House building crashes to lowest level since 1923

Aaron Morby 12 years ago
Share

The number of new homes completed in England last year fell to its lowest level since 1923, Government figures have shown.

Just 102,570 homes were built last year, 13% lower than in 2009, and the lowest level during peacetime since 1923, according to the Communities and Local Government Department.

The number of homes completed by private developers plunged 18%, compared with a 3% rise for housing associations.

The country is now building less than half the 232,000 estimated homes needed each year in England to keep pace with rising demand.

The figures came as housing minister Grant Shapps set out the final design of the £1bn new homes bonus building incentive scheme, and unveiled the first allocations.

The Government estimates the new homes bonus will deliver up to 150,000 additional homes over ten years – the equivalent to twice the size of Blackpool – and support more than 11,000 construction jobs.

Local authorities involved in the first wave of the initiative will receive almost £200m in payments to reward them for approving developments.

Around 326 local authorities will share the first tranche of cash, with Tower Hamlets getting the most at £4.3m, followed by Islington at £3.7 m and Birmingham at £3.2m.

Other councils making the top 10 that will receive the most from the first payout include Manchester, Leeds, Bristol, Bradford and Milton Keynes.

The Government has pinned it hopes on cash-starved local authorities waving through planning proposals so they can receive matched council tax payments for every home built.

Affordable homes will receive 36% more bonus than market homes. This works out at a £9,000 payment on average to each B and D home or almost £11,000 for an affordable home.

Empty properties brought back into use will also receive the cash bonus for six years.

This would mean that a council allowing 1,000 units to be built could earn £10m to spend where they saw fit.

Grant Shapps said: “To kick start a house building revolution development needs to be backed by local communities rather than opposed by them.

“Rather than feeling the strain of new homes through extra pressure on local services local residents will feel the direct benefit as they get to choose how the money is spent.”

Communities Minister Andrew Stunell added: “I urge all councils to now work with residents to agree how the bonus can benefit them.”

Latest news

RSK buys Scottish M&E specialist WGM Engineering

£45m turnover Glasgow contractor employs 365 mechanical, electrical, and civil engineering staff
2 hours ago

Caddick acquires assets from failed facade specialist

Deal to save Speedpanel operation from Speedclad ensures continuity on projects
3 hours ago

Cladding and roofing specialist falls £9m into red

Lindner Prater runs into loss after remedial works needed on a major job
8 hours ago

Ellmer propels growth at Byrne Group

Concrete specialist Byrne impacted by project start delays
9 hours ago

Kobelco suspends plant sales over engine scandal

Manufacturer stops selling some excavators and crawler cranes over emissions fear
9 hours ago

Watkin Jones sounds profit warning

Higher borrowing costs for buyers starting to hit sale prices and margins
8 hours ago

First nuclear fusion plant to be built in Nottinghamshire

£2bn-plus fusion energy plant to be built at West Burton coal power station site.
20 hours ago

Peel sets up suburban build-to-rent developer

New Letta arm aims to build 1,000 private rental homes in the North West
8 hours ago

Wates Pre-Construction Director joins rival Real

Matt Smith joins ambitious contractor and developer
1 day ago

L&G modular homes amassed loss deepens to £174m

Modular arm suffers sixth successive loss but books first revenue of £12m
1 day ago

Chancellor does U-turn on top rate tax cut

Plan to abolish 45p top rate a "distraction" from Growth Plan
1 day ago

O’Connor Utilities buys fibre optic installer

Leeds-based telecoms contractor InICT employs over 110 staff
1 day ago

Thompsons claims UK biggest blow down at Redcar

100,000t steelmaking plant demolished using 1.6 tonnes of explosive
1 day ago

Costain and Mott MacDonald win £60m Stonehenge deal

New team in to oversee construction once scheme gets planning green light
2 days ago

Brickability buys ET Clay Products for £11.6m

Construction materials distributor acquires brick supply specialist
1 day ago

BAM accelerates net zero target to 2026

UK operations set more ambitious carbon target than Royal BAM Group
1 day ago

Seven metre roof fall from “makeshift” access system

Contractor fined £80,000 after employee fell through fragile roof
2 days ago

Self-employed labour rates hit record high

Average weekly pay tops £1,000 in London, the South East and East of England.
4 days ago

Network Rail chief takes finance reins at Skanska

Meliha Duymaz is new Chief Financial Officer
4 days ago

Construction Manager of the Year crowned

Kier's Joe O’Connell lands top prize. Full list of winners
5 days ago

Hochtief starts pulling down Welsh pylons

Construction starts on National Grid project
4 days ago

Kier wins London life sciences job

Contractor lands innovative landmark lab development at ARC West London
4 days ago

Social housing bidding opens for £1.5bn energy retrofit cash

First upgrades of social housing stock could start from early next year
5 days ago

Construction arm propels Mace to record profit

Revenue expected to top £2bn this year despite project delays
6 days ago

Fire destroys conveyor belt at Silvertown Tunnel site

Forty firefighters battle blaze at huge London site
6 days ago

Plan for £58m Bristol pharma R&D facility approved

Willmott Dixon in line to build the R&D facility at Bristol & Bath Science Park
5 days ago

Bond Street Elizabeth line station to open next month

Final station on delayed line will welcome passengers in October
5 days ago

Sisk fixes price on £227m Quintain flats job

Quintain signs single-largest contract so far at Wembley Park
6 days ago

Green light for St Helens town centre revamp

English Cities Fund to start phase 1 next April
5 days ago

Rising costs tip William Hare to £3.6m loss

Specialist contractor falls into the red despite near 60% revenue rise to £220m
1 week ago

Contractor services