New housing development starts in Q4 2007 were down by 10% on the same period in 2006, according to figures released by the Department for Communities and Local Government.
In the final three months of the year, there were 37,900 starts in
This has continued the downward trend that began in Q3 2006, according to the DCLG.
However, completions of new homes numbered 48,500, up 15% on the same period in 2006, and representing the highest number of completions in a December quarter since 1988.
Completions for 2007 stood at 174,900, the highest level in 18 years.
Jennet Siebrits, head of residential research for CBRE Residential said the decline in house building could be attributed to a number of factors, including “empty” planning permissions, whereby the Section 106 requirements take too long to agree; rising build costs, which has been rising at double the rate of inflation; and the steep rise in land values.
CBRE said that the negotiation behind the average Section 106 agreement in
Siebrits said: “The decline in house building, as shown by the DCLG’s figures, confirm the government’s target to build three million new homes by 2020 is under threat.
“We expect the slow down in starts over the past quarter will continue this year due to the tightening of mortgage lending and concerns about house prices.”
However, Siebrits said that the reduced housing supply will prevent house prices from crashing, and predicted a house price increase of 3% through 2008 across
