Some 94% of housebuilders believe the Government’s target of 200,000 new homes a year cannot be delivered, according to a survey.
While most expect to see construction levels continue to rise, 30% said 180,000 homes a year is the maximum the industry can achieve.
The survey by Knight Frank also revealed the Help to Buy scheme is bolstering figures with three quarters of respondents saying the Government scheme’s extension will drive up development between now and 2020.
Grainne Gilmore, head of UK research at Knight Frank, said: ‘The question of whether it is feasible for housebuilders to plug the housing hole left by the relative lack of government investment remains a primary concern.
‘There is no doubt that developers have stepped up activity since the zenith of the financial crisis – official data shows completions in England rose 4.5% over the last year. But this still leaves development some way off the levels needed to meet demand across the UK.
‘Our survey suggests however, that development volumes will continue to rise, it is just a question of whether it is going to be enough to meet that 200,000 target. Looking further forward, more than seven in ten respondents expect the number of housing starts by their business to rise over the next 12 months, and nearly half of respondents expect an uplift in housing completions of up to 25%.’
