Data from the public accounts committee shows that Government is going to fall significantly short of its new homes target. In a new report The Department for Levelling Up, Housing and Communities admits it will miss its recently reduced target of 180,000 additional homes by a staggering 32,000. This is all happening against the backdrop of falling starts on new construction projects across the UK due to high build costs, inflation and a cooler market.
The Government needs to be building over 300,000 new homes per year to begin to reduce the increasing supply and demand imbalance in the housing market. However, after a commons vote on the levelling up and regeneration bill 60 Conservative MPs called for this target to be scrapped and to avoid a major rebellion the Government has agreed.
Unsurprisingly the current pressure on the existing housing stock has seen tenant demand shoot up 20% year-on-year, according to property website Rightmove, yet the number of available properties is down 9pc. This has resulted in private rents rising at their fastest rate since records began.
This indicates that if you can find the right property at the right price you can expect to see your rental yield increase significantly over the coming years. Most importantly you need to be sure the rents being quoted on any project are correct, have been checked and verified and that they can be supported by the local market.
