The fragility of the housing market outside of London is still very much a concern for those in the industry and more importantly for those looking to find decent accommodation in which to live. The recent figures released by The National House Building Council (NHBC) illustrates amply the problems prospective home buyers are facing and how vital it is for property investors with an interest in landlords insurance to expand their portfolios.

Not enough new builds

While sales of established properties at least appear to be holding steady, a chronic under supply in new properties is continuing to harm the housing market. In Wales, where housing needs are getting desperate, there have been a number of new homes built and covered by homeowners insurance in the last three months, but many more are needed to meet what seems to be an ever increasing demand. According to the National House Building Council there were 1200 homes built in the last three months but this is only a small percentage of the number actually needed.

It is not just a problem for Wales as throughout the United Kingdom the number of new homes that have been registered with NHBC has dropped compared with the same time period year

Who will buy the homes?

Only last week the Government announced that it was looking to see almost a quarter of a million new homes built every year for the next 4 years. This it said would ease the burden on local authorities, councils and the private buyer. Where the homes will be built and by whom is still far from clear. Housing associations have been informed as to whether their bids for Government funding for building new homes have been successful but builders are still uncertain as to how the Green Deal and other regulations will impact on their building plans. And of course the other uncertainty is who will buy the homes aimed at the private sector. Many more landlords will fancy the opportunities to grow their business if the conditions are right and they may need to, if banks don’t help private homebuyers.

Market dependant on Landlords

The NHBC feel the coalition needs to remain strong on its current policy as well as being prepared for further assertive action if it becomes clear that house building is getting to a perilously low level. In recent months the UK property market has been drowning in the negative publicity of low interest rates and the low supply of realistically priced homes. The property market still has stiff challenges ahead for the rest of this year and probably the whole of 2012. The outlook remains uncertain but, with the UK economic recovery expected to remain sluggish landlords may have a big role to play in housing the residents of the UK.