Seasonally adjusted new build dwelling starts in England are estimated at 36,630 in the March quarter 2019, an 9% decrease compared to the December quarter 2018. Compared to a year ago, starts this quarter are down by 9%.
Joseph Daniels, founder of modular developer Project Etopia, commented: “Housebuilding has swung into reverse yet again, and it is a further sign that the industry is not consistent enough in its delivery of new homes. A slump in the pipeline of new homes is now programmed in for later this year.
“For all the talk about the government setting ambitious housing targets, there is still a lack of urgency when it comes to walking the walk, and this has meant starts on new homes are down 9% on both the previous quarter and the same time last year.
“The rate of progress means Government targets remain only a pipedream, and the people it hurts are the ones desperate to get onto the housing ladder, who are locked out by high prices because the supply is simply not there.”
Starts are 25% below their March quarter 2007 peak and are 114% above the trough in the March quarter of 2009. Seasonally adjusted starts were down 7% in the private enterprise tenure and decreased by 8% for housing associations. Starts by local authorities decreased, but this sector is small and the figures can be quite volatile.
“With new build starts also 25% down on the pre-crisis peak, the structural problems of the UK’s housing market and the industry’s timid reply are still painfully obvious, even after £10billion of public money has been thrown at it in the form of the Help To Buy scheme. The UK needs a revolution in housebuilding, not a peaceful protest,” said Daniels.
Completions were estimated at 42,870 in the March quarter 2019, a 1% decrease from the previous quarter, but 14% above their level in the same quarter a year ago. Completions are now 11% below their peak in the March quarter 2007 and 71% above the trough in March quarter 2013.
There was no change in the seasonally adjusted completions in the private enterprise tenure, while there was a 5% decrease in seasonally adjusted completions in the housing association tenure from last quarter. Completions by local authorities decreased but this sector is small and the figures can be quite volatile.
There were 162,270 new build dwellings started in the year to March 2019, a 1% increase compared to the year to March 2018. Both private enterprise and housing association starts were up by 1% compared with the previous year. Completions – year ending March 2019 169,770 new build dwellings were completed in the year to March 2019, an increase of 6% compared to the year to March 2018. Private enterprise new build dwelling completions were 6% higher than in the previous year, and completions by housing associations increased by 3% on an annual basis.
There are relatively high rates of new build starts per 1,000 dwellings in local authorities stretching from west of the London commuter belt across the midlands to East Anglia. Areas with high rates include Eastleigh, Harborough and South Derbyshire. Levels of starts increased between the year to March 2018 and the year to March 2019 in 171 out of 326 authorities. The geographic spread of increases and decreases is mixed. Some of the greatest increases and decreases in starts levels were in parts of London.
The highest rates of completions follow a similar pattern to starts. Areas with the highest rates of completions include City of London, South Derbyshire and Corby. Completion rates between the year to March 2018 and the year to March 2019 were increasing in 189 out of 326 authorities. The geographic spread of increases and decreases is very mixed.
“Housing is in a state of crisis, yet the response has not reflected how high a priority house-building needs to be in the UK,” said Daniels. “Only by turning to modern methods of construction which are much faster than traditional building can we hope to deliver the housing the country desperately needs.”
