Home building market value ‘falling’

Lge-NewHouse1EThe underlying value of home construction starts in the UK dipped in the three months up to May 2011 compared with the same period 12 months ago, according to figures from one industry analyst.

Social housing fell 28 per cent while residential projects initiated by the private sector declined by 32 per cent during this time, with value in the sector overall decreasing 31 per cent, Glenigan reported.

This is in “stark contrast” to the “rapid government-funded growth” of the same time last year, economics director for the firm Allen Wilen declared.

He has forecast “a modest uplift in project starts” during the latter half of 2011, despite the fact that house prices are expected to remain weak in the near future.

His comments follow a Council of Mortgage Lenders (CML) announcement of a 14 per cent decline from March to April in home loan lending.

CML chief economist Bob Pannell said it was difficult to understand the implications of this due to “statistical noise”, but Mr Wilen stated that it painted “a glum picture for the housing market” and underlined the conditions faced by builders.

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