Housing starts rise in third quarter
Seasonally adjusted figures for housing starts across England have
shown an 18 per cent rise in the number of new houses under
construction in the three months to September 2009, compared with
the previous quarter.
Data released by the Communities and Local Government (CLG) was
greeted with cautious optimism by the Royal Institution of
Chartered Surveyors (RICS).
The organisation said that although the level of housing starts had
risen for three successive quarters, historically, the figures were
Chief economist at RICS Simon Rubinsohn warned that, at current
levels, there would not be enough new homes constructed across the
country to meet demand.
He said: "The resulting shortfall in new property coming to the
market represents a medium-term time bomb for the housing market,
potentially making it even harder for first-time buyers to take
that initial step on the property ladder."
Mr Rubinsohn added that the future lack of supply could push house
prices considerably higher and consequently squeeze large sections
of the population out of the property market.