Housing starts up 63%

Data from the Communities and Local Government department shows a 63 per cent increase in new housing starts between Q1 and Q2, from 18,350 to 29,980. This is the second increase this year, after starts rose 13 per cent in Q1.
Non-seasonally adjusted figures show starts by registered social landlords reached 6,210 in the last quarter, up 7 per cent on the same period of 2008. Private starts rose from 13,640 to 24,480 between Q1 and Q2 2009, but remain 12 per cent down on Q2 2008.

Completions have also risen between Q1 and Q2, up 24 per cent to 39,320. This means 136,140 homes were completed in the 12 months to the end of June, down 16 per cent on the previous year.

Brigid O’Leary, RICS senior economist, said “This morning’s release of second quarter figures for housebuilding in England provides further evidence that the dramatic scaling back in housebuilding activity since the onset of the credit crunch has probably run its course...Even if that level were maintained, it still suggests an annualised rate of completions of only 160,000. That is well below the 240,000 annual increase in the housing stock that the National Housing and Planning Advice Unit estimates is required to keep pace with demand over the next two decades."