Housebuilding set to be a centrepiece of the budget
By lucmin on 10th November 2017
House building has been gathering pace over the last year, and many regions have seen new home starts and completions on the rise over the last year. However the uncertainty caused by Brexit has led the London market in particular to fall back, and nationally building continues to fall short of the governments’ 200,000 a year target.
The National House Building Council, which represents 80% of new homes market suggests under 145,000 new homes were completed in the year to the end of September 2017, although they anticipate there are 177,950 plots currently under construction.
With a new methodology from the government indicating that 266,000 new homes are required each year to meet demand, housebuilding is set to be a centrepiece of the Chancellor’s budget on 22nd November, with new money and reforms to the planning system expected to feature.
The Budget may well look to also incentivise the UK’s construction industry, which has faced increasing pressure since Brexit vote. Share prices among the UK’s main housebuilders fell marginally following the 0.25% interest rate rise but may well rise again after November 22nd.