The UK Government’s plan of 2 million homes by 2016 at risk

Posted under General by Michael

The UK Government’s ambitious plan of providing for 2 million homes by 2016 is likely to receive a setback.  According to David Stubbs, senior economist at Royal Institute of Chartered Surveyors (Rics), weak market and excess inventories of unsold homes has compelled building firms to drastically reduce building activities.

The number of new-builds fell by 24 per cent in the last three months as per the figures available with the government. He opined problems in mortgage market and slow down in economy would continue to cause decline in house building. As a result, the UK Government’s pledge of building three million homes by 2020 seems a distant possibility.
 
Annual housing start figure, totalling 156,400 in 2007-08, fell by 10 per cent compared with 2006-07. The figure is 18 per cent less when compared with 2005-06. In fact since 1992-93, number of completions exceeded number of starts for the first time in 2007-08.  The National Housing Federation (NHF) spokesperson stated it would be difficult for the government to achieve its target.