Private-sale homes built by housing associations down 46%

The number of homes being built by housing associations for sale on the open market has nearly halved in the past year, according to the National Housing Federation.

The NHF, which represents housing associations, said the number of properties in which construction began between July and September last year fell to 888, compared with  1,647 in the same period the previous year. This represents a fall of 46%.

However, the NHF’s figures also show that construction starts of affordable homes in the quarter were up 5% to 9,538 and up to 43,666 over the year. This is the highest annual total since the survey began in 2016.

These figures cover a period in which a number of associations announced plans to rein in their private-sale development programmes, due to extensive market uncertainty, particularly in London and the South-east.

The survey also found that, although construction of affordable housing had increased, total starts were down by 4% because of the reduction in the number of starts on homes for sale and rent at full market price. Starts on properties for market rent were down 29% to 187.

Last month Peabody chair Lord Kerslake said the cost of work to improve the  safety of buildings in the wake of the Grenfell fire was likely to affect the ability  of associations to provide more houses. Optivo, an association with 45,000 homes, said that it had halted the development of a private-sale scheme.

Housing association giant L&Q said last year that it was pausing its development programme because of weakness in the market.