Mortgage scheme still to have effect
NEW house building has decreased sharply this year, according to the Office for National Statistics.
Quarter one saw 24,140 housebuilding starts, 11 per cent fewer than the previous quarter. Private house-building starts were 8 per cent less and social housing starts were 21 per cent less.
RICS chief economist Simon Rubinsohn says: “The data clearly demonstrates that housing delivery is falling well short of expectations. There are good reasons for expecting government policy to gradually have an impact on the level of starts. The NewBuy mortgage indemnity scheme only started a couple of months back and is taking a while to gain traction. For the medium-term, planning changes could help.”