Statistics released this week by the National House-Building Council (NHBC) show that UK applications to build new homes increased by 26 percent in May 2002 when compared with figures for May last year. Given the current shortage of homes in the market and the projected shortfall in new developments over the coming years, the news will come as a welcome fillip to the housebuilding industry.

A total of 16,821 applications to start new homes in the UK were made by the combined public and private sectors, up 26 percent on the same month in 2001 (13,399). Private sector starts for the month rose to 15,258, showing a 27 percent increase on May 2001 (12,018). There were 1,563 UK housing association applications, a 13 percent increase on May of the previous year (1,381).

Imtiaz Farookhi, chief executive of NHBC, says: "NHBC May 2002 registrations are up by 26 percent on May 2001 and cumulative registrations in the first five months of 2002 are showing an 18 percent improvement on the same period in 2001. The most activity appears to have taken place in the counties of the South East where registration figures have doubled when compared to May 2001."

New build completions for both the public and private sectors totalled 13,491 in May 2002, a five percent increase on the same month last year (12,887). Additional information from NHBC reveals that an average of 605 new homes were sold each day during May 2002, a 13 percent increase on the same month last year (535).