HOUSEBUILDING in Inverclyde has collapsed at an alarming rate since the economic downturn five years ago.

New figures in a council report show that since 2007, the number of new private homes built locally has fallen by 60 per cent.

There are now fears the steep fall could seriously impact on efforts to halt depopulation — with a warning from council officers that the house building programme will need to return to pre-recession rates to prevent this.

It has also been proposed that councillors might have to consider turning green belt land over to building firms to kickstart construction.

A report by the director of environment, regeneration and and resources Aubrey Fawcett, says: “Since 2008, private sector house building has been reduced considerably due to the impact of the economic downturn. Both supply and demand continue to be affected by risk-averse bank lending for finance credit for builders and for household mortgages.” Last year alone the number of private new homes dropped by a quarter and has fallen below 100 for the past three years in a row.

In the years leading up to the recession, there was an average of 300 homes built in Inverclyde every year — reaching 400 in 2007.

The failure of banks to lend money and constraints in government spending have been blamed for the crisis.

There have also been concerns about the lack of suitable local land available to housebuilders, which has dropped by half in the past five years.

Overall the report shows that the housing market is showing some signs of recovery, with a nine per cent increase in transactions.

But it is still nearly half of what it was prior to the downturn.

Officers also report that 25 per cent of those buying homes come from outwith Inverclyde — a key aim of the council’s housing strategy.

Most private homes have been built in Greenock and Inverkip.

One of the aims of the strategy is to redress the balance with regards to the number of houses built in the likes of Inverkip.

The council will look at restricting the supply of land in the west in the future, instead favouring other areas.