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The demolition hotspots where developers are making way for new homes delivery

23rd Apr 24 8:44 am

The latest industry research by property development appraisal software, APRAO, has revealed that developers across the South East have been hardest at work making way for future new homes, with the region seeing the largest number of demolitions over the last year, as well as the second largest annual increase.

APRAO analysed Gov data looking at the number of demolitions to have taken place over the last year* across England and which areas of the property market have seen the largest increase in demolitions as developers look to make way for the construction of new-build housing.

The analysis by APRAO shows that some 5,474 demolitions took place over the last year, a drop of -4.5% versus the previous year and the lowest annual total seen over the last 15 years. This suggests an air of hesitation amongst the big housebuilders to clear ground in order to deliver new homes, having faced a landscape of higher interest rates, cooling house prices and subdued buyer appetites due to higher borrowing costs.

However, this decline in demolitions isn’t a trend that has engulfed the entire property market and, in fact, some areas have seen a sharp increase.

With 1,729 demolitions taking place over the last year, the South East ranks as the nation’s demolition hotspot. The region has also seen this number climb by 39% year on year, the second highest annual increase of all regions.

However, it’s Yorkshire and the Humber that has seen the largest annual increase, with the number of demolitions seen across the region climbing by 53% year on year.

The North West (+32%) and East Midlands are the only other two regions to have seen an uplift in developer demolitions.

Of those to have seen a decline, London has seen the largest reduction, with -58% fewer demolitions taking place over the last year versus the year before.

CEO of APRAO, Daniel Norman, said, “The demolition of existing structures is often the first step in the development journey and, as a result, demolition data can give us key insight into just where housebuilders are moving forward with their plans to deliver new homes.

This can be done to make way for new homes specifically, as well as the required infrastructure required for a development, or even for a commercial venture.

What the data does highlight is that the volume of demolitions has fallen considerably over the last 15 years, although the decline seen over the last year has certainly been intensified by wider economic headwinds such as higher interest rates and a decline in buyer activity.

However, this trend hasn’t been seen at a national scale and based purely on demolition levels alone, Yorkshire and the South East certainly look poised to see an influx of new homes over the coming years.”

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