New home starts on the increase

The number of applications to start new homes rose year-on-year in the three months to May, it has been revealed.

Statistics from the National House Building Council (NHBC) show that there were 54,935 applications during the three month period this year, compared with 52,414 in 2006.

The main catalyst for such an increase appeared to be the number of Housing Association starts, which, despite totalling just 10,638, rose by 42 per cent year-on-year.

By comparison, private sector starts fell by one per cent, but still accounted for 44,297 of the overall figure.

"Our statistics show that Housing Associations are making positive steps towards delivering more affordable accommodation in the UK. With opportunities such as government shared equity and shared ownership schemes, Housing Associations provide valuable help in assisting first-time buyers and key workers onto the property ladder," commented NHBC chief executive Imtiaz Farookhi.

The Financial Services Authority announced last month that it was to investigate the housebuilding industry for fear that new homes were being built too slowly.


© Adfero Ltd