06 March 2009
By Neil Merrick
The supply of new housing in England is almost certain to have dropped in 2008/09 after almost a decade of steady expansion, according to the Department for Communities and Local Government.
Figures published on February 27 show that 200,300 homes were built in 2007/08, compared with 193,100 the previous year. When changes to the use of existing properties are taken into account, along with demolitions, there was a net increase of 207,500 homes (up by 4% on 2006/07).
There has been a steady increase in housing in England since 2002/03, when net supply rose by 10% to 143,700.
But the rate of growth has slowed over the past two years. The 2007/08 increase was partly because 1,800 fewer homes were demolished.
According to the DCLG’s Net supply of housing 2007/08, a 19% reduction in completions of new homes in 2008 compared with the previous calendar year means net housing supply is likely to have fallen in 2008/09 for the first time in seven years.
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