The number of completed homes fell quarterly by 10 per cent to 43,660 in Q2 while new building starts dropped by five per cent to 42,900, figures have shown.
This is according to data from the Department of Levelling up, Housing and Communities (DLUHC), formerly the Ministry of Housing, Communities and Local Government.
Due to restrictions imposed on the construction sector during the pandemic, the measures were up 167 per cent and 150 per cent respectively compared to last year.
The drop in starts is the first decrease since Q2 last year.
Completions are 10 per cent down on their peak in March 2021 and also the first decrease since Q2 last year.
Government target ‘out of reach’
Danny Belton, head of lender relationships at Legal & General Mortgage Club, said the housing market had been under “considerable strain” due to material and labour shortages which slowed the development of new homes.
He added: “This has put the government’s target of building 300,000 new homes each year yet further out of reach, but we must find solutions to solve the issue of housing undersupply. Its recent commitment to provide £8.6bn in funding for affordable housing will undoubtedly help, but other solutions are also needed.
“If homeownership is going to remain possible for future generations, then alternative construction methods, like modular housing, also need to be considered.”
Shekina is the deputy editor at Mortgage Solutions and commercial editor at Mortgage Solutions and Specialist Lending Solutions. She has nearly eight years of experience in the B2B publishing market, having previously covered the hospitality, retail, pet, accounting and jewellery sectors.
Shekina has worked for Mortgage Solutions and Specialist Lending Solutions for almost five years. Here, she covers the market’s breaking news stories, engages with professionals in the sector, and oversees any commercially agreed content in partnership with mortgage-related companies.
This includes presenting webinars and hosting roundtable discussions on developing themes in the mortgage sector.
She is an NCTJ-trained journalist and was nominated for the Headline Money Awards Mortgage Journalist of the Year in 2021.
In her spare time, Shekina likes to read, travel, listen to music and socialise with friends.
She currently reports on current events in the mortgage market and liaises with financial clients to produce sponsored content.
Follow her on Twitter at @ShekinaMS
