Social housing starts down 38%

Published by Julien Tremblin for 24dash.com in Housing

Social housing starts have fallen by 38 per cent in the three months to November compared to the same period last year as further decline is forecast, new figures reveal.

The latest Glenigan Index shows that across all residential construction, starts have fallen by 24 per cent over the same period.

According to the construction analyst, the fall was a key factor in the overall 10 per cent drop in all construction starts. Non-Residential project starts were 13 per cent down on a year ago as both privately and publicly funded projects were thin on the ground.

Glenigan economist James Abraham said: "Private housing starts fell 13 per cent but are forecast to stabilise over the coming months. However, social housing declined 38 per cent year on year and further retrenchment is forecast here as the cut backs in Government funding bite.

"Education construction remains weak and the value of health and community & amenity projects declined for the first time in the second half of 2011. The only non-residential sector to avoid a decline was retail, buoyed by a number of large extension and refurbishment projects.”

However, civil engineering project starts for the three months to November were 61 per cent up on a year ago.

Abraham observed "The flow of civil engineering projects can be volatile. Utilities saw a sharp increase with project starts including the decommissioning of a nuclear power plant and new wind turbine projects, while the infrastructure sector saw investments in road and rail station projects in London, the West Midlands and Scotland."

Commenting on the regional picture, Mr Abraham said "Wales, the South East and South West of England particularly enjoying an increased flow of new work while Scotland saw year on year growth of 10%. By contrast, over the three months to November the underlying value of project starts in Northern Ireland, the East and North West of England fell by more than 20 per cent and Yorkshire continues to endure a poor flow of projects reaching start on site."