Flats Rise - slowly

The latest Government house building data shows that the number of starts rose in the first three months of this year to the best level since the second quarter of 2008. Despite this, starts are currently only running at around 50% of the level achieved at the high water mark of the previous cycle.

Commenting on the Government's house building data, Simon Rubinsohn, RICS chief economist said: "Significantly, most of the recent improvement has come from a turnaround in private sector development with output from housing associations remaining fairly stable. The lack of mortgage finance for first time buyers coupled with a shortage of development finance are two key factors holding back a more meaningful recovery in residential construction."