UK house building slumps to lowest level since 1953
The number of new homes being built in the UK slumped to its lowest level since 1953 according to statistics released today. There were just over 18,000 housing starts in the first three months of 2009 and while it was up 13% on the previous quarter it was down a massive 44% on the same period one year ago. However it is the near 50% reduction over the last 12 months which has caught the eye of many economists and analysts, suggesting that the UK housing market is still struggling.
While house builders have suffered severely during the recent economic downturn there had been signs that the sector was about to turn the corner although these have been severely dented with today's news. The truth is that as the economy struggles, unemployment rises and consumers struggle to cover their everyday living costs, interest in the UK housing market has all but disappeared. While this will return in due course there are concerns that UK property prices could fall further before a significant bounce materialises.
The reduction in the number of new homes suggests that more and more people are sharing homes, renting homes or remaining with their parents. However, recent news also suggested that the buy to let market was under significant pressure as well.
Share this..
Related stories
How low can the UK public sector budget go?
Over the last few days it has become more and more apparent that George Osborne's initial slashing of the UK public sector budget will have a massive impact upon not only public sector workers but also private sector companies. This comes at a time when the UK economy is struggling to pull clear of the recession and more and more financial experts believe we are heading towards a double dip recess...
Read MoreWill house prices really fall further?
The question of house prices in the UK is one on the lips of many people amid concerns for the UK economy and the UK property sector in the short to medium term. There is no doubt that the latest surveys of the UK property sector seem to indicate trouble ahead but there is also no doubt that an increase in concern amongst UK consumers could effectively end up in a self fulfilling prophecy whereby...
Read MoreUnited Biscuits in £2 billion takeover talks
United Biscuits, the company behind KP nuts, Twiglets and Jaffa Cakes has today it is in talks regarding a possible £2 billion Chinese takeover. Chinese operation Bright Food has apparently approached the company's private equity owners, Blackstone and PAI, with regards to a potential purchase. The company was acquired for £1.6 billion back in 2006 although it is believed the operation has signi...
Read MoreBarclays introduces more competition into the mortgage sector
Barclays Bank will this week introduced significant competition into the UK mortgage sector using its Woolwich brand as the vehicle of choice. The company is the fifth-largest lender in the UK and will be introducing a mortgage base rate tracker which will be set at 1.99% above base. This currently equates to 2.49% and is by far and away the cheapest of the new mortgage trackers on the market at t...
Read MoreGordon Brown's employment plans come under serious pressure
Gordon Brown has today launched a new jobs initiative in the UK with £500 million due to be spent on getting the long-term unemployed back to work. The money will be used to increase training allowances and controversially offer employers a one-off payment of up to £2500 to take on new staff. However, the scheme has received a very critical response from the CBI and similar associations represen...
Read More