Private housing site starts slump in first quarter

Aaron Morby 13 years ago

New private housing starts have slumped by nearly two-thirds in the first quarter of the year compared to 12 months ago.

The dramatic 61% crash in the value of private housing site starts was uncovered in the latest survey by construction information specialist Glenigan.

It provides strong evidence that house builders are building out existing sites while reining back project starts as they face falling selling prices across most of the country.

The survey has also revealed the wider construction industry is being hit by spending cuts. Across the industry as a whole, the Glenigan Index for project starts in March fell by 31% on a year ago.

James Abraham, economist at Glenigan said: “The weak first quarter of 2011 is in sharp contrast to the strong rebound experienced a year ago in the run-up to the general election.

“The construction industry has been hit by reduced government investment and continued private sector weakness, with private housing experiencing the biggest contraction.”

Abraham added: “Glenigan recorded a 61% year-on-year fall in the underlying value of new private housing project starts during the three months to March compared with a year ago.

“This follows NHBC reports of more modest declines in the new home registrations in February compared to a year ago and indicates that, faced with renewed housing market weakness, developers are continuing to build out existing schemes but are opening up fewer new sites.”

Elsewhere, the Glenigan non-residential index contracted by 19%.

Abraham added: “Government spending cuts have already ensured a modest decline in the value of health, education and community & amenity builds, further retrenchment is anticipated from the start of the new financial year in April.”

According to the survey the underlying value of office starts fell by 45%, while retail starts were 27% down and civil engineering project starts fell by 16%.

Abraham said: “While civil engineering work is still below the first quarter of 2010, there has been a significant recovery compared to three months ago.

“In addition, in the last three months there have been some major projects starting, such as the redevelopment of Victoria Street tube station in London, which were not represented by the underlying trend.”

Latest news

Geoffrey Osborne supply chain hit for £26m

More than 500 suppliers and subcontractors left holding unpaid bills
23 hours ago

SME contractors agree 4% pay rise for site workers

Workers will also get an extra day of holiday
20 hours ago

Labour to mothball £320m A27 job to fix potholes

Manifesto confirms Arundel Bypass canned as "poor value for money"
1 day ago

Lendlease’s £1.9bn Smithfield Birmingham scheme approved

Initial work to start later this year despite questions over Lendlease's degree of involvement
1 day ago

Crest Nicholson rejects £650m Bellway bid

Second Bellway approach rebuffed
2 days ago

Hill submits £800m East London estate rebuild plan

Over 1,900 homes to be built in five phase at Teviot Estate in Poplar
2 days ago

Plan approved for 8,500-seat Edinburgh indoor arena

Construction expected to start next year once a contractor is appointed
1 day ago

Statom starts on £25m Bristol Airport precast car park

Major work package on transport upgrade being overseen by Griffiths Farrans JV
2 days ago

Build problems plunge Crest Nicholson to a £31m loss

House builder unearths more defects on completed sites
2 days ago

Rebooted Amey lifts contract win rate to 1 in 3 bids

Amey chief says firm exceeded expectations in first year under new owners
2 days ago

BAM Nuttall fined £2.3m after worker drowned

Court hears how series of safety failures led to tragedy
3 days ago

OCU buys Scottish civils contractor RJ McLeod

Deal takes multi-utility infrastructure specialist revenue to over £800m
3 days ago

£220m plan to restore secret wartime tunnels approved

Tunnels under High Holborn to become cultural exhibition space
3 days ago

Galliford Try wins £69m Scottish school job

Deal sealed on Paisley Grammar School project in Renfrewshire
2 days ago

Balfour wins design for £690m Skye transmission job

Main work contract for 137km power line to be awarded later this year
3 days ago

Student and resi developer Fortis goes under

Cheshire based developer follows construction arm into liquidation
3 days ago

Construction output falls for third month running

Heavy rain and strong winds blamed for sharp fall in activity in April
3 days ago

Plan in for Leeds 27-storey block of flats

390 flats planned at former Morgan Sindall office site
3 days ago

Firms readied for £1.5bn Parliament estate upkeep deal

Invitation to tender due to go out next month
4 days ago

Amey switches kit supplier

Deal with HSS was worth £24.5m a year to rental specialist
3 days ago

Track workers scatter to avoid runaway rail trolley

Track trolley careers 1km towards work site
3 days ago

Direct delivery model pays off as Murphy profit soars to £67m

Group operating margin jumps from 3% to 5% in record year
4 days ago

Ex-Galliard boss to lead Battersea next building phase

Don O’Sullivan joins as plans advance to start phase 3C of power station redevelopment
4 days ago

£100m Digbeth 33-storey flats job out to bid

483 flats will be delivered for Clarion housing association
4 days ago

Van Elle fined £233,000 after piling rig kills driver

Court hears how tragedy was caused by poorly maintained plant
4 days ago

Renew buys utilities contractor Excalon

Infrastructure giant expand into electricity transmission market with £26m deal
4 days ago

Planning for new homes plunges to record low

Home builders call for urgent action from incoming government
4 days ago

JTRE starts £400m 21-floor London tower scheme

Office block and 64 affordable homes to be built at 220 Blackfriars Road site
5 days ago

R G Carter construction profits up despite 24% revenue fall

Selective client choice help profit jump to £6m from £1m previously
5 days ago

Refurbs power London office work to record high

London Office Crane Survey office work starts exceed 4m sq ft for record third quarter
5 days ago

Contractor services