New home applications plunge 50% in 12 months

Dire new statistics show the house building industry is in freefall, with the number of applications to build new homes plummeting by more than half in 12 months.

Figures by the National House Building Council (NHBC) show just 23,185 applications to build new homes were made in the three months to September – 54% lower than the same period in 2007.

Applications to build private homes totalled just 13,359 – a 67% decrease on last year’s figure.

The outlook was particularly bleak in the north east, where figures showed housing starts fell by 81% from 1,783 to 344 against the same quarter last year.

Completions were also down by 20% on last year, with 33,299 homes finished during the third quarter.

But it wasn’t all bad news, with applications to start the construction of social houses up 5% on last year to hit 9,827.

NHBC chief executive Imtiaz Farookhi said: “Our latest figures show that the downturn is continuing to have a severe impact on the output of new homes, particularly in the private sector.

“New home starts in England during the third quarter fell 50% year-on-year to 20,239, the biggest regional decrease being in the north east where starts fell by 81% against the same quarter last year,” he said.