English developers began building around 32,000 new homes in the first quarter of 2008, government figures have revealed. The Department for Communities and Local Government puts the January to March new build figure at 32,100 new home starts. This is almost 25 per cent less than the number of new build starts recorded for the same period in 2007.
Government target in question
It is thought the impact of the credit crunch and a tightening of the UK mortgage market could be to blame for the slump, which poses questions for the government’s target of 240,000 new homes a year by 2016. Housing minister Caroline Flint said:
“It’s important to remember this is a long-term target, and the fundamentals for a healthy housing market over the long term are in place.”
Ms Flint added the 2016 target is
“challenging but remains achievable.”
Figures showed the number of housing starts was highest in the South East and lowest in the North East, with the pattern of housing completions across the regions very similar to the trends in starts.
Latest figures for 2006 to 20007 show the current new housing additions figure reached 199,200.
The biggest new build falls were experienced in the North West, Yorkshire and the Humber, the East Midlands and London.
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