How and where is the government going to fit in, and build, 1.5 million new homes?

Believe me when I tell you the chartered surveying profession would be delighted if the new government delivers on its promise to build 1.5 million new homes. But look around you, where are they going to go? writes Zah Azeem, Partner at Wimbledon based Chartered Surveyors Scrivener Tibbatts.

Berkeley Group has announced it will become an institutional landlord by constructing and managing 4,000 homes built-to-rent (BTR) over the next decade, as it expects residential sales to remain “subdued” in the short-term.

Last week it announced it had forward sold 1,000 homes to institutional investors across five sites over the past three years.

Reported here by Housing Today it said: “We now believe that adopting a more strategic route to this market will drive best value for these assets by creating a portfolio of scale, professionally managed, with proven income levels stabilised prior to disposal.”

Their 4,000 homes will be delivered across 17 brownfield regeneration sites, Berkeley says. The establishment of the portfolio will be financed by internally generated funds, debt secured against the rental properties and third-party capital.

Berkeley Homes is one of the top ten housebuilders in the UK, but it only managed to build and sell 3,521 properties in 2023, down from 4,043 the year before. Even its plan to build 4,000 BTR homes in a decade is barely scratching the UK’s housing need.

I would love for their to be a home available to buy for everyone who wants one. But do the maths. The new government may also want to build 1.5 million homes in five years, but can it be done? Given Berkeley’s expert knowledge and experience of the facts on the ground – green belt or otherwise – it’s a very tall order.

If you would like to discuss Party Wall, Leasehold or Freehold valuation issues, please contact me direct via email at zah@scrivenertibbatts.co.uk or call 020 8947 7040.