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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.
Pieter Du Preez Property Economist
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UK Housing Market Update

Cost inflation to ease alongside new home volumes

After reaching a record-high in June, we think that inflation in builders’ costs will soon start to ease. But even as cost pressures subside, construction volumes will slump as the housing market slows.

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Withdrawal of affordability test is a wise move

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UK Commercial Property Data Response

Lending to commercial property (Nov.)

Declines in lending for both standing property and new developments resulted in total net lending moving back into negative territory in November. The outlook is for credit conditions to remain tight in the coming months, as uncertainty clouds the economic recovery.

4 January 2022

UK Commercial Property Update

Hotel occupancy will continue to struggle in 2022

International travel restrictions and domestic containment measures have dealt the hotel sector a massive blow over the last two years. The outlook for the sector is more positive, but a slow relaxation of restrictions, tourist hesitancy and reduced business travel mean that it is unlikely that the sector will recover fully in 2022.

22 December 2021

UK Commercial Property Update

Investment expected to edge higher in 2022

Investment activity has bounced back sharply after the initial COVID-19 shock and is on track to hit a three-year high in 2021. But we expect more modest growth in 2022 as softer economic activity and structural factors in some sectors weigh on transactions. Note: Central Bank Drop-In – The Fed, ECB and BoE are just some of the key central bank decisions expected in this packed week of meetings. Neil Shearing and a special panel of our chief economists will sift through the outcomes on Thursday, 16th December at 11:00 ET/16:00 GMT and discuss the monetary policy outlook for 2022.

15 December 2021
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