2013 Boom in Residential Development Projects

More good signs in the housing sector as the value of private residential property development projects is showing a double digit year on year increase. The number of projects starting on site is up 15.2% compared with the same period in 2012.

The figures from construction industry analysts Glenigan indicate that the UK construction sector has seen a rise of almost 1.9% in new build projects commencing in the three months to May 2013. And these improvements are firmly led by growth in the private housing sector.

Gains have been focused in London and the South East, but increased activity in Yorkshire and the South West in April are further signs of a recovery. And a number of £100m+ private housing projects will give those behind the Government’s Help to Buy and NewBuy schemes further cause for positivity.

Affordable Housing Issues

The Department for Work and Pensions has released a report highlighting the potentially negative impact Article 4 Directions on the growth of affordable housing.

The report findings suggests that the introduction of the Article 4 Directions have restricted planning permissions for Houses in Multiple Occupation (HMOs) and obstructed the provision of affordable housing in the private rented sector. The report also suggests that property investors and buy to let landlords are reluctant to develop their HMO/multi-let portfolios due to the impact of Article 4 planning restrictions in some areas.

The RLA have previously voiced opinions to scrap Article 4 Direction and is now set to consult with the government on the findings of the report and will strive to look into what this will mean for local councils and landlords.