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New home applications plummet 89 per cent

13:39, 30 October 2008

Stark evidence of the slow down in the housing market in Kent is revealed in new figures showing a dramatic slump in applications for new homes.

According to statistics released by the National House Builders Corporation (NHBC), there were just 66 applications for new-build starts in the county from developers in September compared with 604 in September 2007 - a drop of 89 per cent.

The figures also show over the last three months, the number of applications for new homes in the county fell to 740, from 1,747 last year, a drop of nearly 60 per cent.

However, while the figures are further evidence of a severe slow down in the housing market, the number of new homes being completed in Kent over the last three months was higher than for the same period in 2007.

According to the NHBC, the number of completions was 1,456 compared with 1,324 the previous year, a rise of 10 per cent.

The NHBC statistics are derived chiefly from its 20,000 registered builders who construct over 80 per cent of homes built in the UK and register with it to offer 10-year warranties on new homes.

As such, they are regarded as a reliable indicator of the state of the house-building industry.

The figures for Kent come as the Government begins its final review of the South East Plan, the blueprint that will determine how many homes should be built in the region between now and 2026.

That sets out a target of 122,000 homes for the county - 17,000 more than was originally envisaged. Kent has been earmarked for a major expansion in house-building, with Ashford and north Kent expected to see tens of thousands more homes.

Critics say those targets should be scaled back in the face of the economic slow down - but others argue the slow down threatens to make it more difficult for those struggling to get on to the housing ladder.

Karen Stalbow, from housing charity Shelter, said it "paints a worrying picture".

She added: "There is no doubt that the worsening economic climate is having a negative impact on the delivery of new housing developments across the country."

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