New house building starts in 2006 up over 3%

In England, new house building starts in 2006 amounted to about 183,140 (up over 3 per cent on 2005) and completions totalled 160,230 (up around half a per cent up on 2005), according to the Department for Communities and Local Government (DCLG).

The new figures indicate that, starts and completions in 2006 were both around 24 per cent higher than in 2001.

Figures for the latest quarter to December show housing starts in England up 11 per cent on the equivalent quarter in 2005. Completions in the December quarter show an 11 per cent fall from the relative high level in the last quarter in 2005.

Starts and Completions in England

During the calendar year 2006, starts amounted to about 183,140 (up over 3 per cent on 2005) and completions totalled 160,230 (up around half a per cent up on 2005). Both starts and completions in 2006 were around 24 per cent higher than the levels in 2001.

In the quarter to December 2006, there were around 47,570 starts and 41,750 completions. Comparing the quarter to December with the equivalent period in 2005:

Starts were up 11 per cent

Completions were down 11 per cent, but this compares with an unusually high 46,830 completion in December 2005 quarter.

The underlying quarterly trends show an upturn in starts in the December quarter following falls in the previous two quarters compared with the equivalent quarters in 2005. Completions have fallen back in the December quarter from the relatively high level from the equivalent quarter in 2005.

Regional Trends

The South East and the South West continued to see strong upward trends in starts. For example, South East starts amounted to 32,950 in 2006, 12 per cent higher than in 2005. There was also a recent upturn in starts in the East Midland.

Completions across the regions largely remained level or show moderate recent falls.

Commenting on the release of the housebuilding figures for the fourth quarter of 2006, senior economist David Stubbs said: “This caps a disappointing year for housebuilding. After 4 consecutive years of increasing by more than 5%, 2006 saw completions only edge up by 0.5% to 160, 234. This is 23.5% higher than the recent low of 2001 but remains well below the 209,000 homes that will be needed every year just to keep up with the government's estimates for household growth up to 2026. Indeed, they are even further away from the 250,000 houses that the Barker Review estimated are required per annum, to bring long-run real house price inflation in line with the EU average. The Government needs to take more action to ensure that house building rises to sufficient levels if it is to make good on its promises to promote an inclusive society where the poorest are not priced out of the housing market.”