New home starts up 30%

The number of new homes started by builders in the most recent quarter is almost a third up on the same period in 2012, according to figures from the National House Building Council (NHBC).

The NHBC registered 34,356 starts in the three months to the end of November, up 30% on the 26,420 recorded at the same time last year. In November alone, while starts fell slightly on the previous month, they were still 20% ahead on the same month in 2012.

Yesterday the Council of Mortgage Lenders (CML) said mortgage lending in November was, at £17bn, 30% up on the previous year.

The CML said gross lending for 2013 will now reach £170 billion, compared to £156 billion originally forecast by the body for 2013, but still a far cry from the £363bn experienced at the height of the lending boom in 2007.

NHBC Commercial Director Richard Tamayo, said the data showed the strong and consistent volume growth witnessed throughout 2013 was continuing.

He said: “As the year draws to a close the industry can look back on what has been an overall upbeat year for the sector where we have seen a return of genuine confidence and a welcome contribution from various Government schemes such as Help to Buy to the UK’s housing volume growth.”

CML chief economist Bob Pannell said: “New rules hardwire in a more risk-averse lending environment for the future and so, while we expect lending to rise in line with better economic conditions, the next two years are unlikely to see lending levels getting very far above £200bn a year.”