Housing starts Home England

Housebuilding activity levels have experienced a decline over the past year, which will no doubt impact homeownership dreams and pose challenges for those still living on rent. Brexit's aftermath, including labour shortages and planning delays, along with rising raw material costs, have disrupted the construction sector in recent times. As the market slows and interest rates rise, accessing finance also continues to be tricky for SME developers, threatening diversity and innovation. Amidst these challenges, there is still a glimmer of hope though. Sustainable construction practices are gaining traction, emphasizing energy efficiency and eco-friendly materials. Technological advancements like modular construction are revolutionising productivity and cost-effectiveness. To revitalise the sector, policymakers must address the hurdles faced by small developers, streamline the planning processes and ensure urgent access to skilled labour and affordable financing options.

The data at this stage is irrelevant. Interest rates are rising to keep inflation in check, which is proving a fatal wound for SME property developers and house builders. Labour and material price increases and significant planning delays have resulted in small companies being on their last legs. Meanwhile, the great CBILs and BBLs giveaway has ensured everyone is loaded with long-term debt. Now there is a shortage of land at the right price, deals that don’t stack, banks that won’t or can’t lend and buyers that can’t afford to buy. The winners will be cash-rich investors, big corporates and landlords. As prices drop and affordability is crippled, we are likely to see prices drop sharply in the next 6 to 12 months. Families will lose their homes, businesses will fail and unemployment will rise. Riski Sunak doesn’t lead a traditional conservative government. His approach so far to economic problems has been to raise taxes and indulge in populist intervention.