Home building at highest level since the crisis

HOUSEBUILDING in England has hit its highest level since the financial crisis plunged the industry into crisis.

The number of homes added in the UK rose 2pc to 222,190 in 201718, the most since 2007-08.

Among those were 195,290 new homes, also the highest figure for ten years. The rest come from splitting houses into flats and converting shops, offices or industrial buildings into homes.

The boom was hailed by ministers and businesses but critics said it still fell far short of the Government’s target of 300,000.

It came on a grim day for the industry, with shares tumbling as support appeared to be unravelling for Theresa May’s Brexit deal.

Those hit by the turmoil included Barratt Developments, Persimmon and Taylor Wimpey, as traders shunned industries tied to the ups and downs of the economy.

Shares in Bovis Homes fell 7pc after it said Brexit uncertainty was putting homebuyers off.

The official figures were the best since 2007/08, when 223,530 homes overall were added in England.

The number of newly-built homes was the highest since 2007/08, when the figure reached 200,300.

And it comes five years after the Help to Buy scheme launch, which gave first-time buyers taxpayerbacked loans to buy homes. Builders say that boosted demand.

James Brokenshire, Secretary of State for Housing, said: ‘These figures are great news. But we are determined to do more to keep us on track to deliver the homes communities need. That’s why we have set out an ambitious package of measures to deliver 300,000 homes a year by the mid-2020s. This includes an investment of more than £44bn, rewriting the planning rules and scrapping the borrowing cap so councils can deliver a new generation of council housing.’

Polly Neate, chief executive of Shelter, said: ‘It’s good to see that the number of homes has risen again. To end the crisis, it’s crucial this continues and that as many as possible are social homes.’

Stewart Baseley, at the Home Builders Federation, added: ‘Builders have continued to invest and increase output. The Government needs to continue to work with all parts of the sector if we are to hit the 300,000 target.’ However, the increase is slowing. While it rose by 2pc last year, it was up 15pc in 2016/17 and 11pc the previous year.

Reuben Young, of housing campaigners Priced Out, said: ‘Every year we don’t build 300,000 homes in the areas people want to live, our housing crisis gets worse. Allowing councils to borrow to build is an important step, but now the Government needs to reform the planning system and tax land.’