UK house-building increasing ahead of other EU countries
Today’s house-building statistics released by the Department for Communities and Local Government (DCLG) show that the rate of UK house-building has risen significantly for the last five quarters in a row (since April 2013). This supports research by Deloitte that UK house-building is recovering faster than its European neighbours. The number of new homes starting construction in 2013 increased from 2012 in only three European Union (EU) countries – the UK was the highest (up 23.4%), followed by Belgium and Germany (12% and 7.2% respectively).
The Overview of European Residential Markets report shows that overall residential development across the EU declined over the last three years, with the number of completed homes falling from a rate of 3.9 per 1,000 citizens in 2011 to only 2.5 in 2013. The rate for new homes completed in the UK in 2013 was 18% below the EU average.
James Pargeter, head of residential projects at Deloitte Real Estate, said: “The UK is one of the very few EU countries in which housing construction new starts – per 1,000 people – actually increased from 2012 to 2013, and by nearly a quarter. Whilst we still need to build far more housing here in the UK, this increasing trend in construction is a positive sign that we are at least moving in the right direction. This is being maintained into 2014, with latest statistics showing annual housing construction starts are up by another 22% in the 12 months to June 2014. We expect this ongoing performance to continue to compare well to the rest of the EU in 2014.”
James continued: “On the whole, Europe’s residential sector is still recovering from the slump that followed the financial crisis in 2008, which resulted in historically low construction levels. Many countries continue to develop housing at below the European average, including the UK, but it is worth noting that France and Austria, even in continued decline with regard to housing starts, are completing around twice as many homes per 1,000 people.”
