The latest quarterly report from the Department of Communities and Local Government shows that seasonally adjusted house building starts in England increased by 4% quarter on quarter to an estimated 27,370.
The data also shows that seasonally adjusted completions increased by 8% compared with the fourth quarter of 2012 to 24,900.
Private enterprise housing starts were 7% higher in the March quarter of 2013 than the previous quarter, whilst starts by housing associations were 1% higher.
Seasonally adjusted private enterprise completions decreased by 7% and housing association completions fell by 9% from the previous quarter.
But the data also shows that seasonally adjusted starts are now 62% above the trough in the March quarter of 2009 but 44% below the March quarter 2007 peak. Completions are 49% below their March quarter 2007 peak.
Overall annual housing starts totalled 101,920 in the 12 months to March 2013, down by 3% compared with the year before.
Simon Rubinsohn, chief economist of the Royal Institution of Chartered Surveyors said that the increase in activity in the new build sector mirrors the stronger tone seen in the latest RICS residential market survey.
He pointed out that in addition to benefiting from the impact of the Funding for Lending Scheme, developers have also been able to take advantage of various other government initiatives including First Buy and NewBuy.
‘This has been reflected in the sharper rise in private sector starts. By way of contrast, the picture amongst both Housing Associations and local authorities is altogether flatter,’ he said.
‘The government has extended its support for the new build sector through the introduction of Help to Buy. By opening up the shared equity product to a greater range of purchasers, the intention is to stimulate a greater level of development,’ he explained.
‘While RICS expect this to be reflected in a higher level of new build over the balance of this year, there remains a question mark as to how much additional activity will be stimulated specifically by this programme,’ he added.
RICS expect housing starts to climb to around 115,000 this year which compares with fewer than 100,000 in 2012. ‘This will, nevertheless, still leave the level of house building way short of projected household formation and suggests that rather more will need to be done to address this key challenge for the country,’ said Rubinsohn.
