Housebuilding on the wane

Figures from the Department for Communities and Local Government (DCLG) show that building levels are falling, with housing completions in England falling by 12% in the first quarter of 2008.

This represents an 18% drop year-on-year. Housing starts were down 21% on the previous quarter and 24%; down on March 2007.

The number of housing starts was highest in the South East and lowest in the North East, accounting for 20% and 5% respectively.

David Stubbs, senior economist for the Royal Institution of Chartered Surveyors, said: “The figures show housebuilding firms dramatically reducing the number of properties they are starting to build in response to a weak market and excess inventories of unsold homes.

“Given the ongoing problems in the mortgage market and a weakening economy, the decline in housebuilding will surely continue. This promises to makes the Government’s pledge to build three million homes by 2020 a difficult one to keep.”