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Friday 19th of December 2008
December 16, 2008

New housing starts lowest since 1924


by Gill Montia
New housing starts lowest since 1924

The Construction Products Association (CPA) and Ernst & Young, which jointly produce a quarterly barometer of the construction sector, have reported that the number of homes being built in the UK has fallen to its lowest level since 1924.

Housing developers hit by plummeting sales have been mothballing new projects and so far this year housing starts are down to 135,000, compared with 203,500 in 2007.

While the figure for 2008 is above the 1924 record low of 87,000, CPA chief executive, Michael Ankers, warns that the situation has deteriorated significantly in the last few weeks and is calling for increased government investment in the sector.

Mr Ankers adds that there are fears that homebuilding will grind to a virtual standstill in the New Year.

Government efforts to kick-start the market have so far failed to overcome the lack of confidence and shortage of mortgage funding that have been instrumental in the UK’s housing market crash.

Latest figures from the Council of Mortgage Lenders show that in October, lenders approved 39,900 loans for house purchases, down 52% on a year earlier.

Meanwhile the Government’s target of three million new homes by 2020 looks unattainable.

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Story link: New housing starts lowest since 1924


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Tags: 1924, , , Construction Products Association, , Ernst & Young, , , lowest

 

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