Brexit uncertainty stalls housing starts at 165,000 a year

Aaron Morby 5 years ago
Share

Housing starts stagnated at 165,160 last year, despite Government efforts to pump up housing supply to achieve its flaunted building target of 300,000 homes by the mid-2020s.

After steadily growing in recent years from a trough of around 75,000 in 2009, starts have remained at the 165,000 level for two years, according to the Government’s own figures.

The plateau is being blamed on Brexit uncertainty.

And other indicators for new home registrations in the first few months of 2019 suggest starts could have peaked, ending nearly a decade of slow but steady growth.

Last quarter of 2018 recent trend figures recorded private new build starts down 9% from the previous quarter, but completions edged up by 2%. Starts by housing associations are 11% lower compared to the last quarter, but completions are up by 4%.

Total completions matched starts at 165,090, an increase of 1% compared with last year.


Annual starts and completions

The latest figures suggest that the Government will struggle to achieve higher completions unless it can spark local authority housing delivery.


Post war housing completions by tenure

More up-to-date figures for NHBC registrations suggest housing starts could well have peaked.

For the rolling quarter, between December and February, 34,199 new homes registrations fell 2%. During this period private registrations fell -13% against last year while the smaller affordable homes sector rose by just over a third, offsetting much of the sharp private sector fall.

Against the slight decrease overall in registrations, half of the 12 UK regions experienced some growth in this period, including London (+17%), the North West (+11%) and the South East (+9%).

NHBC Chief Executive Steve Wood said: “Continuing the trend from January we are seeing strong numbers in the affordable sector but an understandable drop in the private sector amid the ongoing Brexit uncertainty.

NHBC – UK Registrations by region
England – Regions Dec 18 – Feb 19 YOY change
NORTH EAST 1,040 -24%
NORTH WEST & MERSEYSIDE 4,128 11%
YORKSHIRE & HUMBERSIDE 2,220 -4%
WEST MIDLANDS 3,190 3%
EAST MIDLANDS 2,448 -29%
EASTERN 3,098 -25%
SOUTH WEST 3,043 2%
LONDON 4,594 17%
SOUTH EAST 6,220 9%
TOTAL ENGLAND 29,981 -2%
SCOTLAND 2,201 -1%
WALES 1,075 -12%
NORTHERN IRELAND & ISLE OF MAN 942 52%
TOTAL UK 34,199 -1.5%

Latest news

Plan in for £3bn Lincolnshire mega data centre

3.3m sq ft Humber Tech Park will be one of Europe's largest data centres
3 days ago

Green light for Digbeth 1,300 homes scheme

Warner’s Fields scheme to start with excavation and landscaping of the River Rea
3 days ago

Flagship biodiversity net gain scheme flawed

NAO warns Government's flagship green development scheme at risk of failure
3 days ago

£210m M3 Junction 9 upgrade gains consent

VolkerFitzpatrick to start work in early 2025 on Winnall roundabout, near Winchester
3 days ago

United Living wins 14-year L&Q homes repairs deal

Trafford housing upkeep deal worth £205m
3 days ago

£400m Lewisham resi-led scheme advances

Land deal paves way for Amro Partners' 1,000-home London scheme
3 days ago

McLaren gets go-ahead for Grade II listed Leeds student scheme

Springfield House to be revamped and two new wings added
3 days ago

Piling giant to fit people alarms on all rigs

Cementation Skanska upgrades site safety systems
3 days ago

Vistry to make £800m profit after subcontractor cost cuts

House builder bullish about shareholder returns after asking suppliers for discounts
4 days ago

Shareholders approve £2.5bn Barratt and Redrow merger

Final hurdle is for the competition regulator to approve the deal.
4 days ago

Green light for £80m Leith waterfront revamp

Build-to-rent homes and student accommodation scheme to be built
4 days ago

Tilbury Douglas clears Interserve legacy jobs to return to profit

Revenue tops £500m in first year as standalone contractor
4 days ago

Land deal paves way for Manchester civil service office hub

Government buys five acres at former Central Retail Park
4 days ago

Speller Metcalfe wins Wolverhampton library upgrade

Full works are due to start in the autumn
4 days ago

Skills shortage puts big infrastructure projects at risk

Government failing as an intelligent client and now over-reliant on consultancies
5 days ago

Contractors face further insulation board price hikes

Cost of PIR insulation boards set to rise another 10%
5 days ago

Henry Boot wins £36m Rotherham Markets job

Project involves upgrading existing market and building a new library
5 days ago

Keltbray hires new head of infrastructure procurement

Lukasz Olszewski will oversee rail, energy and highways business units
5 days ago

Tunnel fit out robot to revolutionise civils work

Costain and VVB Engineering part of innovative consortium
5 days ago

Funding deal for £86m wind turbine test centre

Latest investment at National Renewable Energy Centre in Blyth
5 days ago

Plan in for Manchester ‘upside-down’ 18-storey tower

Landmark cantilevered NXQ building plan for city Northern Quarter
6 days ago

London 25km Super Sewer hooked up for commissioning

Tideway completes connection to existing Lee Tunnel sewer system
6 days ago

£200m Lincoln ring-road approved

North Hykeham Relief Road granted planning permission
6 days ago

£1bn Manchester Airport City plan rebooted as new sci-tech hub

Plan pivots from offices to science and manufacturing campus, called MIX Manchester
6 days ago

Record results at maintenance specialist Renew

Infrastructure maintenance work continues to pay off for contractor
6 days ago

Barhale lands £21m shaft scheme for Thames Water

Civils specialist bags latest upgrade deal on Thames Water Ring Main
6 days ago

Caddick names new north east director

Former Laing O'Rourke project lead joins Yorkshire contractor
6 days ago

Mount Anvil wins London Camden estate rebuild

Deverloper wins £133m Bacton Phase 2 development in Gospel Oak
7 days ago

London Met Uni seeks firm for £280m estate upgrade

A single partner contractor will deliver 10-year building upgrade plan
7 days ago

Top 30 M&E contractors set for growth – ranking

Growth in data centres and commercial refits creates optimism for year ahead
7 days ago

Contractor services