Nationally, the UK is suffering from a significant housing shortage – particularly of properties that buyers can afford in places where people want to live. To this end, there are a number of government policies designed to ease housing supply. One of these is Housing Zones. Housing Zones are intended to increase housing supply by simplifying planning procedures, improving access to finance and developing partnerships between local authorities and developers. They are designed to provide 200,000 new homes over the next few years, with 51,000 in London alone.
Housing expansion on this scale offers opportunities as well as risks to property investors. Buy to let investors will be offered opportunities to invest in the new Housing Zones, with many of them expected to offer affordable and good value property which could be popular with tenants. However, there is a risk they could increase housing supply substantially in some areas, diluting letting demand and reining back future price rises. So, investors and would-be property investors should be aware of planned Housing Zones in their area before investing.
Here’s an update on where these new homes are expected to be in England (outside London):
Ashchurch, Tewkesbury, Gloucestershire.
Bescot, Sandwell, West Midlands.
Castleford, West Yorkshire.
Coseley, Dudley, West Midlands.
Elstree Way, Hertfordshire.
Foxhill, Bath and North East Somerset.
Gateshead, Tyne & Wear.
Hinkley, Sedgemoor, Somerset.
Hoyland and Dearne Valley, Barnsley, South Yorkshire.
North East Lincolnshire.
Pennine Lancashire, Blackburn.
Stoke On Trent.
Suffolk Rural (Baberg and Mid Suffolk).
Whitehill and Borden, Hampshire.
Western Links/Avoncrest, Somerset.
Weston Super Mare, Somerset.
If you are interested in finding out more about London Housing Zones you can find our Insider report on the subject here: 18 London Locations Scheduled For Thousands Of New Homes