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New home building has hit a 25-year high but high demand means prices

January 2014, 31
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New home building - builder

Since the financial crisis of 2008 it seems that the house building in the UK is now back on top, at a 25 year high in fact! According to a new report by the NHBS (New House Building Council) new homes in the UK rose by 25% in 2013 to a 133,670 builds. This is the largest volume since prior the recession. The Capital City, London, saw 26,230 new homes built there alone which is an increase of over 60% on the previous year.

Every country in the UK is seeing similar figures. The NHBS believe this will be extremely beneficial for one group of people - Migrants in the UK. The reason for this is firstly, due to the demand of building work and the lack of skilled workers this may mean that much encouragement will be given to those migrants with the desired skills. Such as a smoother Visa process, financial incentives and free accommodation to name a few. It will also be beneficial to those migrants who wish to relocate here permanently, as there will now be a much larger selection of accommodation to buy or rent. Much more than in previous years.

The prices of the new homes, especially those in London, is thought to be at the higher end of the market. Which is the ordinary for new builds, especially in the capital. London is the most affluent area of the UK, for a house that you could pay £1000 a month here for in rent you would get further north of the UK for £300. The difference is that vast.

Where a migrant chooses to settle will have much bearing on the life they live in the UK. House prices which are higher end, usually are so for a reason. It may be due to their closeness to amenities, schools, industry, the size of the home, year of build, but most importantly it will be due to the postcode of the home. Northern properties in cities such as Manchester, Newcastle, Birmingham and most of Wales and Scotland are statistically much more less expensive than homes to the south of the UK in cities such as London, Kent, Cotswolds and Somerset.

When the restrictions were lifted for Romanian and Bulgarian migrants at the start of the year, it was expected these people would come in their droves and fill the many positions in construction. But this failed to happen. And so will building demands, deadlines and many projects in the pipeline the simplicity is: we do not have the manpower to do this alone. Migrants are needed.

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