Housing Starts Drop in First Quarter 12/05/08
Statistics released today by NHBC reveal that the number of applications from house builders to start new homes in the UK decreased by almost a third year-on-year during the first quarter of 2008.
NHBC statistics show that there were 37,839 applications to start new homes in the three months from January to March 2008 - a 30 per cent decrease on the same three month period a year ago (53,717). Of that total, 29,137 related to private sector activity (i.e. excluding housing associations), showing a 34 per cent decrease on the same period in 2007 (43,933). Housing association registrations also decreased during the first quarter of this year with applications totalling 8,702 - a decrease of 11 per cent on the same period a year ago (9,784). Imtiaz Farookhi, NHBC Chief Executive, says: "The figures for the first quarter of this year clearly reflect a toughening market. The biggest decreases in new home starts were seen in Northern Ireland and the North East, where figures showed a year-on year decrease of 65 and 60 per cent respectively for the quarter." The total number of completions also fell during the first quarter of 2008. NHBC statistics show new build completions totalled 35,205 in the three months to the end of March - 14 per cent lower on the same period last year when 40,996 new homes were completed. First time buyers found their ability to buy recovered slightly in the first quarter of 2008 from its second ever lowest recorded level in quarter four 2007. NHBC's first time buyers' ability to buy index increased by 13 points during the quarter to 50 (the revised figure for quarter four was 37). 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. Additional figures for quarter one 2008 show that the average number of new homes sold each day in the UK was 482, a decrease of 26 per cent on the same period a year ago (650). Ends FOR A BREAKDOWN OF NEW HOMES REGISTERED BY REGION / COUNTRY PLEASE E-MAIL mblamey@nhbc.co.uk · NHBC is the leading warranty and insurance provider for new homes in the UK. It was established more than 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 being built in the UK and has protected almost 7 million homes. · NHBC statistics are based almost exclusively on information relating to its 20,000 plus 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.
