As the first-year anniversary of the credit crunch arrived, construction activity in Britain continued to fall. The Chartered Institute of Purchasing and Supply construction managers’ index fell for the fifth month in a row and during July fell at its fastest rate since 1997, while the housing activity sub-index also fell for an eighth consecutive month to its lowest level.

The fall in housebuilding threatens to raise house prices by 30 per cent between 2009 and 2012, according to the Centre for Economic Business Research. In its quarterly report, the CEBR estimate that house completions will fall by a fifth this year, and by 10 per cent in 2009. At the same time it expects house price to fall by 8 per cent this year and 4 next year, but will recover sharply amid the drop in construction and subsequent shortage of supply.

Gordon Brown is considering suspending stamp duty temporarily in an emergency measure to kickstart the housing market. The idea is being worked on by Treasury while Brown is in China for the Olympics, but leaked details are thought to suggest that all buyers, irrespective of the value of the duty, would be exempt.

The National Landlords’ Association is calling on interested parties to submit views on its draft Code of Practice for landlords involved in the sale and rent back market. The NLA said it is launching the consultation so interested parties can submit their opinions on how the code could be improved, and to show the seriousness it takes raising standards across the private rented sector.

Meanwhile Shelter has warned that as many as 9,000 more homeowners than official figures suggest are facing having their homes repossessed. The figures, first revealed in ROOF earlier this year, show that the number could be a fifth higher because of actions taken by second charge lenders. The Financial Services Authority is releasing its figures today on repossessions by regulated lenders, which does not include second charge data.

The Housing Corporation has found that more than half of housing association tenants can be defined as ‘vulnerable’, either because they had been homeless, or were sick or disabled, or had been forced to move from unsuitable accommodation. The study found that many tenants suffered from multiple issues, with an average of 1.4 vulnerabilities for every vulnerable person going into general housing.

Finally a couple have been forced to live in a shed on an allotment after they had their home repossessed, rather than accept the ‘run-down’ houses offered to them by their council. The couple, who have six children staying with relatives, had been shown 10 private rented homes, which they rejected as unsuitable. The council found them temporary accommodation, which is now no longer available and the couple moved back to the allotment. The council says there is nothing it can do.