Demand and Supply Challenges for New Homes to Continue into 2022
The imbalance between the number of homes being built and the number of buyers looking to invest in a new property is set to remain for the year to come, homebuilding firms have warned.
The ‘Whathouse? Predictions Report 22’ has revealed that around 71% are somewhat optimistic about the next twelve months, whilst 73% predict that the supply chain problems, the industry has been experiencing, will almost certainly have some impact in 2022.
Participants in the report felt that the housebuilding industry had a lack of confidence due to the rising inflation rate and unpredictable product and material prices. Also, a concern, is the availability of materials which could possibly be affected by border issues, and the UK’s new CA mark.
Around 67% of property builders showed concern that new builds could be hampered in the near future by the lack of skilled workmen such as bricklayers and plasterers, as well as planning issues and logistical problems caused by Brexit.
Managing director of WhatHouse?, Daniel Hill, commented: “Throughout 2021 UK housebuilders raised concerns around supply chain shortages. The problem was reported by volume and SME housebuilders alike, with almost three-quarters of both groups reporting supply shortages of key building materials.”
“Looking ahead, more than a quarter said supply chain delays would have the greatest impact on the housebuilding sector in 2022.”
Mark Quinn, Quinn Homes chief executive officer added: “For 2022, we see the continued constriction in the supply of new homes, as a result of the combination of price increases and shortages of materials and the delays in the planning system that have hampered construction significantly in recent years. We see these factors as underpinning the housing market in 2022.”
Sales and marketing director of Hayfield Homes, Kelly Sharman, said: “Given the supply chain and labour shortages that are creating delays to construction programmes, our biggest challenge in 2022 will be ensuring consistent high-quality delivery of new homes within a timely manner.”
“These ongoing issues, which have been significantly affected by the pandemic and Brexit, are having an impact on output and ultimately the number of new homes being delivered to customers.”
Sales and marketing director of Robertson Homes, Sharon Spinelli, concluded: “I expect many of the challenges of the last two years to continue into the coming year. Trade and material shortages and Covid restrictions have all placed pressure on teams with a knock-on effect on completion dates.”