There were an estimated 29,980 seasonally adjusted housing starts in England in the June quarter 2009, up 63 per cent on the previous quarter but nine per cent lower than the June quarter 2008. This is the second successive quarterly rise in seasonally adjusted housing starts.
Private enterprise housing starts (seasonally adjusted) were 73 per cent higher than in the March quarter 2009, but 12 per cent lower than in the June quarter 2008.
Annual housing starts figures for England continued to decline. They totalled 87,190 in the 12 months to June 2009, down 41 per cent compared with the 12 months to June 2008 and 53 per cent below their 2005-06 peak.
Housing completions in England were up by 24 per cent to an estimated 39,320 (seasonally adjusted) in the June quarter 2009 compared to the previous quarter. Compared with the June quarter 2008, completions were up by seven per cent.
Private enterprise housing completions (seasonally adjusted) were 27 per cent higher in the June quarter 2009 than the March quarter 2009, and one percent higher than in the June quarter 2008.
Annual housing completions in England totalled 136,140 in the 12 months to June 2009, down by 16 per cent compared with the 12 months to June 2008.
RICS senior economist Brigid O'Leary says: "This morning's release of second quarter figures for housebuilding in England provides further evidence that the dramatic scaling back in housebuilding activity since the onset of the credit crunch has probably run its course. A second consecutive increase in housing starts in the private sector seemed likely after, earlier in the year, some major housebuilders noted that their inventory was being run-down and that they were considering restarting some mothballed projects. Significantly, housing starts by Registered Social Landlords (RSLs) rose by 34 percent between Q1 and Q2, taking them to the highest level since 1997Q2. That suggests that the increased funding for RSLs, provided by the Government, is indeed having a significant impact on building activity.
"It was encouraging to note that housing completions rose to 39,320, the highest level since 2008Q1 and above the average quarterly completions rate (of 37,300) since 1997. However, completions may fall back again in coming quarters, reflecting the recent low levels of housing starts. Even if that level were maintained, it still suggests an annualised rate of completions of only 160,000. That is well below the 240,000 annual increase in the housing stock that the NHPAU estimates is required to keep pace with demand over the next two decades."
