17 Feb

New homes may not meet demand

New homes may not meet demand

Strong demand for new homes is set to outstrip supply, according to an international real estate company.

It is expected that property developers will increase the number of homes built each year to 167,000 by 2018. However, this is likely to fall short of demand in England  - which is expected to equal around 240,000 new properties per year.

Savills Research estimates that unless finance for small businesses and private sector expands, then estate agents could see a real lack of supply in future years.

Susan Emmett, Savills director of residential research, explained: "As the economy improves a lot of new supply from the private sector will be aimed at market sale.

"Bolstering the private rented sector with higher quality housing at market rents will be key to providing the levels of housing the country needs."

Savills expects 119,000 homes to be completed in 2014, increasing to 167,000 a year by 2018.

Last year, the value of the UK’s property stock passed £5 trillion mark for the first time.ADNFCR-1222-ID-801694019-ADNFCR

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