The Glenigan Index for October rose by 2% compared to a year earlier. However the underlying value of residential starts fell by 6%.
Private housing project starts increased by just 1% in the third quarter of the year, compared to the same period in 2013. This, combined with a 17% fall in social housing starts, dragged the Glenigan Residential Index into minus figures for the first time since April 2013.
-- Advertisement --
The figures follow the release of the latest Nationwide House Price Index on Tuesday which reported a 0.2% drop in UK house prices in September, fuelling fears of a property market slowdown.
Allan Wilén, Economics Director at Glenigan, said: "Despite signs that the breakneck growth in house prices and purchasing activity is easing, market conditions remain positive for house builders.
"Signs of a stabilisation in new project starts underlines the challenge the government faces in meeting housing need."
(CD/JP)
