The number of new homes built in England during 2019 has surpassed a previous 2007 high to reach 178,790, but experts predict a substantial drop this year.
Official figures released today by the Office for National statistics show that the number of homes completed in England exceeded the last high of 176,640 13 years ago.
The data follows a gloomy construction sentiment poll from the Royal Institution of Chartered Surveyors yesterday.
In Wales 6,070 new homes were completed in 2019, which was slightly higher than the previous year, but below levels seen between 2014 and 2017.
In Northern Ireland 7,440 homes were completed last year, down slightly on 2018, but higher than levels achieved between 2010 and 2017.
Data on total housebuilding in Scotland during 2019 not yet available.
Previously published data for the whole of the UK only covers the 2018/19 financial year, during which there were 203,870 completions.
However, experts are warning that the impact of lockdown and social distancing could result in a sharp fall in housebuilding.
Design consultancy Barton Willmore says that if housing delivery follows the path seen after the last financial crisis it could drop to 150,000 by 2024/25 – just half the target number of 300,000 a year set by the government.
QC Christopher Young says: “A recent inspector’s decision suggests the effect of covid-19 would be a blip.
“But it is fairly obvious that will not be the case, and there are going to be some very serious implications for housebuilding and addressing housing need.
“This very interesting evidence from Barton Willmore shows what we are facing if this is a repeat of 2008.
“We were already in a terrible housing crisis before covid-19 struck.
“And now it is only going to get worse.
“Major initiatives from the government are required in response.
“Help to Buy should plainly be extended.
“And this is a perfect opportunity for the government to assist housing delivery, by funding a whole new wave of infrastructure proposals of all scales to allow large sites to progress.”
Young also calls for a major overhaul of planning policy.
Cambridge-based property Mike Derbyshire consultancy Bidwells head of planning says: “The current crisis has snatched away the momentum which was gathering in UK housebuilding after the number of new homes hit a 11-year high last year.
“To pick up from where we left off post-crisis as best we can, the government must now look to pull other policy levers rather than just fiscal support.
“There is work to be done in streamlining the planning system.
“The industry waits in anticipation of the housing secretary’s soon-to-be published planning white paper which is reportedly going to include a commitment to zonal planning as an alternative to the current land use planning system.
“I’m sure I speak for the whole industry in saying that this will be a fundamental and welcomed change which will help pick up the pace of development.”
Pre-fabricated eco-home builder Project Etopia’s founder Joseph Daniels adds: “With announcements this week from a series of large house builders about returning to site, thoughts will now be turning to how quickly the sector can get the construction rate back to where it was.
“Completions rose by nearly 9 per cent between 2018 and 2019, which is an indication that the country was starting to make a real dent in the housing targets.”
