Official data indicates a consecutive decline in new-build construction output, posing challenges to government plans to deliver 1.5 million new homes by 2029. Figures from the Office for National Statistics show that private sector residential new-build completions in Britain decreased from 3,309 units in May to 3,103 in August.
This represents a 6.2% decline over the three-month period. Completions fell to 3,293 in June and 3,163 in July before reaching the August figure.
Terry Woodley, MD of Development Finance at Shawbrook Bank, noted that a fall in construction output suggests conditions remain mixed for the sector, with developers considering build costs, borrowing costs, and buyer demand. The decline follows warnings from major developers about scheme viability, including Taylor Wimpey's announcement that it had ceased building new homes in London due to development costs.
Real Estate:Scotland, an industry body, has warned that the viability of new housing in Scotland has reached "breaking point". In June, Savills projected that the government's 1.5 million homes target would be missed by over 660,000 units.