The number of applications to start new homes fell by almost 50% year-on-year during the period May to July, figures from the National House-Building Council (NHBC) have revealed.
Applications fell by 47% from 52,907 to 28,086 over the three months, with private sector activity falling 58% to 17,835 starts. Housing association starts were down 5% to 10,251.
Completion rates also dropped off during the period, down 15% to 42,875.
NHBC said the recently announced measures to kick-start the housing market are a welcome move, but added a cautionary warning to policy makers.
“The success of these measures will be short-lived unless urgent action is taken to increase mortgage lending by improving liquidity in the mortgage market, so that finance deals will be more readily available for buyers,” said NHBC chief executive Imtiaz Farookhi.
For more industry reaction to the government’s plans for the housing market, see the next edition of TTJ.
