Monday, 23 August 2010

Housing Starts

CLG released the latest figures for housing starts were released a few days ago.

There were 28,590 starts (seasonally adjusted). According to the press release:
- 13% higher than last quarter
- 84% higher than the March 2009 trough
- 42% below there March 2007 peak

CLG provide more comparisons but all those numbers left me a little dazed. If you take a 10 year pre-recession average of Q2 you get around 42,000 starts. So I guess we should view that figure as about 2/3 of the 10 year average.

There are some reports that scrapping the regional spatial strategies has led to plans for 84,000 houses being reviewed or cut. Of course, not all of these may not have been planned for the same year, but if these figures are right you would expect them to start showing up in the Q3 figures.


Tim Leunig said...

I think it might take longer than that to show up, as "RSS planned houses" were not necessarily about to be built. But it will show up sooner or later.

Jim said...

The 84,000 figure refers, as far as I know, to reductions in long-term, multi-year targets, so I would expect very little of it to affect starts in Q3 2010. Nearly everything starting in this period will have been given planning permission before the election.