Report shows large fall in building

The construction of new homes has plummeted by the fastest rate in more than ten years, a new survey has concluded.

A study the Royal Institution of Chartered Surveyors (Rics) revealed that after 11 years of uninterrupted growth the fall in construction levels in the last quarter was the quickest since 1995.

Rics is also predicting that the situation will not get better in the near future.

David Stubbs, the organisation's chief economist, said the slowdown in construction has now become absolute decline.

He stated: "This downturn will also have a negative effect on housing targets, which will not be achieved at current levels of output."

According to Rics figures only 175,700 new homes were built in 2007, compared with the government's target of 240,000.

In further evidence of a decline in building, struggling construction firm Taylor Wimpey has announced 900 jobs are to go as it seeks to raise £500 million in new funding.

Those seeking to live in a new home may decide to use the self build method rather than waiting for the industry to pick up again.