Demand for new homes down by 27%

Thursday, 01, May 2008 01:28

Demand for private new-build residential property plummeted during the first quarter of 2008, according to the latest information from the Office for National Statistics (ONS).

When compared to the last three months of 2007, demand for new homes was down 27 per cent, and was down 36 per cent when compared to the same period last year.

As a result demand for newly constructed property as a whole dipped eight per cent.

The ONS finds demand for new construction fell from 8.3 million in the fourth quarter of 2007 to 7.7 million during January to March this year.

Some £420 million was spent on private housing during the March, down from in £507 million February and £420 million in January.

In total £2,528 million was spent on construction in March this year. Again this was down from the £2,737 million spent in February.

The news follows an announcement last week from home builder Persimmon that profits at the organisation had fallen 24 per cent, and consequently was suspending all new building work.

This is the third ONS First Release on Orders for New Construction following the transfer of responsibility for construction output, employment and new orders statistics from the Department for Business, Enterprise and Regulatory Reform to the Office for National Statistics on 1st March 2008.

The construction industry, which accounted for 5.9 per cent of UK gross value added in 2006, covers Section F of the Standard Industrial Classification 2003.

Chris O'Toole