The number of residential properties in England on which building work began sank by 52 per cent from the first to the second quarter of this year as lockdown stalled the construction industry.
The official figures are collated from building regulations data and published by the Office for National Statistics and the Ministry of Housing and Local Government.
Building work began on 15,930 dwellings in the three months from April to the end of June, compared to 33,188 between January and the end of March when Covid restrictions began.
It follows a recent trend of a slowdown in growth with the last six quarters all showing a decrease in housing starts.
The number of dwellings completed between April and June declined even more steeply, with a drop of 62 per cent.
A total of 15,950 homes were completed in the second quarter, down from 41,974 in the first three months of the year.
This steep fall follows a period of sustained growth, MHCLG says.
Separate research published today by accountancy association MHA suggests that the impact of the pandemic on different construction companies has been polarised.
In a survey of 100 firms in the sector, MHA found that almost half say the impact of Covid-19 has been substantial, while 44 per cent say it has been minimal.
Only 5 per cent state the damage was critical.
The division is also apparent in terms of expectations for the future.
Almost a third say business activity is now back to normal, or nearly back to normal, while 30 per cent believe it will take over a year to return to pre-pandemic levels.
Almost three quarters of construction companies plan to bring back all furloughed staff.
MHA head of construction and real estate Robert Dowling says the future is very uncertain.
“Government projects are now the most likely source of revival for the sector; housebuilding, although currently buoyed up by strong demand is likely to suffer from a rise in unemployment and commercial building is unlikely to thrive, with many companies questioning whether they need as much office space as before.”
