Construction of public housing falls

Public housing works fell by nearly 10 per cent in January to March, while total construction workloads increased by five per cent.

Private housing and private commercial reported increases of eight per cent and 17 per cent respectively.

The survey said: ‘There is a divergence sectorally, with private housing and private commercial leading the recovery with rising workloads and public sector works continuing to decline.’

The survey also found differences geographically with London and the south east of England seeing rises of six per cent and 24 per cent respectively, but declines for Northern Ireland and Scotland of 68 per cent and 10 per cent.

However, figures released by the Department for Communities and Local Government show the country is starting to build more homes again with over 29,000 house building starts in the first quarter of 2011.

The total was an increase of 26 per cent compared with the previous quarter, and the highest quarterly figure for almost three years. The report also said annual housing starts rose 22 per cent compared with the 12 months to March 2010.

Mr Shapps said the results show reasons for optimism in the construction sector, but stressed there would be no room for complacency in the drive to build more homes saying the previous system of top down control left the country with the lowest rate of peacetime house building since 1923-4.

Mr Shapps said: ‘Today’s figures are welcome, but they are only the start of the story. I’m determined that there should be no slowing down on the road to recovery, so we will continue dismantling the failed Regional Strategies and their legacy of animosity between developers and communities, and return powers to the local level so communities can drive economic growth and create new jobs in their area.

‘The construction industry that builds the homes this country desperately needs can also expect more help. We will work closely with house builders and listen to their suggestions about how we can improve, and continue to strip away the bureaucracy and red tape that for so long has piled unfair costs on this vital sector of our economy.

‘The first cash payments under the New Homes Bonus have been made, so communities can experience the benefits that growth brings. Totalling almost £200 million, these payments are a significant amount of funding at a time when public finances are tight, and it’s now crucial that councils talk to their communities about how they would like to spend this money, and what growth they would like to see in future.’