Applications to NHBC to start new homes have reached the highest point in almost a year.

NHBC latest statistics show they received 8,305 applications in June 2009 from builders to start new homes in the combined private and public sectors, the greatest number since July 2008 when 9,530 applications were received.

NHBC statistics for the three months to the end of June 2009 also revealed the fourth successive rolling quarter-on-quarter rise in applications to start new homes.

A total of 21,637 applications were received by NHBC to start new homes in the combined private and public sectors during the three months - a 12% increase on the previous rolling quarter March to May 2009 (19,286).

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Yet there is still a significant fluctuation in the number of applications across the UK, with figures for some regions, including Greater London and Merseyside, more than 50 per cent lower than a year ago.

Imtiaz Farookhi, NHBC Chief Executive, said: "Our figures show a significant improvement on the all-time low of December 2008 (4,259) as there has been a steady increase of applications in the first half of the year. While this is encouraging in the short-term, it is important to point out that house-building output is still greatly reduced compared to previous years.

"There needs to be a recovery in demand before housebuilders can increase the number of applications to build new homes to the levels that the Government¿s targets demand. Improving liquidity in the mortgage market and, in particular, the relaxation of strict lending terms that are currently applied to many would-be buyers, is a key step to attracting buyers back in to the market and ensuring a sustainable recovery."

(GK/JM)