The Royal Institution of Charted Surveyors’ (RICS) UK Construction Market Survey found that construction in the private housing sector has fallen at its fastest ever rate (-19%) in the survey’s 14-year history, putting Government targets for 3 million new homes by 2020 at risk.

The survey found that 39% more surveyors reported a fall in construction. The Government announced that the country needs at least 240,000 new homes each year from 2016 to reach its 3 million target. With 175,700 new homes built in 2007, below the current target of 200,000, and levels of construction falling significantly in the first half of 2008, these targets are beginning to look increasingly out of reach.

The survey also offered regional results which showed that all regions apart from the North showed considerable declines in the number of surveyors that reported a fall in levels of construction. The regions which suffered the fastest levels of decline were Wales, Scotland and Northern Ireland, with Scotland and Northern Ireland facing their fastest rate of decline for 12 years.

David Stubbs, senior economist for RICS, told PIN: “The Government currently needs to increase housing completions by 3.5% annually. In 2007 completions rose by 9.5% but there has been a massive fall back in housing starts since 2006 and this will affect the number of completions for the next two years. I think that Government targets are achievable but the Government will have a real mountain to climb as completions will have to rise by much more than 3.5%. It is too early to say how long this decline will continue but it would be premature for the Government to begin revising its targets. The industry will need to take stock in 2010 and see what shape it is left in.”