Q2 2005 new house building statistics UK 14/02/06

In Great Britain the average anticipated selling price of new homes started during the second quarter of 2005, decreased by two per cent on the same period in 2004. First time buyers found their ability to buy fell in the second quarter. NHBC, the leading new home warranty and insurance provider for new homes in the UK, has published these figures in its `New House-Building Statistics' booklet for Quarter two, 2005.  The average anticipated selling price of new homes in Great Britain (started by NHBC registered builders) was £171,000 during quarter two of 2005, a two per cent decrease on quarter two of 2004 (£174,000). Based on actual selling prices, the proportion of new homes priced at over £100,000 went up to 95 per cent, an increase on the same period in 2004 (92 per cent).

NHBC's first time buyers' ability to buy index decreased by 12 points during the quarter to 57 (the revised figure for quarter one, 2005 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.

Imtiaz Farookhi, Chief Executive of NHBC, says:

"Our quarterly statistics show that the number of applications to start new homes in April, May and June in both the private and public sector increased when compared to the same period last year. In addition, while there has been speculation concerning a drop in house building activity, our figures reveal that 93,677 new homes have been started so far this year, showing virtually no change on the same period last year."

UK-wide figures (including the Isle of Man) show a total of 47,369 applications to start new homes during the second quarter of 2005, showing a four per cent increase on the same period in 2004 (45,375). Of that total, 39,447 relate to private sector activity (i.e. excluding housing associations), showing little change on the same quarter of 2004 (39,457). Housing association starts totalled 7,922 - an increase of 34 per cent on quarter two of 2004 (5,918).

The figure for the average daily sales of new homes in the UK for the second quarter of 2005 was 544, a decrease of 11 percent on the same period in 2004 (611).

Quarter 2 2005 Regional Figure

Note to editors:

• NHBC statistics are based almost exclusively on information relating to its 19,000 (approx.) registered house builders who construct about 85% of the new homes built in the UK. As such they represent a unique source of detailed, up-to-date information on new home construction and the house building industry.