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Number of new houses being built plummets nearly 60%
by liamssoft | June 20, 2008 at 01:54 pm | 278 views | 6 comments
UK: Until mortgages become more affordable and available there will be less houses being built even with the Governments target of 2m new homes by 2016. Thousands of builders are being laid off as the housing slump starts to bite in earnest...
The number of new houses being built has plummeted by nearly 60% since this time last year as tighter mortgage lending conditions put off potential home buyers.
The National House Building Council, which has 20,000 registered house builders on its books, said there were 6,890 new starts in the private sector in May, compared with 15,713 this time last year. This represents a drop of 56%.
The number of new public sector houses being built is also decreasing with 2,699 houses being built this year, compared with 4,306 in May 2007. Sixty percent of social housing is built by private developers.
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June 20, 2008 at 01:54 pm by liamssoft, 278 views, 6 comments
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Comments (6)
at 13:19 on June 21st, 2008
liamssoft, I like this story. It's good stuff.
at 13:47 on June 21st, 2008
Many thanks Jordan
at 02:27 on June 22nd, 2008
liamssoft, I like this story. It's good stuff..
at 13:33 on June 22nd, 2008
Many thanks itslefty
at 00:52 on June 23rd, 2008
liamssoft, I like this story. But it's bad news for people who have slowly saved up their deposits. I can't understand why public housing has also fallen off: surely the money is still in the housing budgets, and the waiting lists are as strong as ever. I would have thought now was the time to increase public sector housing as a way of encouraging the economy a little. But who are we mortals to question the wisdom of housing staff?
Gerry
at 05:05 on June 23rd, 2008
Many thanks Gerry, a percentage of new build is allocated for social housing, anything from 50% to 10%, if the builders do not build the houses then the social housing also does not get built. The development corporations have thousands of sites with social housing planning permission. The problem is the builders make little profit on social housing, their profit is in the private section, therefore there is no incentive to build when there are no private buyers. With house prices predicted to fall by up to 50% over the next 4 years there is good reason for not building or buying.