The value of new social housing starts continues to lag behind last year
(according to new figures from construction data analyst Glenigan)
Report from Inside Housing 01/10/2012
The underlying value of starts in the sector for the three months to the end of September was 5 per cent down on the same period last year. However, the figure represents a slight recovery from earlier this year when figures showed values in the three months to July were 22 per cent down.
Overall figures for residential starts were more encouraging, with values 15 per cent up compared to last year. The value of private housing starts was 30 per cent up. Allan Wilén, economics director at Glenigan, said that the boost for the private sector was a result of house builders bringing sites forward ‘in anticipation of improved market conditions going into the new year’.
Mr Wilén said: ‘In contrast the index of social housing starts for September was 5 per cent down on a year ago as housing associations have reshaped their development programmes in response to reduced government funding.’
In August, Communities and Local Government department figures revealed that new housing starts in England had fallen for a fifth quarter in succession.
The three months to the end of June 2012 produced 24 per cent fewer starts than the same period last year. Overall the Glenigan index showed that the value of all new UK construction projects was 11 per cent down for the quarter compared to 2011. However, the data showed ‘a large amount of work in the pipeline especially in the energy, waste and transport sectors’.
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