Less than 100,000 homes to be built this year, say builders

This compares with a figure of 170,000 for 2007 and is the lowest number of newbuilds to be constructed since 1945.

Mark Clare, chief executive of Barratt, said: “The small guys have pulled out and the big companies…are not opening new developments.
“I think it certainly will be around 100,000 and if there’s a further deterioration, it will go under 100,000″.

Mr Clare’s sentiments were echoed by Alan Cherry, chairman of Countryside Properties, who identified the affordable housing sector as set to be the hardest hit, with builders scrapping plans to construct these properties as they “move to protect margins”.

The slowdown is predicted to limit the likelihood that Gordon Brown’s target for new homes will be met.

Mr Brown has set a target of 280,000 new homes to be built every year, which it is claimed are needed to house the three million new households expected by 2018.