Raising standards to protect homeowners
Terraces have 'street' appeal 21/11/06
NHBC's latest statistics show that terraced houses are being favoured over semi-detached and detached homes.
According to NHBC, whose warranty covers over 80 per cent of new homes in the UK, 18 per cent of new homes started in Great Britain during quarter three this year were terraced. This figure eclipses the number of semi-detached homes (14 per cent) that were started and for the first time equals the percentage of detached homes (18 per cent) that were built.
Areas in the North have seen the biggest increase in the proportion of terraced houses started by builders and developers in recent years. For example, in the North East region eight per cent of new homes started in 2000 were terraced, where as during the past six years this figure has more than doubled to 19 per cent.
Imtiaz Farookhi, NHBC's Chief Executive, said: "This is positive news for home buyers wishing to enter the market or move up the property ladder, as terraced housing creates a pool of potentially affordable family friendly new homes. Furthermore, building terraces will create a greater mix of housing type, balancing the current focus on multi-storey developments."
Additional statistics by NHBC for quarter three show that the average anticipated selling price of new homes started during the third quarter of 2006, increased on the same period in 2005. The average anticipated selling price of new homes in Great Britain was £190,000 during the third quarter of 2006, a five per cent increase on quarter three of 2005 (£181,000).
Based on actual selling prices, the proportion of new homes priced at over £150,000 went up to 75 per cent, an increase on the same period in 2005 (68 per cent).
First time buyers found their ability to buy dropped in the third quarter. NHBC's first time buyers' ability to buy index decreased by three points during the quarter to 66 (the figure for quarter two 2006 was 69). The index is based on a formula which takes into account the average cost of homes bought by first time buyers, average income and mortgage interest rates (from the Nationwide Building Society). The higher the index, the greater the ability to buy.
UK-wide figures (including the Isle of Man) show a total of 41,391 applications to start new homes during the third quarter of 2006, showing an eleven per cent decrease on the same period in 2005 (46,748). Of that total, 35,105 relate to private sector activity (i.e. excluding housing associations), showing a ten per cent decrease on the same quarter of 2005 (38,847).
NHBC UK figures (including the Isle of Man) show there were 39,362 new build completions during the third quarter of 2006, showing a three per cent decrease on the same quarter last year (40,394).
ends
Note to editors:
- The number of registrations overall for quarter three is lower than last year because registration volumes for the latter part of the quarter were below normal. This is largely as a result of recent changes and improvements to NHBC's registration process. Through the transition to this new process higher than usual volumes were registered in July and August, with lower volumes in September as registered builders/developers adapted to the changes. This temporary reduction in registration volumes in September is not a reflection on the market in general, and the cumulative figures for the quarter suggest that the market remains steady.
- NHBC statistics are based almost exclusively on information relating to its 20,000 (approx.) registered house builders who construct in excess of 80% of the new homes built in the UK. NHBC has published these figures in its `New House-Building Statistics' booklet for quarter three 2006.