Next few months pivotal in terms of new homes recovery

While individual monthly figures show considerable volatility, the next few months may be pivotal in terms of predicting the path of recovery in new homes supply.

NHBC chief executive Imtiaz Farookhi said: "Our figures show a drop in registrations during June. It is too early to establish whether this is cause for concern, it may be a sign that the housing market recovery, while not abating, is beginning to plateau short-term.

"In the longer term the demographics of UK population growth and the continuing under-supply of existing housing demand must require the country to build significantly more new homes. Shorter term factors such as uncertainty around planning reforms, the economic background and the outlook for employment, together with continuing issues with mortgage availability, may well combine to limit the scope and pace of this much-needed recovery in volume."

NHBC statistics for the rolling quarter April – June 2010 show:

* Private sector registrations were up 50% (at 19,977) when compared with the same period last year (13,328);

* Public sector registrations were 10,620 – 28% than the same period a year ago (8309);

* Registrations in the combined public and private sectors were 41% up on the same period in 2009 (30,597, compared with 21,637).

Have your say on this story using the comment section below