The latest government figures on housebuilding, released as a separate survey by the Federation of Master Builders, combined with higher reservation rates for new Barratt homes sent out mixed messages to the industry this week.
The number of housebuilders building fewer than 500 houses per year has fallen to 3,824- its lowest level since records began, Construction Enquirer reported, adding that ‘FMB director Brian Berry warned that the lack of house builders would hamper the recovery.’
Construction News reported that the number of schemes began in the last three months to September had ‘barely changed’ from those in the previous quarter year, at 23,410. This was 1% lower than in the previous quarter, the weekly reported. It added that actual housing starts in the 12 months to September 2011 stood at 96,070, down 7% compared with the same period last year.
Construction Enquirer noted that ‘Actual completions are now running at the lowest level seen for several decades and will alarm government, which has pledged to lead a housing revolution.’
In better news, Reuters reported this week that Barratt Developments had announced that it’s average private home selling price had gone up 7% to £207K, and that private reservations had gone up 26%- factors that would ‘significantly’ help to improve its full-year profit.
Reuters stated that the firm said the figures are positive, especially relative to last year, when the sector was hit with fears around the government’s spending cuts, but Mark Clare, CE of Barratt added that ‘industry growth would remain constrained as long as mortgage finance was limited.’
Halifax’s latest figures put a month on month rise in house prices, but other surveys have painted a bleaker picture and see house prices falling in the months ahead,’ Reuters reported.
