Meeting the demands for new houses as property prices are set to rise by as much as 30% over next 3 years, and first time buyers take their first tentative steps on the property ladder.
Fastest Rise for 3 Years
Following on from the Rightmove May House Price Index report that claimed “House Prices are set to rise by a further 2% this year”; The Nationwide Building Society have also seen a 0.3pc increase in June, equating to an annual 1.9pc increase – the fastest in 3 years.
Help to Buy Spurs Trend
This positive trend seems to be gathering momentum as both construction and financial service organisations continue to paint an optimistic future for the housing market. Whilst some experts are currently predicting a 30% rise over the next two years as a result of the governments’ Help to Buy’ scheme announced in the March budget, others are more cautious. The Halifax whilst acknowledging prices have indeed risen, feel it is too early to attribute the rise to the new scheme.
Only 5% Deposit Needed
Under the government’s new initiative first time buyers only require a 5% deposit to buy a newly built house to the value of £600,000. With no salary restrictions and the demand for housing far outweighing supply it is not surprising that the Home Builders Federation (HBF) are claiming that over 500 people a week reserved homes in the first 8 weeks of the scheme.
Greater Optimism in Construction
This news will no doubt bring renewed optimism to the struggling construction industry. Whilst reports suggest a slight increase since May, the industry still “remains under a miserable cloud” suggests Richard Threlfall, UK Head of Infrastructure, Building and Construction.
Timber Frame Can Help Meet Demand
This growing demand for new builds will inevitably lead to increased competition in the building materials supply sector. Increased use of Timber Frame as a method of construction will inevitably be one way the industry seeks to meet the increased demands for high quality, fast affordable housing. Achieving sustainability – the reduced use of energy and increased use of natural materials is now a major requirement for new builds and is becoming increasingly important when seeking planning approval.
More & More People Are Choosing Timber Frame
Whilst in Scotland and Ireland around 65% of new houses use timber-frame the lower levels in the rest of the UK is already on the increase as builders and developers realise the huge benefits of off site construction. Fergus Ewing MSP, Minister for Energy, Enterprise & Tourism addressing the UK Timber (UKTFA) Frame Association’s conference held in Edinburgh highlighted the success story of the Timber Frame Industry in Scotland and acknowledged the increasingly important role it plays in both the economy and its export efforts.