Housebuilding accelerated faster in the North West than any other English region over the past five years, analysis by Paragon Bank has revealed.
At 21,360, the number of new build house completions in the year to the end of March 2020 in the North West was 63% higher than the same period in 2015. On a compounded basis, that equates to growth of 10.3% per year over the past five years.
Other high growth regions include the West Midlands (57%), South East (52%) and Yorkshire & Humber (50%).
At the other end of the scale, the North East and South West experienced the smallest growth over the period at 20% and 19% respectively. Paragon Bank’s Development Finance division specialises in providing funding to small-to-medium sized residential property developers.
|
Region
|
2015
|
2020
|
%+
|
Compounded annual growth rate
|
2020 new build homes per 1,000 population
|
|
East Midlands
|
12450
|
16440
|
32%
|
5.7%
|
4.4
|
|
East of England
|
14910
|
22040
|
48%
|
8.1%
|
4.6
|
|
London
|
18360
|
23880
|
30%
|
5.4%
|
3.5
|
|
North East
|
6820
|
8160
|
20%
|
3.7%
|
3.9
|
|
North West
|
13110
|
21360
|
63%
|
10.3%
|
3.8
|
|
South East
|
21510
|
32650
|
52%
|
8.7%
|
4.6
|
|
South West
|
17170
|
20500
|
19%
|
3.6%
|
4.6
|
|
West Midlands
|
10650
|
16730
|
57%
|
9.5%
|
3.7
|
|
Yorkshire & Humber
|
9570
|
14380
|
50%
|
8.5%
|
3.4
|
Source: Paragon Bank analysis of MHCLG data
In terms of absolute numbers, the North East built the fewest new homes over the 12 months at 8,160. The South East was the region with the highest number of new homes built at 32,650.
Robert Orr, Managing Director of Paragon’s Development Finance division, said: “The development of new homes across all English regions has increased over the past five years, providing much needed properties in towns and cities throughout the country.
“However, we are still way short of the Government’s target of 300,000 new homes each year and with the population forecast to continue to grow, it’s important that the rate of new build development increases. Small to medium-sized property developers are an important component of housing provision and we are seeing strong demand from our customers as they look to build the homes of tomorrow.
“The Government’s planning reform proposals should encourage more new homes across the UK, which will be much needed as the coronavirus pandemic will have slowed new housing starts during 2020.”
When looking at the number of new homes built per 1,000 of the region’s population, the East of England, South East and South West came out on top with 4.6 homes per 1,000 each. Aside from London, these are also the areas that have built the most homes cumulatively since 2015, with each adding over 110,000 new homes each.
ENDS
For further information contact:
Michael Clarke
Head of Media Relations
Tel: 07740090746
www.paragonbank.co.uk
Notes to editors:
Data based on Paragon analysis of MCHLG data issued on 30 September 2020, specifically Table 253 within the indicators of new supply dataset.