Building slump adds to shortage
THE number of new homes being built each year in England will fall below 100,000 if present trends continue. The Government’s target is 185,000 new homes this year, but according to a new report by BNP Paribas, the UK’s housing shortage has been compounded by a steady reduction in building.
The report says that before 2008, the average number of quarterly starts on new homes was more than 42,000. It has since dropped by nearly 40 per cent to fewer than 26,000. Starts in the last two quarters have fallen back further to levels last seen in 2009, the lowest point in recent times for house building. The report blames economic uncertainty, lack of consumer confidence and mortgage finance.