9 November 2021
The delivery of new homes is at risk because of supply chain concerns and land supply issues, according to new research released today by global property consultancy Knight Frank.
In a survey conducted by Knight Frank of over 50 of England’s leading volume and SME housebuilders, 61 per cent of respondents said that supply chain issues and rising material costs were the biggest challenges adding pressure to their bottom line.
Looking ahead, land availability is expected to have the greatest impact on the housebuilding sector over the next three months, followed by planning reforms, policy uncertainty and the price of land.
Availability of land was also identified as a bigger challenge this quarter compared with Q2, with 21 per cent of housebuilders saying it was a challenge compared to 16 per cent the previous quarter.
Asked about availability of land, 80 per cent of respondents said it was ‘limited’ or ‘very limited’.