Property News

‘Cuts will fuel shortage of housing’ alert

September 08, 2010

Berkshire will still remain short of houses, according to a leading industry expert, despite upbeat news from the Ggovernment.

A report issued by the Department for Communities and Local Government showed there was a jump of 13 per cent in housebuilding starts in England between April and June, over the previous quarter – a total of 28,590 houses.

But Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors (RICS), said there was good reason to question whether the positive trend will continue because of government cuts.

That, he said, would mean fewer publicly funded homes and he predicted a stabilising of the number of homes being built rather than an increase to match demand.

He said: “This is particularly important in Berkshire where investment in transport infrastructure in the Reading area is planned to support economic growth in the Thames Valley and where housing pressure is intense.”

Lack of housing in the South East, he said, could compromise local economies and force up prices.

- New homes website smartnewhomes.com has reported a shortage of homes coming up for sale despite the upbeat government statistics.

It said the number of new homes for sale now is at a record low.

Just 632 were added in England, Scotland and Wales in July.