SALES of new homes in France fell by 31% in the third quarter of 2012, according to figures from the Fédération des promoteurs immobiliers (FPI).
The federation represents eight-out-of-ten businesses promoting new builds, and their figures show the slow down has actually increased (-23% in the first quarter, -27% in the second) when compared with the same periods last year.
In 2012 it is expecting to see the lowest number of new build sales (between 68,000 and 72,000 units) in more than 15 years, when there were 62,900 in 1995 and far behind the record year of 2007 when 127,300 sales took place.
The federation believes that tax changes, higher building costs and the slow down in bank lending have all contributed to the fall.
With house sales falling steeply, and yet many people living in sub-standard accommodation, the federation wants to see more tax incentives and a focus on helping poorer families buy a new property.