Private and public housing registrations tumble in June

The housing industry was hit by the first fall in both private and public home registrations this year, according to latest NHBC returns. The collapse in public sector housing starts showed no signs of easing as the sector crashed 70% to 1,643 homes in June.And any recovery in private housing was also stopped in its tracks with a 26% fall to 6,685.

The sudden drop off in private starts is a blow to builders who have relied on modest growth to help offset consistently sharp monthly falls in public housing.

The new figures depressed total UK home registrations for the second quarter, which fell 24% compared to the same time last year.

Over the three months, private sector homes were down 10%, despite better April and May returns.

The second quarter was the most dismal yet for public housing, which tumbled 49%, compared to last year.

Richard Tamayo, NHBC Commercial Director said: “As the year progresses we must hope to see a rebound in social housing numbers as providers adapt to new methods of funding.

"Hopefully the decline in private registrations witnessed in June will, in hindsight, prove to be a statistical blip in what will otherwise be a period of sustained, if modest, private sector volume growth throughout the year.”

Mike Leonard, director of the Modern Masonry Alliance, said: “These figures underline the point we have been making since we launched Plan B 18 months ago.

“We cannot afford to wait any longer. Urgent action is required now to drive jobs and growth and building 25000 new homes for rent is the answer.

“The UK has the opportunity to lead Europe out of recession so on the day we celebrate the opening of the Olympics it is time for Economic Gold.”

The number of new homes registered in June was just 8,328, 43% lower than the same month last year. Private sector homes fell 26% to 6,685, while public sector homes crashed 70% to 1,643.

UK new home registrations (April-June)