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Decline in house building levels could be halted by the Government's affordable housing boost

Public sector house building is declining, according to latest registrations figures from NHBC (National House Building Council), unveiled as Government announces measures to boost the housing market.

The number of new homes registered in the public sector was just 1,887 in October this year, 17 per cent lower than September (2,266). Compared with October 2010 (3,181), there has been a 41 per cent drop. 

Year-to-date registrations for new homes are consistent with last year, but a drop across both public and private sectors in October suggests that trend may not continue, according to NHBC.

NHBC Head of Affordable Housing, Mebhan Chowdery, said: "The total number of new home registrations this year is holding up compared with last year, but there has been a noticeable decline in the public sector in recent months compared to early summer.

"There is good news as contracts are now being signed under the new Affordable Homes Programme. Further, initiatives announced in the Government's Housing Strategy out today, and plans for a new infrastructure programme - Growing Places Fund - are welcome and well-timed news for social and affordable house building.

"Without a boost in this area there is the growing potential that declining registrations in the public sector will eventually have a knock on effect in the private sector, serving as a counterweight to any meagre recovery in the private sector and making it even more difficult to generate a platform for growth into 2012."

NHBC publishes a quarterly booklet of its new house-building statistics - subscribe here.

Note to editors:

NHBC statistics for October 2011 show that:

In October 2011, the number of new homes registered (7,781) was 22% lower than October 2010 (10,028) and;

  • 5,894 new homes were registered in the private sector, 14% down on October 2010 (6,847)
  • During the month, 1,887 new homes were registered in the public sector (compared with 3,181 in 2010 - a 41% drop)

For the rolling quarter August - October 2011 the number of registrations was 26,509, 9% down on the same period last year (29,015). Of these:

  • Private sector registrations in August - October decreased by 1% (19,692), compared with the same period in 2010 (19,971).
  • Public sector registrations in August - October decreased by 25% (to 6,817) when compared with the same period a year ago (9,044)

For calendar year to date the number of new homes registered (101,651) is 3% higher than the same period in 2010 (98,224)

  • Private sector registrations are up 4% from 65,830 in 2010, to 68,364 year to date in 2011
  • Public sector registrations are up 3% from 32,394 in 2010, to 33,287 year to date in 2011

Full regional breakdown of new homes registered August to October 2011 by region/country:

Region

August 2011 to October 2011

August 2010 to October 2010

England - Regions

 

 

North East

790

1,278

North West

1,867

2,290

Yorkshire & the Humber

1,767

1,739

West Midlands

2,367

2,097

East Midlands

1,878

2,155

Eastern

3,156

2,366

South West

2,884

3,015

Greater London

4,246

4,411

South East

3,587

5,627

Totals for England

22,542

24,978

Scotland - Councils

2,250

2,198

Wales - Unitary Authorities

1,042

989

Northern Ireland - Counties

649

846

Isle of Man

26

4

Totals for UK

26,509

29,015


Media contact at NHBC

Nadia Bedra or Tom Howard
nbedra@nhbc.co.uk, 01908 746 734
thoward@nhbc.co.uk, 01908 746 735

News Date: 21/11/11