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Number of new homes falls 23% in a year

27 October 2010
Written by rosalind renshaw

The number of new homes built in England fell to a record low in the past year, down 23% on 2008/9.

Just 128,680 net additional dwellings were provided in 2009/10 compared with around 167,000 in 2008/9. The previous record low was 130,510 in 2001/02.

Numbers fell on the previous year in every English region. The North-West saw the largest annual decrease (38%), followed by the South-East (32%).

The figures were published by Communities and Local Government just after the Coalition announced large cuts to housing budgets in the Spending Review. Housebuilders across the country have been warning that action is needed to halt the decline and avoid deepening the housing crisis.

Five months after scrapping housing targets, local councils and builders are still waiting for the introduction of the new national planning framework and the promised New Homes Bonus incentive for housebuilding.

Stewart Baseley, chairman of the Home Builders Federation, said: “There is no doubt that the previous planning system was not succeeding in delivering enough homes – but housing delivery, crucial to solving the housing crisis, is not yet increasing, and in many areas has actually fallen.

“These figures reveal the extent of the housing supply problem and the need for real action now, cutting red tape and implementing incentives so we can build the homes the country needs.”

Comments

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    But he suffers first hand in his profession.

    • 27 October 2010 17:31 PM
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    Mr Oddy: with due respect as an architect you see the reduction SECOND hand! It is the developers who suffer the first-hand consequences... Also, I would respectfully suggest that your comment that "Anumber of planning authorities also require the dwellings to reach certain code levels for energy etc which necessitates incorporating alternative energy systems at very high costs." be a bit optimistic. Surely this should state ALL...?

    • 27 October 2010 11:47 AM
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    As an architect I see the reduction in new housing first hand. I have numerous clients who cannot build due to the fees required by local authorities in addition to the application fees - highways £1500, Recreation - £1300, Heathlands - £1500 and social housing either donated as dwellings at cost or a substantial fee (£12k for a small 2 bed bungalow). These are all in addition to a possible 32 reports that could be requested which have to be prepared by qualified people at large costs. Anumber of planning authorities also require the dwellings to reach certain code levels for energy etc which necessitates incorporating alternative energy systems at very high costs. All these 'add on' costs results in the developments being non viable.

    • 27 October 2010 09:53 AM
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