Twitter Facebook RSS FEEDS

Housing starts fall to lowest post-war level

Tuesday, 17 June 2008 6:35 AM

The supply of new-build properties started in the UK has fallen to the lowest level since 1945, according to the Construction Products Association (CPA).

Research from the organisation - which represents the UK's manufacturers and suppliers of construction products - finds there were little more than 147,000 new housing starts in Great Britain this year - a fall of 27 per cent from the levels in 2007.

Furthermore, private sector housing starts are forecast to be down by 30 per cent to the lowest level since 1992, while the social housing programme is failing to grow in line with government's plans for 45,000 new homes a year by 2011.

The research supports that of the Office for National Statistics (ONS), which finds new-build property starts were severely depressed in April.

CPA forecasts now expect the construction industry as a whole to shrink by 1.3 per cent during the course of 2008.

This is despite lucrative infrastructure contracts - including the Building Schools for the Future programme and projects for the 2012 London Olympics - bolstering demand.

Growth in these sectors is, however, more than outweighed by the decline in the housing market, a sharp fall in investment in new industrial buildings, and reduction in the repair and improvement to existing social housing.

"The impact on the new build housing market has been more severe than any of us anticipated," said Michael Ankers, chief executive of the CPA.

"To be starting fewer new homes than at any time over the last 60 years illustrates the scale of the problem we now face, especially given recent reports from people like Kate Barker that we needed to increase the number of houses that we build.

"Unless something is done urgently to address this problem, the capacity in the industry will be cut to a level which will take a long time to build up and it will not be able to meet the inevitable pent up demand for new housing," added Mr Ankers.

Government targets seek the construction of two million new homes by 2016, with a million carbon-neutral properties added by 2020.

However, these targets appear compromised by the continued downturn in the UK property market.

"We have been warning for months of the dangers of allowing this downturn to continue," said Stewart Baseley, executive chairman at the House Builders' Federation (HBF).

"Today's report is further evidence of the urgent need to get some confidence and fluidity back into the housing market.

"If the government wants to deliver the homes the country needs, and to avoid the housing market dragging the wider economy into recession, it must act now."

Chris O'Toole

Related stories

Construction site at sunset

Fall in housing fuels slump in construction orders

Orders for public and private housing both down in second quarter as construction industry faces up to worst prospects in 30 years.

 UK property front door open

Mortgage lending at lowest level in over a decade

The monthly number of home loan approvals is half that of the late 1990s, and the market could remain tough for some time, say experts.
Grant Shapps said that the HCA housing figures are normally only of interest to "the industry". Photo:Getty Images

Shapps comes under fire on housing starts

Grant Shapps faces accusations of "misleading" the public over the housing crisis.

 Today's HCA figures are potentially embarrassing for Grant Shapps.

Affordable housing starts down 97 per cent in a year

Affordable housing starts in England are down over 97 per cent in the last year according to figures released today by the homes and communities agency.
Hometrack said a combination of the low turnover and realism over pricing was supporting the market.

Home sales set to fall to lowest for 40 years

Average private sector home changing hands only once every 26 years, says Hometrack.

Moneyfacts: Mortgage rates drop to lowest level in a year

Moneyfacts: Mortgage rates drop to lowest level in a year

It is believed the market will become more competitive over the coming months.
Halifax says low interest rates likely to keep house prices stable despite weak economy but warns of uncertainty over Eurozone. Image: Thinkstock

More of the same for housing market in 2012

Halifax says low interest rates likely to keep house prices stable despite weak economy but warns of uncertainty over Eurozone.

Property sales fall back to June 2009 levels and risk that worsening economic news could start to have bigger impact on market. Image: Thinkstock

Economic gloom darkens housing market mood

Property sales fall back to June 2009 levels and risk that worsening economic news could start to have bigger impact on market.
Matt Griffith volunteers for PricedOut, a first time buyer campaign group.

Comment: Housing strategy leaves "huge mess" for next generation

Matt Griffith of PricedOut argues that whilst the government's housing strategy is a start, there is still a long way to go if the government is to avoid worsening the generational housing gap.

 Service men and women to get package of help to buy homes or apply for social housing. Image: Thinkstock

Government pledges housing help for heroes

Service men and women to get package of help to buy homes or apply for social housing.

Search property

Headlines

Directory

Alaris

Alaris Logo
Alaris specialise in quality Bathrooms and Kitchens along with many other unique products for your home. The range of kitchens, kitchen worktops and bathrooms is extensive and the highest quality so you are sure to find what you want. New bathroom furniture, bathroom suites, taps, showers and cabinets are added regularly.

Bathrooms365

Bathrooms365 Logo
Bathroom365 supply all areas of your new bathroom - leading-edge designed bathroom suites, stylish bathroom taps and showers, all styles and forms of shower enclosures and a vast collection of bathroom furniture.

Beds Direct

Beds Direct Logo
Whether you've just moved into a property and need to furnish it or just fancy having something new to sleep on, Beds Direct offer you a wide array of beds to order online or via the telephone.

Fitmykitchen

Fitmykitchen Logo
Fitmykitchen are specialist suppliers of kitchen appliances, sink taps, waste bins and furniture. So whatever you want from kitchen sink taps to waste bins look no further than fitmykitchen, UK, the specialist suppliers of kitchen appliances, stainless steel sink taps, waste bins and kitchen furniture.

MyStampDuty

MyStampDuty Logo
We help people buying property all over the UK to minimise Stamp Duty Land Tax on residential and commercial property. If you are looking at purchasing a new home or business premises over £500,000, contact us today by completing the form on the right

Oak Furniture Land

Oak Furniture Land Logo
For hardwood furniture, including Solid Oak, Mango, Mahogany, Sheesham, Acacia, Ash and Birch, look no further than Oak Furniture Land.

Propertywide

Propertywide Logo
Propertywide.co.uk is Countrywide plc's dedicated property website. Created to provide online access to all our estate agency, lettings and property related services, Propertywide.co.uk has been designed with the consumer at heart.

The 21st Century Radiator Company

The 21st Century Radiator Company Logo
Welcome to 21st Century Radiator Company. We supply a stunning range of traditional reproduction high quality cast-iron radiators and cast-iron baths. All our cast-iron radiators and cast-iron baths are brand new, fully tested and guaranteed for ten years.

Rated People

Rated People Logo
Whatever type of home improvement or garden remodelling project you have, Rated People can help you to identify the right tradesmen for the job in a way that is quick, easy, convenient and, as it is based on real-life recommendations, trustworthy.

Residential Land

Residential Land Logo
If you are looking for short or long term rentals in Central London, Residential Land have a portfolio of over 1200 flats and houses in the best postcodes across the Capital.

Simply Bedrooms

Simply Bedrooms Logo
Simply Bedrooms, a part of Sleepwell Bedrooms Ltd, supplying quality beds, wardrobes, sliding door wardrobes and bedroom furniture at low prices and great service, London and Home Counties Specialists.

Door Handles UK

Door Handles UK Logo
Door Handles UK is the UK's largest online range of Door Handle accessories, Door Hinges, Locks and Latches and so much more and all at genuine internet prices. We have a wide range of Chrome, Brass and Glass Crystal Mortice door knobs in both traditional and contemporary designs, whatever your taste and budget you will find a design to suit.

Woodlands Furniture

Woodlands Furniture Logo
We are an established family business situated in rural Herefordshire specialising in beautiful handcrafted classic reproduction furniture. Our comprehensive ranges are readily available from stock.

Join our directory aboutproperty.co.uk

Twitter

Join the conversation at #aboutproperty

Directory articles

Why increasing amounts of people are opting for house shares

London is an expensive place to live, however, house shares offer you the opportunity to enjoy the hustle and bustle of the capital for a fraction of the price you would pay to live on your own, making them a cost-effective way forward.

Why sliding door wardrobes are the best choice for small spaces

When bedroom space is at a premium, you need to be creative with the furniture you invest in. In terms of the wardrobe, you may want to consider those with sliding doors, as they are the most practical in small bedrooms thanks to the doors.

The durability of mahogany furniture is ideal for the office

For office-based businesses it is vital to invest in high-quality furniture that is both practical and comfortable to use. While there are many products to choose from, the benefits on hand with items made from mahogany mean it is an option you should be certain to consider.