The cost of building a home may be higher than house prices in up to 60 UK local authority areas, according to new research.
Analysis by The Housing Forum has put the cost of developing an average-sized three-bed house at about £242,000, including construction, external works, planning and other fees.
The forum said that once a ‘modest’ sum for purchasing the land was factored in, the cost of building the home may exceed sales prices in 60 council areas, where an average newbuild costs less than £280,000.
Director of policy and public affairs Anna Clarke said: ‘After years of inflation, it is clear that more needs to be done to make new housing more financially viable.
‘There are things that the housing sector can do, like standardising designs and finding efficiencies in construction, but ultimately leadership must come from a national level.
‘The Government must do what they can in the short term to bring down costs, including ensuring a stable policy environment, provide financial certainty for social landlords looking to deliver new homes, and lead the way in researching ways to reduce the cost of building new homes.’
