Housebuilding construction

New housing supply in north of England exceeded target in Q3

Savills has released its English Housing Supply Update Q3 2022 revealing healthy construction levels and a strong development pipeline.

As we head towards the end of 2022, the country’s housing supply appears to be on a positive trajectory, placing it in a good position to withstand any headwinds that it may face in 2023.

According to Savills‘ report, all parts of the housing development pipeline enjoyed a period of growth during the year to Q3. This includes consents, new home starts and completions, which all reported growth during the period.

But it was the north of England and the east of England that were the standout regions, with both areas surpassing their housing need targets in the first nine months of the year. The report also notes that these areas have enough granted planning consent to ensure they continue to meet housing supply targets in the short-term.

What about the 300,000 homes target?

Planning consents across the country saw a marginal increase over the period, with approximately 285,000 new homes gaining consent, although this is 12% down on the 2017-19 average.

When considering that the government still has its 300,000 new homes a year target in place, Savills notes that “substantially more consents are needed”, adding: “In order to be sure of hitting the target, consents ultimately need to reach well above 300,000 due to attrition in the development process.”

New home starts saw a huge 28% boost between the first and second quarters of this year, taking the total annual number of new starts to its highest level since just before the 2008 financial crisis.

And on the completions front, the last six months have seen rises in numbers from both housebuilder reports and EPC data, with the latest figures suggesting that 244,200 new homes were built in the year to Q3 2022. The most recent completions peak in 2019 was just 4% ahead of this figure.

Housing supply challenges in the south

Using both EPC data and full planning consent data, the report reveals that a total of four regions in the UK built enough homes during the first three quarters of the year to meet housing needs. These were the north west, the East Midlands, Yorkshire and the Humber and the North East.

The five remaining regions (West Midlands, south west, east of England, south east and London) had enough planning consents granted to ensure a sufficient housing supply in the future.

However, the south east is set to face a particularly tricky time due to the fact that fewer homes were granted consent than were built up to Q3 2022, meaning housing supply could be set to fall below what is needed; the number of consents was 21% short of what’s needed.

London paints a more promising picture, according to Savills, as 20,500 new homes gained planning consent than were delivered, so there are plenty in the pipeline.

The report notes: “If followed through, that would boost London’s housing delivery substantially, but many consents will be reworked before any homes are built.”

Build-to-rent sees activity slide

The build-to-rent sector has been surging in recent years with huge levels of investment and new developments springing up across the UK. 2021 in particular saw a huge acceleration in this realm, which has proved hugely positive for housing supply in the private rental sector.

However, Savills’ report shows that there has been a slowdown in starts and completions this year so far, which have fallen by 15% and 30% respectively. In London, which is a leading BTR location, completions declined by 36% compared to last year, while there was a 25% dip across other regions as a whole.

The report comments: “Looking ahead, the sector has yet to fully build out previous gluts of construction starts, which should sustain completions in the medium-term even with fewer schemes starting on site.”

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:


Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment


Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:


+44 (0) 333 123 0320

Open from 9am-6pm GMT


+852 6699 9008

Open from 9am-6pm HKT