New housing construction 10-year high in UK

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Builders registered plans to start 160,606 new homes, up 6 per cent from 2016 and the highest number since the latest recision hit the UK and the world.

Construction companies and developers are having their best year in 10 years. Number of registered plans to start new housing construction is up by 6 percent from 2016.

To tackle a shortage of housing Prime Minister Theresa May wants construction of new homes to rise to 300,000 a year to tackle a shortage of housing in London and across the UK.

The National House Building Council (NHBC) said builders registered plans to start 160,606 new homes, up 6 per cent from 2016 and the highest number since the start of the financial crisis in 2007.

This is the much needed positive news in the bruised housing industry that is going through a rough time with sales volume and resale prices in housing market. Unlike Ireland, Spain and parts of the United States, Britain did not have a housing-construction boom before the financial crisis. Tight planning rules and a shortage of skilled workers remain a key constraint.

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Steve Wood, NHBC’s chief executive, said he expected housing starts to rise further in 2018.

“If the economy is sound, the housing market is sound,” he said. “I know there is a bit of an argument about whether we are going to lag behind global growth. But if we are still going to get growth, we will get growth in housing as well.”

Housing starts rose by nearly 20 per cent in Wales and parts of central England, and crept up by 1 per cent in London – the first increase in the capital since 2014.

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