A significant increase in homeowner housebuilders has been revealed in the latest research conducted by Benham and Reeves, as reported by Government data. The analysis focused on the current and historical levels of completed dwellings across England, along with the proportion of householder development decisions in the overall landscape of decisions.

In the fiscal year 2020-21, amidst the initial throes of the pandemic, the number of completed dwellings across England witnessed a stark decline of -12%, totaling 154,660. Subsequently, there was a recovery to 174,440 in 2022-23, although this figure remains -0.5% below the pre-pandemic peak of 175,330 observed in 2019-20.

However, projections for the ongoing fiscal year 2023-24 indicate a potential drop to 155,974 dwellings, reflecting a year-on-year decrease of -10.6%.

In response to an inconsistent housing delivery and insufficient supply, Benham and Reeves' analysis points to homeowners taking matters into their own hands to address the void left by traditional housebuilders. Householder developments, defined as residential planning applications excluding a change of use, focus on singular property improvements like extensions, loft conversions, or structural changes.

Between Q4 2022 and Q3 2023, a substantial 189,109 householder development decisions were submitted across England, comprising 54% of all decisions, encompassing major and minor development applications. This reflects a 3% increase over the past five years (Q4, 2017 to Q3, 2018), where householder developments accounted for 51% of all development decisions.

Regional variations manifest, with the North West experiencing a 5% increase in householder developments over the last five years, while the West Midlands saw a 4% rise. Notably, the South East leads with 60% of decisions made by homeowners in the past year, followed by the East of England (57%) and North West (56%).

Marc von Grundherr, Director of Benham and Reeves, provides insight into the situation, stating, "Although we have seen an annual increase in the number of homes being delivered in recent years, we’re yet to see a return to the pre-pandemic peak where annual completion levels are concerned, and the issue of supply is only forecast to get worse this year."

He continues, "With another Budget likely to focus on vote-winning initiatives aimed at initially fueling demand, rather than focusing on the long-term issue of building enough homes, we can expect more of the same when it comes to the shortage of homes being built going forward."

In light of these challenges, homeowners increasingly engage in self-improvement projects. The prevalence of householder development decisions, constituting over half of all annual decisions, underscores the growing trend of homeowners addressing their housing needs.