As of February 2017 planning permission has been granted by the local council for the construction of almost 3000 new homes in and around Truro. With permission in place building could start tomorrow!
In the last few years we have seen both Linden Homes and Taylor Wimpy take large sites in and around Truro and build quite substantial developments of new homes. While the government's housing minster is pushing the national agenda to build 1 million new homes between 2015 and 2020 the question I have to ask locally is how will this help the local housing market and is the demand there for these properties.
The housing market itself is built on the principle of supply and demand and generally speaking as long as demand is high and supply is either low or at a slow rate of growth, we will always see house prices rise. What all economists (and estate agents!) want is a steady level of house price increase in line with inflation, the cost of living and most importantly local wages. When prices rise faster than these other factors then the ratio of affordability and house prices gets wider and sooner or later the market stagnates (or starts to fall) as people struggle to afford to buy a home.
Currently the local market is on an upward curve as the city shows commercial growth, new jobs are being created, and the hospital and College continue to grow. Demand is high for both property to buy and property to rent, however I have been looking at what the local council planning department has been granting and the numbers stagger me.
Just a selection of what I found as approved by planning would include; Tolgarick Farm (Arch Hill) . 300 homes, Arch Hill . Further 415 homes, Higher Newham . 155 homes, Langarth Farm . 494 homes, Chacewater Hill . 62 homes, Shortlanesend . 140 homes, Tregolls Road (Waitrose site) . 90 homes, Bissoe Road 42 homes.
At the end of my research the number of new homes approved already reached almost 3000 and while realistically I would be confident that the home builders wont start building all of these immediately, the impact 3000 new properties could have on the local market in the next 3 years would be felt across the board.
I honestly hope that Truro continues to grow, jobs are created and the demand for housing continues to outstrip supply. The fear is that the developers make a mistake and we end up with too many properties coming to the market at the same time. If supply if high - what impact will this have on the average house price?