Housing Starts Lowest Since 1945

Construction Products Association (CPA) figures published recently illustrate starkly the danger the downturn in the housing market poses to related industries and the wider economy, and emphasises the need for immediate Government action.

Whilst the long term prospects for home builders are good, with a huge unmet need for new homes recognised by Gordon Brown's flagship '3 million new homes by 2020' announcement, these are challenging times for the industry.

The inability of people to secure mortgages to buy the homes they want has meant that an industry that has been steadily increasing capacity in recent years is now having to scale back some of these gains. This is resulting in job losses, office closures and fewer homes being built, both private and social - with clear implications for both the economy and Gordon Brown's housing targets.

Stewart Baseley, Executive Chairman at the HBF, said ‘We have been warning for months of the dangers of allowing this downturn to continue. Today's report is further evidence of the urgent need to get some confidence and fluidity back into the housing market. If the Government wants to deliver the homes the country needs, and to avoid the housing market dragging the wider economy into recession, it must act now.’

HBF has been calling for a range of measures to be taken, including a stamp duty holiday for first time buyers, a cut in interest rates, a Government backed first time buyer deposit scheme and a review of the escalating cost burden of Government regulation.