The real cost of building an affordable home
Construction estimators in the UK are predicting the construction of an affordable house will cost between £50,000 and £100,000.
This could be the difference between a new home for a family of four and a modest two-bedroom flat.
Construction estimator Peter McAllister said that he expects the first home to be built in the next two years.
“This will bring in the cash, the construction company will have to buy the land, they will have got the finance, they’ll have got their house ready to go,” he told the BBC.
In a survey by the National Construction and Builders’ Association, there was a 20 per cent increase in the number of houses that are planned to cost less than £50m.
But the cost of the construction could also be quite high.
Mr McAllisters said that it was difficult to gauge the real cost.
Mr McAlliser said the real costs of construction could range from as low as £40,000 to as high as £120,000, depending on the size of the building.
“You could say if it is £50 million, you could have a house built for £150,000,” he said.
“But if you’re doing £100 million it could be as low a figure as £20,000.”
According to the NAB, most of the affordable houses built since 2007 were designed with low and medium incomes in mind.
The report said that the number one reason for the lack of affordability is the rising cost of social housing.
It also found that the average cost of new homes for a person in a social housing association was £34,400.
There were a number of factors behind the increase in prices, such as the introduction of the bedroom tax and the introduction in 2020 of the new social housing stamp.
However, Mr Mcallisters said there had been an increase in interest in building affordable houses in the last year.
“People are very passionate about this issue,” he explained.
“People are excited about the cost savings that it will bring to people.”
Construction costs are expected to continue to rise as more of the homes built are built.
Read more about affordable housing in England and Wales.
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