Property developer StripeHomes reported that over the past year, the value of new homes delivered has fallen by -6.7%.
StripeHomes was able to accumulate these results by analyzing the evolution of new construction inventory delivery and market values and their annual evolution since the beginning of the pandemic.
Although there was a 4.5% annual increase in the value of new construction, this was offset by a -10.8% annual decline in the number of new homes coming onto the market.
New homes delivered across England
The results show that between 2020 and 2021, 216,489 new homes were delivered to the property market across England while the average value of a new home rose by 4.5% to £318,196.
This represents £69bn, or 6.7% less than the £74bn of new homes delivered the previous year.
Overall, only two regions saw an annual increase in the total value of new homes built.
The total value of new homes delivered to the East Midlands market was £5.6 billion from 2020 to 2021. Despite a 1.9% rise on the previous year, the actual volume of homes new decreased by -3.6%.
The South West saw an increase of 0.8%, with new homes delivered last year totaling £7.4bn and an annual decline of -4.2% in volume.
The results put London number one, with £18.5billion of new homes delivered last year.
StripeHomes Managing Director James Forrester concludes, “The new construction industry has been working overtime to maintain inventory delivery over a very difficult few years for a number of reasons.
“Covid restrictions, labor shortages and rising material costs, among others, have all posed problems for homebuilders across the country and so the ripple effect was inevitably going to have an impact. on the volume of stock delivered.”
“Even a pandemic spike in property prices wasn’t enough to close the gap in the total value of this stock, although it’s fair to say they’ve still made a huge shift in account given the difficult circumstances and we take our hats off to them.”