homes). The figures for housing units granted planning permission mirrored trends in building control reported starts and completions.

Transition Period Ends
The report emphasised that the 15th of June 2023 marked the end of the transition period into new building regulatory standards in England concerning energy performance and electric vehicle charging points. Caution is advised in interpreting Q3 data due to the transitional effects of these standards. Builders may have initiated projects earlier to avoid compliance costs, leading to an unusually high peak in starts in Q2 2023 and a subsequent low trough in Q3 2023. As the industry adapts to the new standards, policymakers, builders, and stakeholders must consider these transitional effects when assessing the true trajectory of the housing market in the coming quarters. The report provides a crucial insight into the evolving dynamics of housing supply, offering valuable information for informed decision-making in the sector.