The ‘grey belt’ meets Lords criticism. New HBP portal launches. Optimistic market to start January. Crest Nicholson earnings drop by 722%.

The ‘grey belt’ meets Lords criticism.

The UK government's recent proposal to develop "grey belt" land—areas within the green belt considered to have limited environmental value—has faced significant criticism. The House of Lords Built Environment Committee concluded that the policy was "implemented in a somewhat rushed and incoherent manner" and is unlikely to substantially impact housing development or meet the target of 1.5 million new homes by the end of this parliament.

Additionally, the government revised its initial requirement that 50% of homes built on grey belt land be affordable. The new mandate stipulates that such developments must offer a 15 percentage point increase in affordable housing over other local projects, capped at 50%. Critics argue that this adjustment could reduce the number of affordable homes and negatively affect rural areas.

Furthermore, some MPs have expressed concerns that building on green belt land could be detrimental to regions like Surrey and south-east England. They argue that such developments may lead to overexpansion and the loss of valuable green spaces.

In summary, while the grey belt policy aims to address housing shortages, it has been met with criticism regarding its implementation, potential effectiveness, and possible adverse effects on rural communities.

New HBP portal launches

At Housebuilder Pro we've launched our new customer portal. In our next mastery session at 10AM on the 14th of February find out about:

• Real-time build updates, allowing buyers to track the progress of their new homes conveniently.
• On-demand access to snagging information, enabling customers to report and monitor issues directly through the platform.
• Access to choices and extras. The portal allows buyers to personalise their homes by selecting fixtures, finishes, and layouts, all within an intuitive interface.
• On-demand access to documents for a handover pack, as well as instruction manuals and videos.

Click the button below to sign up!

Optimistic market to start January

In January 2025, the UK's housing market exhibited notable trends. According to Zoopla's House Price Index, the market commenced the year robustly, with buyer demand increasing by 13% compared to the previous year. This surge is partly attributed to the impending removal of stamp duty relief in April, prompting first-time buyers to expedite purchases in affected price brackets. Consequently, new sales agreed rose by 12%, and the number of homes available for sale grew by 10%. House price inflation stood at 2.0%, a significant rise from the -0.9% recorded the previous year. Regional disparities were evident, with Northern Ireland experiencing a 7.7% increase, while the East of England saw a modest 1% growth.

Concurrently, data from Nationwide indicated a deceleration in house price growth. The average house price reached ￡268,213, marking a 0.1% monthly increase and a 4.1% annual rise, both figures falling short of economists' expectations. Elevated mortgage rates and persistent affordability challenges were identified as primary factors constraining growth. Notably, mortgage payments for a typical first-time buyer now constitute 36% of take-home pay, surpassing the long-term average of 30%. Despite these challenges, the market remains resilient, with improvements in mortgage rates and wages attracting more buyers. However, uncertainties persist regarding future interest rate adjustments and the conclusion of a temporary stamp duty reduction on 31 March.

In summary, while the UK's housing market demonstrated strength at the outset of 2025, it continues to grapple with affordability issues and the potential impact of forthcoming fiscal policy changes.

Legal & General fund commits to affordable housing

Legal & General has secured ￡510 million to enhance affordable housing development in the UK. This funding will support the construction of over 3,000 affordable homes nationwide, addressing the pressing need for quality housing. The initiative aligns with Legal & General's broader strategy to invest in sustainable communities and tackle the housing crisis. The company has a history of significant investments in affordable housing, including recent projects in Birmingham and London.

Crest Nicholson earnings fall by 722%

Crest Nicholson, a UK housebuilder, reported a pre-tax loss of ￡143.7 million for the fiscal year ending 31 October 2024, a significant decline from the previous year's ￡23.1 million profit. This downturn is primarily due to a substantial increase in fire safety remediation provisions, which rose to ￡249.3 million from ￡145.2 million at the half-year mark. The company recorded an exceptional charge of ￡166.1 million, encompassing ￡131.7 million for additional fire remediation and ￡25 million for building defects identified in projects completed before 2019. Despite these challenges, revenue experienced a modest decline of 6% to ￡618.2 million. Chief Executive Martyn Clark emphasized that the company now has greater clarity on legacy issues and has allocated necessary provisions, particularly concerning fire remediation efforts.

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