Housebuilding starts slump to post-war low

The number of homes being built is at a post-war low, the Construction Products Association (CPA) has revealed today.

Based on forecasts by the body, the number of starts being made on the construction of new homes is to slump to 147,000 this year, 27 per cent less than in 2007 and the least since 1945.

CPA chief executive Michael Ankers commented: "To be starting fewer new homes than at any time over the last 60 years illustrates the scale of the problem we now face."

He warned that the credit crunch led decline in output would continue through this year and next and warned that unless action was taken to resolve the situation, there was a danger that the capacity in the building industry would shrink to a point where it would be hard to meet future demand.

Those hoping to live in a new home and concerned at the lack of building may decide to take the matter into their own hands using the self build method.

News of the CPA figures today follows warnings from the House Builders Association yesterday that the number of completions could drop to 110,000 this year and as low as 80,000 in 2009.