New-build homes at highest level since recession

THE volume of homes currently under construction in Manchester is at its highest level since 2008.

Results from Deloitte Real Estate’s annual Crane Survey show above average levels of development are scheduled for 2016 in what will be the highest on record since before the recession.

There are now 13 residential schemes ongoing in the city accounting, accounting for 2,982 residential units.

Notable projects within this figure include One Cambridge Street, Angel Gate and 1 Water Street. The number of residential units currently under construction is almost double last year’s at 2,982 units, up from 1,426.

Deloitte Real Estate director John Cooper said: “Last year levels exceeded the 2002-2014 average and highlighted strong signs of recovery for the residential development market.

“This year, the question was whether this level of growth could be sustained, or if development was being artificially bolstered by the HCA and Built-to-Rent funding unlocking schemes such as Nuovo, Smithfield Square, The Point and Greengate.

“In short, there’s nothing artificial about Manchester’s ability to induce residential development – it is clearly being seen as a place to invest.

“The number of new schemes being delivered has increased from three last year to 12 this year, which is the highest number of new starts since 2008.
 
“The anticipated delivery of units for 2016 is almost 400 units higher than the pre-recession average. This level of residential delivery is unparalleled in any other regional city.”

The report also indicated a clear growth agenda for the Northern Fringe areas of the city centre.

It is also said it was important to note that funding from The Greater Manchester Housing Fund, which will offer £300m over the next 10 years, has helped to assist in the completion of 744 units within the study areas since its inception.
The buoyancy in the home construction sector in the city has also been underlined by a report from the Home Builders Federation which said Greater Manchester saw the biggest increase in housebuilding employment outside London, with an additional 5,418 people recruited last year.
More than 100,000 new jobs were created in England alone as a result of the big increase in house building.

Analysis by the HBF shows that the house building industry is now supporting around 667,000 jobs, and details how local economies the length and breadth of the country are benefiting from the thousands of additional homes now being built.
 
Improvements to the planning system and the highly successful Help to Buy Equity Loan scheme have helped house builders increase output by around a third in just two years.
 
The most recent Government figures show that there were 170,690 net additions to the housing stock during 2014/15, an increase of almost 25% on the previous year. The main component of this new stock was from 155,080 new build completions.
 
HBF executive chairman Stewart Baseley said: “The house building industry has increased its output at the steepest rate for decades.

“Delivering the high quality homes we desperately need is also providing a huge boost to economies across the country.

“The industry is recruiting and training tens of thousands of new people to ensure it can continue to deliver significant sustainable increases in supply and provide the high quality homes the country needs.”

Click here to sign up to receive our new South West business news...
Close