View more on these topics

New build starts up 15 per cent, says DCLG

Home-House-New-Build-700.jpg

In the year to March, annual new build dwelling starts were up 15 per cent compared to the same period last year, according to statistics from the Department for Community and Local Government.

On a quarterly seasonally-adjusted basis, new build dwelling starts in England were estimated at 43,170 in the latest quarter, a 3 per cent increase compared to the previous 3 months and 21 per cent increase on a year earlier, the DCLG says.

Completions were estimated at 39,520 (seasonally adjusted), 9 per cent higher than the previous quarter and 21 per cent higher than a year ago.

Annual new build dwelling starts totalled 162,880 in the year to March 2017.

During the same period, completions totalled 147,960, an increase of 6 per cent compared with last year.

Private enterprise new build dwelling starts were 4 per cent higher in the March quarter 2017 than the previous quarter, and completions were 12 per cent higher. Starts by housing associations were 2 per cent higher compared to the last quarter and completions 5 per cent lower.

All starts are now 152 per cent above the trough in the March quarter 2009 and 12 per cent below the March quarter 2007 peak. All completions are 57 per cent above the trough in the March quarter 2013 and 18 per cent below their March quarter 2007 peak.

Mortgage Advice Bureau new homes director Andy Frankish says: “As expected, whilst the house building in England report from DCLG released today paints a steady picture of the current house building sector with moderate growth of a 3 per cent increase in the last quarter in new build starts and a 15 per cent increase in starts year on year, together with an increase in completions of 9 per cent on the previous quarter and a 6 per cent rise in completions year on year, we are certainly still a long way away from the new build targets set by the last administration.

“Yes, the latest figures do indicate a marginal increase and, on reviewing figures over the previous few years we can see the signs of recovery starting in 2013, demonstrating the impact of the introduction of Help To Buy, which could suggest an element of cautious optimism that the industry has perhaps ‘turned the corner’ following the trough of 2009, but if we are to reach the 200,000+ new build homes needed each year in England, there is still more momentum required in the sector on what is seen by many as a slow road to recovery.

“The fact that we have had no commitment to the Help to Buy Equity Loan scheme beyond 2021 is also likely to start impacting on developers’ decisions to purchase land past this point, and may even have an impact on new starts over the coming quarter, but we won’t feel the real impact of this for some months to come.

“This is likely to continue to be a hot topic and a key manifesto subject and cause for further debate in the next two weeks, with cross-party consensus on the need to tackle the housing crisis as we approach the 8 June Election date.”

Recommended

My Opinion: The hurdles new build needs to clear

High rents and low interest rates are positive for new-build but developers must build good properties at realistic prices Having worked in the new-build market for more than 15 years, I have seen clear evidence that a significant proportion of homebuyers strive to buy a brand-new property at some stage in their life. Some like […]

My Opinion: New builds should not shut out brokers

Choosing a new-build property does not remove a buyer’s need for advice on financial options and potential benefits Many people dream of owning a brand-new home but choosing a new-build property does not remove a buyer’s need for advice from a broker. From structure and energy efficiency to the different government schemes in place, there […]

Money-Coins-Pound-Currency-Close-up-700x450.jpg

Skipton cuts rates by up to 0.84% on new build residential

Skipton Building Society is cutting rates by up to 0.84 per cent on its new build products. The lender’s two-year fixed rate new build range now includes a fee-free 2.75 per cent to 90 per cent LTV loan and a 2.35 per cent to 90 per cent LTV mortgage with a £995 completion fee. Skipton’s […]

Europe: banking on a recovery

Neptune video: Europe — banking on a recovery

Arguing that the eurozone crisis is over, watch Rob Burnett, head of European equities at Neptune, discuss the sectors that he’s investing in to harness the recovery. 

In the video, Burnett addresses the following: 

• The primary drivers of the eurozone’s economic recovery
• The turnaround in individual countries’ current accounts
• Sectors best positioned to harness the recovery, without offering undue exposure to risk

Newsletter

News and expert analysis straight to your inbox

Sign up