NHBC statistics show that there were 37,762 applications to start new homes in the UK in the three months from February to April 2008 - a 27 percent decrease on the same three month period a year ago (51,465). Of that total, 28,492 related to private sector activity (i.e. excluding housing associations), showing a 32 per cent decrease on the same three month period in 2007 (41,736).

Housing association figures fell less sharply in the three months to the end of April, with applications totalling 9,270, a decrease of five per cent on the same period a year ago (9,729).

Imtiaz Farookhi, NHBC Chief Executive, says: "The drop in housing starts continues to reflect the difficult market conditions being experienced by house builders. Activity by private house builders was particularly low in April this year.

Our latest figures show that in April this year 8,443 new homes were started for private sale, the lowest number of starts in this sector, apart from December when activity is traditionally low, since our accessible monthly records began in 1986."

Additional figures for the three months from February to April 2008 show that the average number of daily sales of new homes in the UK was 452, a decrease of 18 per cent on the same period a year ago (554).

Ends

Note to editors:

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 new homes built in the UK and currently protects more than 1.7 million homes.