Housing output set to fall

The provision of new build homes is set to drop this year and next, it has been suggested, contradicting earlier predictions of a rise.

Experian has said that it now expects private housing output to fall by one per cent this year and by three per cent in 2008.

The firm also lowered its expectations of construction output, which it now says will rise by 1.8 per cent this year, below previous expectations of a 2.5 per cent rise.

"Housing starts increased in recent years owing to higher-density construction, but there is evidence to suggest that densities have peaked, and that the number of units started annually is likely to fall over the next couple of years," the report notes.

But Building.co.uk has highlighted the fact that the report suggests output could rise again in 2009 as planning reforms making greenfield development easier come into effect.

The government announced this month that it intends to build three million new homes by 2020.


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