Private and public sector build rate falls

The National House Building Council has released figures showing that private sector starts fell by 1% in the last quarter.

At the same time, only 300 council homes were built in England last year.

The government aims for a 50% increase in house building year-on-year. This would result in 3 million new homes built by 2020.

Announcing the new target, prime minister Gordon Brown said he wished to "put affordable housing within the reach of not just the few, but the many."

He said that council land could be used for 60,000 new affordable homes in England, built by private bodies and councils.

Yvette Cooper, the housing minister said the government’s housing green paper would give local authorities more flexibility to build new homes. It would also ensure councils work with private companies and housing associations to provide affordable housing.

She said: "I don’t think anyone wants to see a return to the big old council estates with the private executive estates on the other side of town. What we want are mixed communities."

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