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HOUSING Building confidence in recovery

Nicholas Schoon
Tuesday 04 February 1997 19:02 EST
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The number of new homes being built in Britain has reached its highest level for over two years, according to government statistics. Ministers claimed this was further evidence of a strong recovery in the housing market, with a 33 per cent rise in the last quarter of 1996, compared with the same period a year earlier.

The number of new homes started in the whole of 1996 was put at 174,200, 4 per cent higher than in 1995. The latest figures for homes under construction are broadly in line with the Government's census-based prediction that 4.4 million extra homes are needed in England over the next 25 years.

But these statistics also show that while private-sector house construction is gathering strength, public-sector building by housing associations for poorer families remains in a slump, following severe cuts in government grants.

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