The number of new homes on which building work began dropped by 7 per cent to 157,550 in the year to September compared to the previous 12 months, government figures reveal.
However the number of new homes completed increased by 9 per cent over the same timeframe to 177,980, according to the Ministry of Housing, Communities and Local Government.
On a quarterly basis, new build starts were down by 11 per cent to 39,510 in the three months to the end of September compared to the same period in 2018.
Completions were up by 11 per cent to 46,000 over the same timeframe.
McBains construction consultancy managing director Clive Docwra says: “The government has set a target of delivering a million homes in the next five years, yet today’s figures show that the construction industry is way off meeting those rates on current trends.”
Docwra points out that while completions totalled close to 178,000, the industry needs to build more than 200,000 homes each year to meet the government’s goal.
He says: “Last month’s Queen’s Speech contained lots of detail on demand-side measures – such as first-time buyers being offered a discount on purchases – but nothing on the supply side.
“The government needs to set out how it intends to boost housebuilding and increase the supply of new homes needed to tackle the housing crisis, such as freeing up more land to build and cutting red tape on planning.”
Modular developer Project Etopia’s founder Joseph Daniels says: “While completions are up significantly on an annual basis, the latest quarter of housing starts is down by some margin.
“This points to the chilling effect that so much political and economic uncertainty had over the past year with aborted Brexit deadlines and gridlock in Westminster.”
He adds: “This should mean that now the mist has cleared, and with the wind in Britain’s sales once we leave the EU in a few days’ time, the pace of construction should pick up in the short term.
“This performance is also leaving government housing targets in the dust, as the industry has shown itself unable to put the accelerator down to deliver the homes necessary.
“More policy ideas are needed.”
