June’s 61% drop in new homes built

UNCERTAINTY over the state of the property market intensified yesterday as falling demand for homes led to a record 61% slump in the number of new houses being built.

As a row continued between those within the property sector and some more pessimistic forecasters, Davy Stockbrokers reported a record 61% fall in housing starts in June compared with the same month last year.

While a slowdown in housing supply has previously led to higher prices in a demand-led market, this time the building drop is being blamed on a fall in demand, fed by uncertainty along with eight interest rate hikes since late 2005.