Materials shortages restrain construction

Shortages of construction materials are unlikely to ease for at least another 6-12 months, restraining activity in the renovation sector and among smaller housebuilders That is likely to cap housing starts for the next year or so at about 40,000 per quarter.
Andrew Wishart Property Economist
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UK Housing Market Data Response

IHS Markit/CIPS Construction PMI (Dec.)

The construction PMI declined last month to end the year on a negative note, more than erasing the gain made in November. Despite tentative signs that they are starting to ease, we expect labour and supply shortages will continue to dampen output in the near term.

7 January 2022

UK Housing Market Data Response

Halifax House Prices (Dec.)

Another substantial rise in the Halifax house price index in December ensured that the lender agreed with Nationwide that the rise in house prices over the 2021 calendar year was the strongest for at least 15 years. And there is no sign of prices losing momentum yet.

7 January 2022

UK Housing Market Update

UK house price growth set for a year of two halves

Strong demand will ensure that house prices maintain their momentum in the first half of the year. But rising mortgage rates will weigh on demand further out, causing prices to cool.

6 January 2022

More from Andrew Wishart

UK Housing Market Chart Book

Residential demand returns to London

While the UK has seen house prices boom over the past year, central London has not joined in as increased remote working led buyers to shun the capital for more space in the suburbs and further afield. But indicators of demand show that it is far too early to call time on city living, with demand now returning to the purchase and rental market despite prices remaining far higher relative to earnings than in other regions.

18 October 2021

UK Housing Market Data Response

Credit Conditions Survey (Q3 2021)

An ongoing improvement in credit availability may offset the increase in Bank Rate we expect in 2022. That offers support to our forecast that mortgage rates will remain low.

14 October 2021

UK Housing Market Data Response

RICS Residential Market Survey (Sep.)

The RICS survey suggests that the housing market has shrugged off the deterioration in sentiment about the broader economy so far. Demand stabilised at a high level in September while stock remained limited, so strong competition between buyers appears set to bid up house prices further in the near term.

14 October 2021
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