Research by Birmingham and Newcastle-based property developer, StripeHomes, has revealed that, in 2020, almost £45 billion worth of new build homes came to the market in a substandard condition.
Last year, 145,830 new build homes were introduced to the English housing market and previous research from the Home Builder Federation shows that just 2% of these new builds were completely snag-free – in other words, only 2% came to the market in a perfect condition, leaving 98% as substandard.
The research by StripeHomes reveals that this means just 2,917 of the 145,830 new build homes delivered to the market last year were free of error. The rest of the homes, valued at an average price of £312,697 each, combine to create a total value of almost £45 billion, were sold in a substandard condition.
Diving deeper into the data, we learn that England’s most prolific new build region is the South East where, in 2020, 26,410 new build homes were introduced to the market at an average price of £381,726. If just 2% of these, or 528 homes, were delivered in a perfect condition, it means property to the value of around £9.9 billion came to the market in a substandard condition.
In London, an estimated 382 of the 19,110 new build completions were completed snag-free, meaning the total value of substandard property coming to the market was £9.3 million.
In the East of England, £6.4 billion worth of substandard new builds came to the market; in the South West it was £4.7 billion; and in the North West, the total was £4.4 billion.
Managing Director of StripeHomes, James Forrester, commented:
“What can be said about such a dire level of professionalism? It’s a shocking statistic and exposes just how off-kilter the priorities of the big developers have become. They don’t care about delivering good, safe homes, they just want to satisfy their profit ambitions.
“Delivering substandard homes 98% of the time is outrageous and there are very few other industries where such a failure rate would go unpunished, yet it continues to happen across the property industry.
“We can appreciate that there is immense pressure on the house building industry to deliver more homes but we also know that there is an abundance of smaller developers working hard to ensure the homes they deliver are fit for purpose. This would suggest that this sloppy performance is a result of larger companies who remain unable to police the standards of their work, instead allowing the nation’s new build buyers to fork out for a home that is riddled with faults.”
|Location||NB completions (2020)||Est number snag free (2%)||AveNB price (2020)||Est value of new builds with snags|
|East of England||17,770||355||£366,217||£6,377,524,524|
|West Midlands region||14,210||284||£274,179||£3,818,163,773|
|Yorkshire and the Humber||12,800||256||£214,148||£2,686,271,877|
|Sources||Gov.uk – Live tables on house building||Home Builder Federation||Gov.uk – UK House Price Index|