Demand for new homes has been driven even higher in the UK by the Help to Buy scheme. As a result, planning permissions granted in the year to June was the highest for a 12 month period since 2006.
According to the Home Builders Federation (HBF), there is a strong correlation between the planning permissions that are granted today and the homes that are completed in two or three years. The new home figures suggest builder confidence as first-time buyers continue using Help to Buy to get a foot on the property ladder.
The housing industry is urging the UK government to specify the future of Help to Buy beyond 2021, when it is set to expire. The scheme has helped the new build sector and first-time buyers progress despite the generally slower housing market.
The HBF has published a report, Stepping Up, which shows that Help to Buy now accounts for one in 12 of all buyers getting on the property ladder and is driving investment in new sites. The number of homes built each year supports over 170,000 jobs, and new housing supply has gone up by 50% since the scheme was introduced.