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Number of Housebuilding Projects Increased in the Lead up to the Referendum

New government figures show a slight up-tick in housebuilding projects started in the lead up to the Referendum vote, but a dip in home completions.

New government figures show a slight up-tick in housebuilding projects started in the lead up to the Referendum vote, but a dip in home completions.

The newest figures released by the Department for Communities and Local Government (DCLG) estimate that 34,920 homes were completed in 2016’s second quarter – a 7% increase from Q1, but 2% lower than in the same period a year ago.


139,030 homes were completed in the year to June, an increase of 6% compared to 2015; indicating a deficit of nearly 61,000 – far below the government’s target to build 200,000 homes per year.


Despite fears that Brexit may adversely impact activity in the housebuilding sector, figures for the three months to June actually show a slight pick-up in the number of housebuilding projects.


The number of housebuilding projects started in the UK from April to June was estimated at 36,400, a 2% increase from the previous quarter and a 6% annual rise.


Further allaying Brexit fears of a market slowdown, last month, Persimmon, the largest housebuilding company in the UK, reported a boost in their sales activity – a sign that people were still keen to buy.


Commenting on DCLG’s figures as they were released, Paul Smith from estate agents Haart said: “Today’s data shows that despite all the claims in the run-up to the referendum campaign the construction of new homes remained steady in the second quarter.


“It seems housebuilders were busy ploughing ahead with new sites despite the referendum noise, because the demand for new homes remained high.


“The referendum result will test the nerve of housebuilders, but it’s clear that since June the impact on economic confidence has been less than expected, with consumers continuing to spend and a housing market flatlining rather than falling.”

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