Housebuilding activity has halved, according to latest figures from the NHBC, which show that 20,972 applications were made to build new homes during the second quarter of 2008 – just 49% of 2007’s figure of 42,485. Starts during the year to date are now down by 42% on 2007. The downturn was most pronounced in the north west and west midlands, where applications have declined by 58% and 57% respectively. London bucked the trend, with an 8% year-on-year increase in applications during the three month period.<br><br>Total completions – both private and social sector – have fallen to 44,548 homes – down 12% year-on-year during the second quarter, and a more severe drop is expected to follow as the downturn in starts feeds through. “Latest figures show that the effect of the downturn in lending and the pressure on house prices is continuing to impact heavily upon the private housebuilding sector,” said NHBC chief executive Imtiaz Farookhi. Volume housebuilders have restructured their businesses in recent weeks, slashing staff and overheads to reflect their reduced production activity. Redrow and Bovis both cut 40% of their employees – 540 and 400 respectively, while Barratt axed 1,200 positions, Taylor Wimpey axed 900 and Persimmon …