Social housing on a high as private starts decline

Sept. 1, 2008
Private housebuilding rates are continuing to fall as social sector build rates have concurrently risen significantly, according to latest housebuilding figures from National Statistics. The government’s independent statistical research body reported a 19% year-on-year fall in starts during the second quarter to 33,400. But while private sector starts fell by almost a third during the quarter, housing association starts rose by 56% – reaching their highest quarterly level in 11 years. The records highlight the growing focus on the social sector as a route to easing the undersupply gap at a time when private developers are cutting production levels by around 40% in response to falling sales.<br><br>Housebuilders are also increasingly unloading unsold stock to the social sector, aided by the establishment of a national Housing Corporation-based “clearing house” to speed up social sector acquisitions of tranches of 500-plus units. The figures illustrate the continuing decline in annual housing starts – totalling 147,500 during the year to June 30 – down by 12% on 2007 and by 20% on the 2005/06 peak. Communities and Local Government (CLG) gave a pragmatic response to the statistics’ indication of the size of the gap between reality and the government’s 240,000 homes per annum target, …

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