Most roads, sewers, and drainage systems on new estates are left being privately managed, meaning homebuilders are forced to charge new homeowners
Research from the Home Builders Federation (HBF) has shown that in the last decade, just 10% of new build infrastructure has been adopted by local authorities.
This means that private companies are managing the remaining 90%, who in turn charge maintenance from homeowners, who still also pay council tax, water, etc.
Shifting financial burdens to homeowners
When looking at new sewers and sustainable drainage systems (SuDs) specifically, a whopping 97% and 98% remain unadopted years after they are built.
The issues compound, as roads are generally not adopted until sewers are. With just 3% of sewer adoption applications being completed in the last three years, it is easy to see how this issue can feed into the other.
Furthermore, the HBF’s research found that a third of the councils that they surveyed had not adopted any roads at all.
There are several barriers causing this, including inconsistencies in local authority design requirements, lengthy adoption processes, and increased costs of adoption for bonds, commuted sums, and inspection fees.
At a time when helping first-time buyers is imperative, this issue makes buying a first home (as new builds often are) less appealing.
The report can be read in full here.
First time buyers need extra support
Writing for PBC Today earlier this month, Emma Ramell, director of external affairs at the Home Builders Federation, discussed why first-time buyers must be a priority in the upcoming Autumn Budget.
For homebuilders, viability is one of the biggest current issues, as a lack of viability means development is subdued and investment is reduced, with investors having low confidence.
She writes that, along with improving viability, the government can also remedy the issue with improved support for first time buyers.
Emma said: “For aspiring homeowners, the barriers keep mounting. Stretched affordability ratios, limited access to mortgage finance, and punishing transaction costs have combined to make home ownership an increasingly distant dream, particularly for those without family wealth to fall back on.
“The latest data from the Office for National Statistics, published in September, paints a bleak picture. In London, the average property is now unaffordable even to households in the top 10% of earners. Across the South East, South West and East of England, only those in the highest income decile can afford the average home.
“Unsurprisingly, without a realistic market for new homes, investment in new sites and labour is being limited. To overcome these challenges, the Government could provide assistance for first-time buyers at the Budget in the form of a new equity loan scheme part-funded by home builders.”
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