Housing starts drop 23% as Homes England chief admits ‘times are tough’

The figures, which do not include delivery in London, are likely to raise further questions about the government’s ambition to be building 300,000 homes a year by the middle of this decade.

Housing development in London is measured separately by the Greater London Authority. 

Affordable housing starts dropped by 10% year-on-year to 9,927, the figures showed. 

Among this, social rent starts slid by 14% year-on-year to 722. Affordable rent starts fell by 51% to 1,058. 

However, the biggest drop in starts was seen for market sale homes. Starts on site for this tenure dropped by 59% year-on-year to 2,260. 

The figures tally with announcements by major house builders to dial down their development plans amid the continuing tough economic conditions.

Affordable starts made up a higher percentage of the overall total (86%) as the economic landscape is driving demand for the tenure, with market sales taking a downturn.

On completions, the number of homes handed over dropped by 9% to 11,297. Total affordable housing completions were 7,831, down from 7,905 in the same period last year.

However, among this, social rent completions edged up by 49 to 1,174. A total of 3,092 homes for affordable rent were completed, a drop of 16% from the same period last year.

Mr Denton added: “Times are tough and I’d urge existing and potential partners from the building industry, home providers, developers, investors and local authorities to engage with the Homes England team.

“We are here to help unlock solutions to problems and pave the way for more homes and regenerated places where people want to live and thrive.”

The latest stats come as the head of a major house builder warned this week that the sector cannot continue with the cross-subsidy model “at these levels” without an increase in grant funding from the government.