27/04/2012 Inside Housing

Housing starts in 2012 will be fewer than half the number needed to meet demand, according to a construction forecast.

The Construction Products Association predicted that construction output will fall by almost 3 per cent this year across the board as cuts to the capital budget start to impact on industry activity.

The association said that just 114,500 homes are expected to start onsite in 2012, of which 19,100 will be affordable.

Although this is a significant increase on 2011, when there were fewer than 100,000 homes started, figures from the National Housing Federation suggest that 230,000 homes are needed each year to meet demand.

Michael Ankers, chief executive of the CPA, said: ‘With new orders for construction falling significantly at the end of last year, 2012 is going to be a difficult year for the industry.’