‘New house-building to drop almost 60% in 08-09’

Imtiaz Farookhi, NHBC Chief Executive, said: "Year to date figures for the financial year 2008/09 show NHBC has received just 73,807 applications from builders in the combined private and public sectors to build new homes and we anticipate a total of just 80,000 new home starts for the financial year.

"In light of these figures, which once again underline the critical state of the industry, we remain of the view that Government intervention, both on commissioning new starts, particularly through the HCA (Homes and Communities Agency) and other public sector agencies and programmes, together with improving liquidity in the mortgage market, is vital."      

NHBC statistics for the rolling quarter ending January 2009 reveal the second largest decrease in the number of applications from builders to start new homes in the private sector to date, although this fall was exaggerated by the break in house building activity during December.

NHBC statistics for the three months to the end of January 2009 also revealed:

*There were 14,738 applications to start new homes from the combined private and public sectors in the UK during the three-month period from November to January 2009 – 62% lower than the same three-month period a year ago (38,459);

*Of the 14,738 applications received by NHBC from November to January 2009, 7768 related to private sector activity (i.e. excluding housing associations) – 75% lower than the same three-month period a year ago (30,631); 

*Housing association figures for the three months to the end of January totalled 6970 – 11% lower than the same period a year ago (7828);

*New-build completions totalled 31,104 in the three months to the end of November – 33% lower than the same period a year ago (46,671);

*Average number of daily sales of new homes in the UK from November to January 2009 was 364 – 32% lower on the same period a year ago (538).

NHBC publishes a quarterly booklet of its new house-building statistics – to subscribe click here

Have your say on this story using the comment section below