News

Gap widens between social and private housing

30 March 2012

Figures released today by NHBC have shown that the gap between private and public sector registrations in the UK continues to expand, with social housing figures contracting year-on-year.

NHBC registration figures for the public sector decreased 20% in January 2012 compared with January 2011, and 58% in February 2012 year-on-year. (1,854 compared with 2,304 in January 2011 and 1,373 from 3,289 in February 2011). In contrast, private sector housing registrations have experienced consecutive increases this year, with a 9% rise in January followed by 27% in February, compared with the start of 2011.

In total there has been a marginal 2% decrease in the number of homes across all sectors registered to date this year in the UK (16,343 in 2012 compared to 16,705 in 2011).

Commenting on the latest figures, Richard Tamayo, Commercial Director of NHBC, said: “As we near the end of Q1, our latest statistics have revealed a consistent start to the year, with both January and February reporting significant growth in the private sector but a concerning drop in social housing.

“The newly published National Planning Policy Framework and recently-announced first time buyers’ mortgage initiative are both important steps in empowering the private sector – the current engine of growth for housing numbers, as our statistics indicate – to produce the volume of homes the country urgently needs. “

Figures released today by NHBC have shown that the gap between private and public sector registrations in the UK continues to expand, with social housing figures contracting year-on-year.

NHBC registration figures for the public sector decreased 20% in January 2012 compared with January 2011, and 58% in February 2012 year-on-year. (1,854 compared with 2,304 in January 2011 and 1,373 from 3,289 in February 2011). In contrast, private sector housing registrations have experienced consecutive increases this year, with a 9% rise in January followed by 27% in February, compared with the start of 2011.

In total there has been a marginal 2% decrease in the number of homes across all sectors registered to date this year in the UK (16,343 in 2012 compared to 16,705 in 2011).

Commenting on the latest figures, Richard Tamayo, Commercial Director of NHBC, said: “As we near the end of Q1, our latest statistics have revealed a consistent start to the year, with both January and February reporting significant growth in the private sector but a concerning drop in social housing.

“The newly published National Planning Policy Framework and recently-announced first time buyers’ mortgage initiative are both important steps in empowering the private sector – the current engine of growth for housing numbers, as our statistics indicate – to produce the volume of homes the country urgently needs. “

Meanwhile the  government is involved in last ditch talks with banks and housebuilders to rescue the roll-out of its flagship 100,000-home £1bn NewBuy mortgage guarantee following increasing reluctance from lenders to back the scheme, reports Building. The mortgage scheme, designed to offer 95% mortgages backed by a £1bn government guarantee to buyers of new build properties, was launched with fanfare by prime minister David Cameron on 12 March.

Builders involved in the scheme estimated it could raise new home sales by up to 15%.But just three lenders and seven housebuilders were involved in the scheme at launch, with the promise more would be able to take advantage of the government backing in the coming weeks. The two biggest lenders, Lloyds and Santander, have not yet joined.

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