Huge slump in housebuilding

Reporter: Lobby Correspondent
Date published: 17 December 2008


THE number of homes being built across Greater Manchester is falling month on month — despite the need for the construction of thousands more by 2020.

Only 614 new houses were started during the last quarter, according to the The National House Building Council, down by 69.4 per cent on the same period last year with 2,004 homes.

In the first the quarters of 2007, 6,321 homes went up across Greater Manchester, compared with 3,169 in the same period this year.

Nationally, around 270,000 house must be built every year if the original target of three million is to be achieved.

Only about 100,000 have been registered this year.

Grant Shapps, shadow housing minister who uncovered the figures, said: “I think it’s an absolutely terrible way to go about planning housebuilding to set a national target and then try to force those numbers down through the regions. It was never going to work anyway but the housing crash has made it even less likely.”

Ministers argue plans to build much-needed homes will help first-time buyers who are struggling to get on the housing ladder.

But critics claim it will lead to prime greenbelt sites being developed on.

The Conservatives warned that the Government’s whole approach to housing needs to be reviewed.

Mr Shapps called for the Government to “think creatively” about how it could help to boost the industry through social housing developments.

Mr Shapps said: “If you allow the sector to collapse it is almost impossible to rebuild it in time for another housing bubble because the skills will leave the industry.

“Afterwards as demand picks up again the skills won’t be there to build the homes we need and house prices will start to go up much to quickly again.”

Separate figures show more than 8,000 people are waiting for social housing in Oldham.