Glimmer of Hope for New House-Building

London, United Kingdom, April 26, 2009 --(PR.com)-- Further to the Chancellor’s Budget statement and pledged housing boost on Wednesday, NHBC’s latest statistics show the first quarter-on-quarter rise in applications to start new homes for almost two years. 16,232 applications were received by NHBC during the first three months of 2009 – two per cent up on the final quarter of 2008 (15,866).

Imtiaz Farookhi, NHBC Chief Executive, said: “As well as the £1 billion package of measures announced in this week’s Budget, the housing industry can also take some heart from our first quarter figures which reveal a small increase in house-building activity, following seven successive quarters of decline. However, our experience tells us this may be more indicative of seasonal trends rather than a recovery at this stage.

“Nonetheless it holds out the hope, backed up by anecdotal evidence from builders that the market has stabilised, albeit at perilously low levels. The next couple of quarters will be key in determining whether or not this stabilisation is sustainable and will in turn lead to a partial recovery in volumes, even in the depths of the worst recession since the war.”

NHBC statistics also reveal that for the first time in March this year, the number of applications to start new homes in the public sector exceeded the number of private sector applications. 3,011 public sector applications were received by NHBC in March 2009, compared to 2,943 private sector applications – the first time this has occurred since NHBC’s accessible records began in the early 1980s.

NHBC statistics for the first quarter of 2009 also show:

· Regions in the South and East of England attracted most new build applications in the first three months of 2009, accounting for half (50%) of the overall UK volume (i)

· Of the 16,232 applications to start new homes in the combined private and public sectors during the three months to the end of March, 8,613 were related to private sector activity (i.e. excluding housing associations) – 70% lower than the same three-month period a year ago (29,137).

· Public sector figures for the three months to the end of March totalled 7,619 – 12% lower than the same period a year ago (8,702).

· New build completions in the combined private and public sectors totalled 25,777 in the three months to the end of March 2009 – 27% lower than the same period a year ago (35,205).

· The average number of daily sales of new homes in the UK from January to March 2009 was 325 – 33% lower than the same period a year ago (482).

NHBC publishes a quarterly booklet of its new house-building statistics – to subscribe visit www.nhbc.co.uk

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Note to editors:

(i) Total new builds registered in the South West, Greater London, South East and Eastern regions totals: 8,120
(ii) Full regional breakdown of new homes registered Jan to Mar 2009 by region / country:

Region

Jan to Mar 2009

Jan to Mar 2008

Percentage Increase / (-) Decrease

England - Regions

North East

605

1,253

-52%

North West

1,105

2,578

-57%

Merseyside

385

966

-60%

Yorkshire & the Humber

1,027

2,567

-60%

West Midlands

929

2,898

-68%

East Midlands

1,219

3,240

-62%

Eastern

2,570

4,157

-38%

South West

1,745

3,088

-43%

Greater London

1,304

4,427

-71%

South East

2,501

6,349

-61%

Totals for England

13,390

31,523

-58%

Scotland - Councils

1,446

4,004

-64%

Wales - Unitary Authorities

729

1,425

-49%

Northern Ireland - Counties

665

736

-10%

Isle of Man

2

151

-99%

Totals for UK

16,232

37,839

-57%

NHBC is the leading warranty and insurance provider for new homes in the UK. It was established 74 years ago as a non-profit distributing company. NHBC's primary purpose is to help raise standards to protect homeowners. NHBC's ten-year 'Buildmark' warranty covers more than 80% of new homes built in the UK and currently protects approximately 1.7 million homes.

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