Home Residential PropertySocial housing delivery increases at highest rate since 2014/15

Social housing delivery increases at highest rate since 2014/15

by LLP Editor
3rd Dec 21 11:52 am

Market analysis by real estate debt advisory specialists, Sirius Property Finance, has revealed that the level of social housing being built not only hit a 13 year high prior to the outbreak of COVID-19 but social housing as a percentage of all homes built also hit its highest levels since 2015/16.

The analysis of the latest dwelling completions data by Sirius found that the total number of homes delivered to the UK market hit 210,984 in 2019/20 before the pandemic stopped the industry in its tracks.

This marked a 3.5% increase on the previous year and the highest number of homes completed in a single year since 2007/08. However, it was also the smallest annual uplift in housing delivery seen since 2012/13.

When dissecting the market by private and social dwelling delivery, the data shows that 169,087 new homes were delivered via the private sector in 2019/20 across the UK market.

Again, the highest level of new homes completed on an annual basis since 2007/08 and 2.2% more than the previous year. But, this annual increase was also the smallest seen since 2012/13.

In comparison, just 41,897 social dwellings were completed in 2019/20. While this only equates to 20% of total homes built, itโ€™s the highest proportion of market share since 2015/16.

Itโ€™s also the highest level of social housing delivered to the UK market in a single year this side of the millennium and the largest annual increase (8.8%) since 2014/15.

Head of Corporate Partnerships at Sirius Property Finance, Kimberley Gates, commented: โ€œThe private sector has done a tremendous job ramping up the delivery of new housing across the UK and while weโ€™re yet to return to the highs of 2007, weโ€™re certainly heading in the right direction.

However, itโ€™s important to also recognise the great work that is being done with regards to the delivery of social housing.

Although it still accounts for a far smaller proportion of total housing stock, there have been notable efforts to boost social housing delivery and weโ€™re now consistently seeing annual completions hit their highest levels this side of the millennium – and by some margin.โ€

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