The Government has set a target of 185,000 new homes to be built this year. However, the combination of economic uncertainty, lack of consumer confidence, local authorities ‘not in my backyard’ attitudes and the dearth of mortgage finance could result in the target being missed by the equivalent of a town the size of Bournemouth.
According to a report published by BNP Paribas, construction was down 18% in the first three months of 2012 compared to the first quarter of 2011.
It warns that, if this trend carries on, the number of new builds could fall below the nadir of 2009.
Tim Cann, head of development and residential consulting at Paribas, who compiled the report entitled Housing the Nation, said: “With more than 1.8m households on council waiting lists, the report reveals that the Government is on track to miss its targets by a worryingly large number.”