NHBC welcomes ‘mild recovery’ in new house builds

Although NHBC figures show that house-building activity is still extremely low compared to the same three month period a year ago, the drop in applications to build is becoming less pronounced.  NHBC figures for the three months to the end of May show a 43% reduction in the number of applications compared to the same period a year ago, while in the three months to the end of March and April 2009, the year-on-year drop in applications was 57% and 53% respectively.     
        
Imtiaz Farookhi, NHBC Chief Executive, said: "NHBC’s latest figures point to further improvements in house-building production, albeit from an extremely low base.

"Any recovery is likely to be fragile in the short term and volumes in the next few months will be key in determining if this recovery is sustainable. The significance of these figures is that they suggest we may now have passed the lowest point in housing production for the current cycle." 

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

– Of the 19,286 applications to start new homes in the combined private and public sectors during the three months to the end of May, 11,062 were related to private sector activity (i.e. excluding housing associations) – 56% lower than the same three-month period a year ago (24,917)

– Public sector figures for the three months to the end of May totalled 8,224 – 10% lower than the same period a year ago (9,165).

– New build completions in the combined private and public sectors in the UK totalled 30,104 in the three months to the end of May 2009 – 25% lower than the same period a year ago (40,271).

– The average number of daily sales of new homes in the UK from March to May 2009 was 332 – 26% lower than the same period a year ago (452).

NHBC publishes a quarterly booklet of its new house-building statistics – to subscribe visit www.nhbc.co.uk

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