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Housebuilding rates failing to meet government targets

The number of new build homes started and completed continues to fall below government targets, according to new figures published by the Ministry of Housing, Communities and Local Government.

The report suggests the new build dwellings figures should be regarded as a leading indicator of the overall housing supply.

New builds slow to start

Annual new build dwelling starts totalled 157,550 in the year to September 2019, a 7 per cent decrease compared to the year to September 2018. During the same period, completions totalled 177,980, an increase of 9 per cent compared with last year.

On a quarterly basis, new build dwelling starts in England were estimated at 39,510 (seasonally adjusted) in the latest quarter, a 2 per cent increase compared to the previous 3 months and an 11 per cent increase on a year earlier. Completions were estimated at 46,000 (seasonally adjusted), a 2 per cent increase from the previous quarter and 11 per cent higher than a year ago.

“The government has set a target of delivering a million homes in the next five years, yet today’s figures show that the construction industry is way off meeting those rates on current trends.”

Clive Docwra

Managing Director, McBains

Housing association completions down by 14%

Private enterprise new build dwelling starts (seasonally adjusted) in the September quarter 2019 are up by 3 per cent on the previous quarter, and completions are up by 5 per cent. Starts by housing associations are 4 per cent lower compared to the last quarter, and completions down by 14 per cent.

Clive Docwra, Managing Director of construction consulting and design agency McBains, commented:

“Annual new build starts in the year to September 2019 saw a decrease of 7 per cent on the previous year, and while completions totalled close to 178,000, we need to be building more than 200,000 homes each year to meet the government’s ambitions.

“The government needs to set out how it intends to boost housebuilding and increase the supply of new homes needed to tackle the housing crisis, such as freeing up more land to build and cutting red tape on planning.”

 

Article written by Ella Tansley

Source: Twin FM

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Number of new build homes started dips by 11%

The number of new build homes started across England fell by 11% in July to September 2019 compared with the same period a year earlier, Government figures show.

Some 39,510 new builds were started during the quarter, down from 44,480 between July and September 2018.

But the latest total was up 2% compared with the previous three months. Between April and June last year 38,860 new build homes were started, according to figures from the Ministry of Housing, Communities and Local Government.

The figures also showed that 46,000 new build homes were completed between July and September last year – 11% higher than the same period in 2018.

New home completions were also up by 2% compared with the previous quarter.

The number of new house builds was strongly affected by the economic downturn from the start of 2008, when there was a period of rapid decline to a trough in 2009.

From 2013 to 2018, starts and completions grew again gradually.

But the report said that more recently, while completions have continued to grow, there has been a slowdown in starts.

It added that there are relatively high rates of new build starts in local authorities stretching from west of the London commuter belt across the Midlands to East Anglia.

Areas with relatively high rates of completion include Dorset and south Derbyshire, the report said.

By Vicky Shaw

Source: Yahoo Finance UK