UK housebuilding set to reach 40-year high

Housebuilding in the UK is set to reach its highest level in over 40 years due to new planning reforms. The Office for Budget Responsibility (OBR) estimates these reforms will add 170,000 new homes over the next five years, bringing the total to 305,000 annually. This increase will help raise the overall housing stock by 16% by the end of the parliamentary term. Despite these positive forecasts, experts say that more action is needed to support homebuyers, especially first-time buyers. Current measures may not solve the affordability issues many face when trying to enter the property market. Felicity Barnett, from the Mortgage Advice Bureau, highlighted the need for accessible options for young buyers in their 20s. She pointed out that current lending criteria can trap potential homeowners. While the OBR forecasts a small decrease in house prices due to increased supply, many buyers will soon face a reduction in "nil rate" bands for stamp duty in England and Northern Ireland. This has led some to rush their home purchases to avoid higher taxes. Industry leaders emphasize the importance of a stable economy and easing mortgage regulations. Richard Donnell from Zoopla noted that supportive measures for first-time buyers are crucial not only for homebuilders but also for the rental market, which remains under strain.