Flats Continue To Rise 29/11/07

NHBC's latest statistics show that the principal housing type being started in England, Wales and Northern Ireland are flats and maisonettes. With the level of high rise buildings increasing in recent years, according to NHBC's statistics, flats and maisonettes made up more than half (51 per cent) of new homes started in England during quarter three this year - almost double the combined percentage of semi-detached and detached homes started (28 per cent).

In Wales, NHBC statistics show that the percentage of flats and maisonettes started in the third quarter of this year rose from 34 per cent in the second quarter to 46 per cent, more than double the percentage of detached homes started (21 per cent).

In Northern Ireland all three-quarters this year have experienced a significant rise in the number of flats and maisonettes when compared to 2006. NHBC statistics show that flats and maisonettes constituted 29 per cent of all new homes started in quarter three 2007 - five percentage points higher than detached homes started and nine percentage points higher than semi-detached homes started during the quarter.

Quarter three figures for Scotland show flats and maisonettes rivalling detached houses - 37 per cent compared with 39 per cent respectively.

Imtiaz Farookhi, NHBC's Chief Executive, said: "While flats and maisonettes have been the dominant housing type in England since 2003, this year for the first time, we are seeing flats and maisonettes exceed both the number of detached homes and semi-detached homes in Northern Ireland and Wales."

Additional statistics by NHBC for quarter three 2007 show that the number of applications to start new homes increased when compared with figures for the same quarter last year.

50,250 applications were made to build new homes in the UK, showing a 21 per cent increase on the same three month period in 2006 (41,399). Of that total, 40,876 related to private sector activity (i.e. excluding housing associations), showing a 16 per cent increase on the same quarter of 2006 (35,105). Housing association starts totalled 9,374 - an increase of 49 per cent on quarter three of 2006 (6,294).

Based on actual selling prices, during the third quarter of 2007 the proportion of new homes in Great Britain priced at over £150,000 went up to 77 per cent, an increase on the same period in 2006 (71 per cent).

First time buyers found their ability to buy dropped again in the third quarter of this year. NHBC's first time buyers' ability to buy index decreased by six points during the quarter to 35 (the figure for quarter two 2007 was 41). 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.

The average number of daily sales of new homes in the UK for quarter three 2007 was 525, a decrease of five per cent on the same period in 2006 (551).

Note to editors:

• NHBC statistics are based almost exclusively on information relating to its 20,000 (approx.) registered house builders who construct more than 80% 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.
  
• NHBC is the leading warranty and insurance provider for new homes in the UK. It was established 70 years ago as a non-profit distributing company. NHBC's primary purpose is to help raise standards in the new house-building industry and provide consumer protection for new house buyers. NHBC's ten year 'Buildmark' warranty covers more than 80% of homes built in the UK and has protected 6 million homes.