As banks report a new surge in house prices, housing completions fall to a new low
Government figures released today reveal Britains housing undersupply crisis is worsening rapidly.
Although major lenders have raised their forecasts for annual house price increases of 24 per cent over the year, the number of private new homes started during the first eight months of this year has increased by less than one per cent over last years historic low.
With household growth running at 220,000 per annum against total housing completions of just over 160,000, the UKs housing deficit has worsened considerably.
The number of new private homes started in the first eight months of 2001 was just 112,100. For the first eight months of this year the total was just 113,100 an increase of 0.9 per cent.
Pierre Williams, spokesman for the House Builders Federation, said: Total housing completions last year were at their lowest peacetime level since 1924 a total of 162,000 compared to household growth of 220,000. The year also delivered a shocking new statistic that for the first time on record that there were more households than dwellings.
In June this year the Government admitted for the first time what economists and housing market experts have known for a long time that the growing imbalance between supply and demand is a key factor in long-term house price inflation.
That one of the worlds wealthiest nations does not have sufficient homes to house its own population is nothing short of a disgrace. Although the government has promised to tackle this problem, these figures show that little, if anything, has yet been done to ensure local planning authorities allow sufficient homes to be built.
Ends
Editors Notes:
A Summary of housebuilding statistics from the Office of the Deputy Prime Minister follows below:
Housebuilding: August 2002
In August 2002, it is provisionally estimated that 14,600 dwellings were started in Great Britain compared with 15,100 in August 2001. Completions numbered 12,700 compared with 12,600 the previous year.
In the latest three months 45,900 dwellings were started, down 5 per cent on the same three months a year ago, while total completions at 41,500 were up 1 per cent on the same three months a year ago.
Seasonally adjusted comparisons (see Notes to Editors)
In the latest three months there were an estimated 42,800 total starts, down 10 per cent on the previous three months, and down 4 per cent compared with the same period a year ago. On the same basis of comparison private enterprise starts were 38,000, down 10 per cent on the previous three months and down 7 per cent compared with a year ago.
In the latest three months, completions totalled 41,100, down 4 per cent on the previous three months but up 3 per cent on the same period last year. Private sector completions were 36,500 in the latest three months, down 3 per cent on the previous three months, but up 5 per cent on the same period a year ago.
Figures for England show larger falls than those for Great Britain. Total starts, 34,000 for the last three months, were down 14 per cent on the previous three months and down 7 per cent on the same period a year ago. Total completions, 32,300 for the last three months, were down 7 per cent on the previous three months and up 1 per cent on the same period a year ago.
For a full report including tables and graphs along with explanatory notes to editors please refer to the ODPM website; www.odpm.gov.uk/news