The value of new housing developments on which construction work began was down by 27% in June compared to a year earlier, according to the latest index from Glenigan.
However, on a quarterly basis there was a modest improvement, with the value of new housing starts up by 6% on the previous three months.
The findings come as a trading update from Barratt Developments today revealed a slowdown in housing completions.
Glenigan economist, Drilon Baca, says: “The election had a considerable effect on industry behaviour, resulting in a project-start slowdown as firms took a ‘wait and see’ approach.
“Looking forward, the new government’s decision to rapidly consult on reforms to the National Planning Policy Framework has unlocked opportunities for the built environment.“The re-introduction of mandatory housing targets should help to ease the backlog of major housing sites, providing a boost to the industry.”
