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House building set for slowdown in 2010
25/11/09
Edited by Andy Jowett. Despite a recent upturn in residential property construction, industry experts are warning that a continuing lack of mortgage finance could restrict the recovery of the housing sector.
According to new figures from construction analyst Glenigan reported by the Times, house building rose 13.5 per cent in October.
This comes after seasonally-adjusted government data showed builders started work on 25,820 new properties in the three months to September, a 16 per cent increase on the previous three months and the third successive quarterly rise.
However, Glenigan economics director Allan Willen warned that the rate of new house building is likely to slow again in the new year.
"Weak household earnings and consumer confidence, combined with limited mortgage availability, are expected to restrict the pace of recovery in new house sales or project starts during 2010," he commented.
Meanwhile, Brian Berry of the Federation of Master Builders said despite the upturn in residential property construction, the supply of new housing is still falling short of its goals.
This year will see work completed on around 90,000 new homes against a target of 240,000, he noted.
