The UK's listed housebuilders are projected to build the fewest new homes in a decade due to planning restrictions and high mortgage rates. This decline presents a challenge for the Labour government's ambitions to increase housing supply through planning reforms.
The UK’s listed housebuilders are on track to build the fewest new homes for sale in a decade, as planning rules and high mortgage rates hold the market back despite the new Labour government’s push to increase housing supply. The sector, excluding Vistry which focuses on affordable and rental housing, is forecast to complete just over 50,000 homes this year, the lowest level of output since 2013, according to Financial Times analysis of figures for seven companies compiled by Investec.
It follows a drop of one-fifth in 2023 in the aftermath of the Conservatives’ mini-budget in September 2022, which led to a surge in mortgage rates and slammed the brakes on the property market. The downturn in new home completions by these companies — which also include Bellway, Berkeley, Crest Nicholson and MJ Gleeson — is part of a wider contraction in housing output.
HOUSEBUILDING MORTGAGE RATES PLANNING REFORMS UK ECONOMY HOUSING MARKET
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