A shortage of new build housing will emerge in the South East of England in 2010, according to a report by property consultants Knight Frank
New build starts in the region are likely to be the lowest since the 1950s, the report claimed. Combined with the lack of supply in the second-hand market, caused by the number of potential vendors opting to ‘wait out’ the recession, Knight Frank believes this could lead to a shortage of properties for sale next year.
Jon Neale, head of development research at Knight Frank, said: ‘Developers who opt to move now may be in the position of being able to sell into an undersupplied market next year. However, they need to be very cautious, opting to deliver in-demand family housing into those areas with resilient housing markets.
‘Elsewhere, a greater number of forced sales could undermine this strategy.’
The report also suggested that, given the current market, it would be difficult for the required delivery levels to be achieved unless new models are found for regeneration schemes or more greenfield land is released for development.
However, it added that a number of barriers to development are being challenged in the region. Reviews of green belt are likely to take place around some major settlements, and the publication of the delivery framework for the Thames Basin Heaths means that new homes can now be built in closer proximity to the wildlife area.