HOUSE completions have fallen to their lowest level in five years, new figures reveal.

The decline in housing output that started in June last year is accelerating with just over 3,000 homes completed in the first two months of the year, a drop of almost 65pc on the same period in 2007.

And housing guarantee registrations from the Department of the Environment show that output in counties Kildare and Wicklow have fallen by a massive 90pc, with steep drops for the country as a whole.

The figures show that just 3,053 houses and apartments have been registered so far this year, compared with 8,609 in 2007 -- a drop of 64.5pc.

Homebond and Premier registration provide 10-year guarantees to homeowners for structural defects and protection against loss of deposit. They are seen by the industry as the best gauge of how the market is performing as the homes are almost complete and ready for occupancy.

The fall-off will add to Finance Minister and Taoiseach-in-waiting Brian Cowen's woes as he attempts to balance the nation's finances amid an economic downturn.

Shortfall

Late last year, the Department of the Environment predicted that 20,000 fewer homes would be completed this year compared with 2007, with the minister facing a potential €2bn tax shortfall because of the slump in the construction sector.

Exchequer returns for the first three months of the year show that stamp duty receipts fell to almost €530m this year, compared with €925m in the same period in 2007. The Department of Finance said about one-third of the stamp duty figures related to sales of residential property.

The figures show that the decline in housing output has hit the greater Dublin area in particular, where demand is at its highest. They show that:

• Whole country house registration are running at 3,053, down 64.5pc on the first two months of 2007.
• Dublin house completions fell from 1,159 from 2,000, a drop of 19.5pc.
• Greater Dublin area completions are at 1,370 from 3,028, down 54.8pc.
• The steepest falls are in Kildare (down 90pc), with just 77 units completed, and Wicklow (down 88.5pc) with just 14 units finished.
• The lowest fall was in Meath where 120 homes were finished, compared with 140 (down 14.3pc).

Published in the Irish Independent , 07 April 2008