The house building UK market is very competitive, with restricted amounts of land available and tight planning controls to ensure that new homes are environmentally sound and that accommodation is made available for a wide range of buyers.

Urban regeneration increases

After several years of protesting against house building on UK green belt land, campaigners are happy to see that developers are making use of city centre sites to build new housing. In former industrial cities such as Manchester, Leeds, Newcastle and Birmingham, developers have moved in to warehouses, factories and mills, making the most of high ceilings, exposed brickwork and metalwork and large windows. With their easy access to the city centres, contemporary fittings and furnishings and additional services such as private parking or gyms, they have become a highly profitable sector of house building. UK developers are now not only redeveloping old sites, but building brand new complexes on brown field sites in the cities, turning once dilapidated areas into new “villages”. In 2004, 70% of new UK house building was urban regeneration.

Detached house building decreases

Property developers have long been under fire for only building private estates with large, expensive detached houses on them. The government’s determination to provide more affordable housing has seen a change in the way that these estates are built. The National Home Builders Council says that 40% of the registrations for new house building in the UK are for flats, with detached houses only accounting for around one quarter of the total.

More housing needed

The number of houses will need to increase in order to meet demand, according to a number of experts. Simply increasing the number of affordable houses will not solve the problem of lack of housing. House building in the UK will need to increase across the board so that supply can meet demand. This will allow first time buyers to get on the property ladder, whilst having properties available for other property owners to move to. It is suggested that by 2021, the number of people living alone will have increased by 2.5 million, which presents a significant opportunity for those involved in house building. UK developers will need to use imagination and creativity to make the most of the sites they are able to build on.

What will house prices do?

Views are mixed on this, but most experts expect prices to continue to rise slightly in 2006. The dramatic increases of the last five years are unlikely to be repeated, but as there is still a demand for housing, a price rise of between one and four percent is predicted. The rise is likely to be less than the average wage increase, which should make housing slightly more affordable. For house building - UK developers and private individuals - this suggests that it is still a profitable market.

Should I build or buy?

House building in the UK is still strong and completions have increased recently. If you want your dream house, you could still build it more cheaply than you could buy it. There are a number of things to consider before taking this route, however. Most importantly, if you decide to build your own home or extend your current property, you will need a good builder.

The first step in your project is to hire the right builder. Use www.findalocal-builder.co.uk to get a list of builders in your area, and then look at our other advice articles to see how to make sure you choose the best builder for you.