New research has found that the value of UK residential construction starts was 31 per cent lower in the three months to May than a year previous, highlighting the struggling position of the country's housing recovery.
Private housing project starts were down 32 per cent while social housing projects fell 28 per cent for the reported period.
"The shrinking pool of new social housing work is in stark contrast to the rapid government funded growth seen this time last year, and further retrenchment is expected through the year," said Allan Wilen, economics director at Glenigan.
According to the firm, the north-east and south-east of England suffered 76 per cent and 42 per cent declines respectively for private housing development starts. London, meanwhile, avoided any declines in private housing project starts, reflecting the strength of the wider housing market in the capital.
Mr Wilen added that although house prices and mortgage approvals are expected to remain weak near term, there will be a modest uplift in project starts during the second half of this year as developers open up new sites in anticipation of improved conditions in 2012.