In England, new house building starts in 2006/07 totalled 173,400 (down 6 per cent on 2005/06). Completions totalled 167,700 (up 3 per cent up on 2005/06).
In the quarter to March 2007, there were around 43,600 starts and 44,600 completions. Comparing the recent quarter to March with the equivalent period in 2006:
- Starts were down 9 per cent but this compares with an unusually high level in March 2006 quarter
- Completions were up 18 per cent
Regional Trends - Starts
Trends in starts have mostly flattened in the North and the Midlands, with the exception of the North West where starts have been declining since the end of 2006/07. In southern regions starts have tailed off but remain well above levels during 2000/01.
Completions
Completions in the North and Midlands mostly continue long term upward trends, except for the North West and the West Midlands where they have levelled off. Most southern regions maintain upward trends in completions apart from the South East where the trend has flattened recently.
The North East, Yorkshire and the Humber, East Midlands, East of England and South West currently show the highest levels of completions over the ten year period 1996/7 -2006/7.
Commenting on the figures, Kate Gordon, planning officer for the Campaign to Protect Rural England, said: "These figures are clear evidence that the planning system does respond to demand and is not an obstacle to development.
"How new development takes place needs to be properly agreed through the planning process, so that it takes advantage of opportunities to regenerate run down and derelict land and provide affordable homes, while safeguarding the countryside from unnecessary development."
Oliver Gilmartin, senior economist for the Royal Institution of Chartered Surveyors, said:
"An initial look at the housebuilding figures show Gordon Brown's pledge to raise house building levels has got off to a whirlwind start with the quarterly rise in houses completed up over 30 per cent on the previous three months. However, rising interest rates has meant that housing starts, a leading indication of future houses coming onto the market have fallen 7 per cent and are 9 per cent below year ago levels. With interest rates set to rise further again housebuilders may be wary that Brown's golden years may be coming to an end.
"Current housebuilding rates have persistently undershot government targets and incentives for stimulating housebuilding levels. The total shortfall in house building in Great Britain, between 1998 and 2006 is 313,000 and current builds per year remain well below the 209,000 needed every year just to keep up with the government’s estimates for household growth up to 2026. If this quarter's housebuilding levels are sustained in 2007 we would see almost 200,000 homes built in England this year, a significant improvement on the 161,300 homes built in 2006. Starts figures are not encouraging however with first time buyers likely to continue to suffer from tight market conditions and lack of available supply."
