New house starts slump 70% in 12 months

The number of new houses built in Ireland over the last 12 months has fallen by over 70 per cent, according to data released …

The number of new houses built in Ireland over the last 12 months has fallen by over 70 per cent, according to data released today by HomeBond, the agency which registers home starts.

In the three months to August, HomeBond registered only 1,800 units, 73 per cent less than the same period in 2007 and the lowest on record for any three months since the figures were first compiled in 1995.

John Sheehan of NCB Stockbrokers said the trend remains extremely weak as builders defer pursuing new schemes, pending clearance of existing inventory.

"Given the lagged nature of activity, this points to weakness in Irish residential activity through 2008 and 2009 recovery at the earliest in 2010," Mr Sheehan said.

Chief economist with Goodbody Stockbrokers Dermot O'Leary said: "It must be pointed out once again that one-off housing commencements and local authority housing are not included in the registrations figures and these areas have been performing relatively better during the slowdown."

"For this reason, completions will not fall to the extent that the registrations data are suggesting," he said.