Construction News
14/07/2016
Brexit Uncertainty Fuels Decline In Housing Market
New figures have revealed the UK housing market has declined steeply in June after uncertainty fuelled by Brexit.
According to the latest RICS UK Residential Market Survey, buyer enquiries fell for a third consecutive month to their lowest reading since mid-2008.
With 36% more respondents reporting a fall in interest, there was a further decline in the number of properties coming available for sale across the country, with Northern Ireland being the exception.
Overall, 45% more chartered surveyors saw a fall in new houses in June, from a net balance of -31% in May.
With June also seeing a decline in sales, respondents expect this trend to continue with 26% forecasting a further drop over the next three months.
The data has resulted in sales expectations over the next 12 months turning negative for the first time in four years. With 12% more respondents expecting transactions to fall rather than rise, a dip in prices is only anticipated to persist in London and East Anglia.
Simon Rubinsohn, RICS chief economist, said: "Big events such as elections typically do unsettle markets so it is no surprise that the EU referendum has been associated with a downturn in activity.
"However, even without the build up to the vote and subsequent decision in favour of Brexit, it is likely that the housing numbers would have slowed during the second quarter of the year, following the rush in many parts of the country from buy to let investors to secure purchases ahead of the tax changes," he said.
"Our data does suggest that the dip in activity will persist over the coming months but the critical influence looking further ahead is how the economy performs in the wake of the uncertainty triggered by the vote to leave."
(LM/MH)
According to the latest RICS UK Residential Market Survey, buyer enquiries fell for a third consecutive month to their lowest reading since mid-2008.
With 36% more respondents reporting a fall in interest, there was a further decline in the number of properties coming available for sale across the country, with Northern Ireland being the exception.
Overall, 45% more chartered surveyors saw a fall in new houses in June, from a net balance of -31% in May.
With June also seeing a decline in sales, respondents expect this trend to continue with 26% forecasting a further drop over the next three months.
The data has resulted in sales expectations over the next 12 months turning negative for the first time in four years. With 12% more respondents expecting transactions to fall rather than rise, a dip in prices is only anticipated to persist in London and East Anglia.
Simon Rubinsohn, RICS chief economist, said: "Big events such as elections typically do unsettle markets so it is no surprise that the EU referendum has been associated with a downturn in activity.
"However, even without the build up to the vote and subsequent decision in favour of Brexit, it is likely that the housing numbers would have slowed during the second quarter of the year, following the rush in many parts of the country from buy to let investors to secure purchases ahead of the tax changes," he said.
"Our data does suggest that the dip in activity will persist over the coming months but the critical influence looking further ahead is how the economy performs in the wake of the uncertainty triggered by the vote to leave."
(LM/MH)
17/01/2025
Leeds Trinity University has officially opened its newly refurbished City Campus at 1 Trevelyan Square in Leeds.
Completed by GRAHAM Interior Fit-Out, the transformation of the central Leeds site introduces state-of-the-art facilities designed to improve learning and collaborate with industry partn
17/01/2025
Trammell Crow Company (TCC) has secured planning permission for a Grade A logistics scheme in Heywood, Greater Manchester, following a successful planning appeal.
The development will feature two state-of-the-art industrial and logistics buildings. One building will house two units measuring 4,796
17/01/2025
Poole-based developer AJC Group has celebrated a record-breaking 2024, delivering 100 affordable homes, a significant increase from the 72 units completed in the previous year.
Since 2023, AJC Group has completed and handed over 172 affordable homes across five sites.
In 2024 alone, the developer
17/01/2025
Plans for one of the most ambitious parks projects in London have taken a significant step forward, with Haringey Council securing nearly two additional acres of land around The Paddock nature reserve in Tottenham Hale.
The agreement with Thames Water marks a major milestone in the transformation o
17/01/2025
Islington Council has unveiled two draft guidance documents aimed at helping residents, businesses, and developers combat climate change by making buildings more energy efficient and fostering a greener, healthier borough.
The consultation seeks feedback on the draft Climate Action Supplementary Pl
17/01/2025
The City of Wolverhampton Council has unveiled a £98 million investment plan over the next five years to develop around 500 new homes across the city.
The proposal, part of the Housing Revenue Account (HRA) Business Plan, received Cabinet approval this week and now moves to Full Council for final
17/01/2025
Croydon Council has announced a significant milestone in the redevelopment of the Purley Pool site, with revised proposals submitted for a new leisure centre, later living housing, and the regeneration of the surrounding area.
A planning application for the site was initially submitted in 2024, pro
17/01/2025
The City of Wolverhampton Council has announced that demolition work has commenced on the New Park Village estate, marking the start of a major £40 million redevelopment project to transform outdated council housing.
Contractor DSM Demolition has begun pulling down poor-quality bungalows on Valley
17/01/2025
Hillingdon Council has acquired 12 new homes at Carpenters Court in Uxbridge.
Leader of Hillingdon Council, Cllr Ian Edwards and Cllr Steve Tuckwell, Cabinet Member for Planning, Housing and Growth, visited the site to officially mark the handover of the properties from local developer Kearns Devel
17/01/2025
Organisers of UK Construction Week (UKCW) have announced another major coup for the show's 10th anniversary year, with the news that UKCW London will be co-locating with the 14th edition of The Stone Show & Hard Surfaces, the principal industry event for surface design.
Established 26 years ago, th