Marketing No Comments

Scottish economy subdued ‘until the fog of Brexit has lifted’

The SCOTTISH economy will remain subdued “until the fog of Brexit has lifted”, the country’s chief economist has warned.

In his latest State of the Economy report, Gary Gillespie reported business confidence was “subdued”, while households’ expectations for the economy have dropped to their lowest level since 2013.

Whether or not the new prime minister can get the Withdrawal Agreement through the House of Commons head of the October 31 Brexit deadline is “central to the outlook for Scotland’s economy over the next 12 to 24 months”, he added.

The Scottish Government’s chief economic adviser said if that does not happen and the UK is unable to secure a further extension to its membership of the European Union the country risks being pushed into recession, with a “corresponding sharp rise in unemployment”.

While the report noted GDP growth north of the border had strengthened to 0.5% in the first three months of 2019, and the employment rate had risen to a record 75.9%, the chief economist said: “Until the fog of Brexit is lifted, growth in the Scottish and UK economies will remain subdued and potentially more exposed to any downturns in international demand and growth.”

The rise in GDP in the first three months of 2019 was “driven in part by temporary factors”, such as pre-Brexit stockpiling and firms completing orders ahead of the original EU exit date of March 29.

Uncertainty caused by the Brexit process has “impacted business investment, with companies pausing key investment programmes”, the report added.

The chief economist also noted business investment has fallen in both Scotland and the UK “for a number of quarters”, saying that since the 2016 referendum “investment has lagged well behind the growth observed in other G7 countries”.

With the number of foreign direct investment projects in Scotland falling by 19% in 2018, he warned “these trends pose a significant risk for future output growth and productivity if they persist”.

The report stressed: “The short-term outlook for the economy continues to be dominated by Brexit uncertainty and the form any exit takes.”

As well as “subdued business confidence”, consumer confidence in Scotland has “continued to weaken over the past year”.

The report noted: “Consumer sentiment has been negative in Scotland since the EU referendum in 2016 and notably weakened in 2018 and into the start of 2019.

“The latest data for Q1 2019 showed a fourth consecutive quarterly fall in consumer sentiment and the indicator now stands at -9.6, its lowest level since the series began in 2013.

“Looking more broadly at households expectations for the next 12 months, sentiment relating to the performance of the Scottish economy and household finances have both fallen to their lowest levels since the series began in 2013 and have weakened for the past four consecutive quarters.”

Finance Secretary Derek Mackay said while the Scottish economy “continues to perform well”, its stability was “seriously threatened by the UK Government’s EU exit plans which, in whatever form they take, will damage the Scottish economy”.

He said: “As this report highlights, business investment has fallen in Scotland since the EU referendum and investment has lagged well behind the growth of other G7 countries.

“The Scottish Government has been clear and consistent that the best option for the future well-being and prosperity of Scotland is to stay in the European Union, otherwise we will see damage to our economy and the future prospects of the people of Scotland suffering.

“The Scottish Government will continue to do all we can to provide as much reassurance as possible as we face the potential of yet further uncertainty over the UK’s EU exit.”

Source: The National

Marketing No Comments

The housing market – and the Brexit backdrop

As an economist who has worked in the housing market for more than 15 years, I used to be frequently asked about what interest rates were likely to do.

I now tend to be asked about what Brexit will do. Anticipating interest rate changes a decade ago was not easy, as they were much more variable than they are now, but it was a lot easier than anticipating Brexit.

When I wrote our recent Spring/Summer Market Briefing, I began: “Despite the travails of Brexit, the Scottish housing market has continued to perform strongly…” I got an immediate response from a client saying, “Despite Brexit, ha, ha, ha!”

Obviously, my pro-Brexit client was intimating that people like me thought that Brexit would prove disastrous and were proving ourselves wrong with our own market analysis. But I did not say that – Rettie & Co does not have a position on Brexit. I said: “Despite the travails of Brexit.” It does not matter if you are pro or anti-Brexit, it is clear the painful and laborious process is clouding the market in uncertainty.

In such circumstances, you would expect economic activity to weaken and for this to have a knock-on effect on the housing market. However, the market so far this year has been resilient.

The data for the first quarter of 2019 highlighted that transactions and average prices across Scotland were broadly the same against the same period last year – not bad, given the market uncertainty.

This picture is true in both Edinburgh and Glasgow. In Aberdeen, where the housing market has been battered by the reduced price of oil, there was a bounce-back of 14 per cent in market activity, with average prices on a par with a year ago.

This strongly hints at a much sought-after stabilisation that Aberdeen estate agents have been yearning for. Dundee, by contrast, is fast-emerging as a standout housing location with average house prices 10 per cent up on a year ago, making it one of the strongest-performing markets in the whole of the UK. Elsewhere, areas in commuter hinterlands such as East and West Lothian in the East and West Dunbartonshire in the West have seen double-digit growth in transaction levels.

However, there are concerns. Residential Land & Building Transaction Tax (LBTT) revenue in the first quarter of 2019 was down nearly 6 per cent on the same period last year despite a rising number of returns.

The bulk (nearly three-quarters) of LBTT revenue is collected from the market above £325,000 (just 10 per cent of total sales). These statistics clearly signal a softening of the upper part of the market.

Experience from other economic slowdowns shows that it is the top end of the market that tends to get hit first and hardest; in fact, it is a clear economic bellwether.

As we argued in our recent annual briefing on LBTT, a concern for the Scottish Government is that its taxation strategy has been to shift more of the tax take onto a smaller number of payers.

This remains a dangerous course for a government potentially facing a budget blackhole over the next few years, as highlighted by the Scottish Fiscal Commission recently. In my view, on LBTT at least, the government has too many of its eggs in too small a basket. The effects of fiscal drag will likely push more eggs into this basket unless the Scottish Government acts to make at least an inflationary adjustment to the bands on which LBTT is paid. With the interminable Conservative leadership contest taking over the front pages and the fact that we can all pour through passport control without much fuss this summer, perhaps the market is shrugging off Brexit for at least a little while.

But it will be back and it will certainly test market resilience later this year. And I still do not have an answer yet as to what it will do.

By John Boyle

Source: Scotsman

parliament economic growth UK business UK wage growth Sterling
Marketing No Comments

UK business optimism plummets

Growth expectations among UK businesses has fallen to 49%, from 69% last year

Among private businesses in the UK, optimism is rapidly diminishing, according to new research from PwC. It is falling at more than twice the rate of European counterparts.

PwC polled 2,400 organisations in 31 countries for its European Private Business Survey. Among the 220 UK firms, growth expectations fell to less than half, having been at 69% last year.

Although growth expectations among the other countries also fell, it was by only 8%, from 65% in 2018 to 57% now.

The survey also revealed that across Europe, businesses are facing a widening skills gap. In the UK, PwC estimates, the lack of appropriate skill costs an annual £29bn in lost revenue.

Brexit also remains a concern for businesses. Suzi Woolfson, PwC’s UK private business leader, pointed out that “until there is some certainty around it, businesses will continue to tread carefully.”

Woolfson also highlighted the possibilities that come from uncertainty, “those companies that are agile and flexible can benefit enormously”, she said.

Commenting on the skills shortage that the survey threw light on, she said, “Across Europe we are seeing a skills shortage becoming a significant issue for private businesses and in the UK, while companies say the problem is improving in comparison to last year, overall the impact is still significant”.

UK private businesses are more open than those in Europe to funding from private equity or venture capital for digitalisation, the survey found.

Woolfson said, “Our survey shows that UK private businesses recognise the importance of technology to their long term aspirations, which is why it is important to invest in technology and data to ensure real commercial improvements in systems and processes.

“With their ability to be nimble and decisive, private companies are well-placed to make strategic investments which can lead to substantial benefits”, she added.

By Frances Ball

Source: Economia

Marketing No Comments

Fixed rate mortgages become more popular

Fixed rate mortgage deals are becoming more and more popular as eight in ten mortgage shoppers are considering the option.

This month’s Experian Credit Barometer, out yesterday (June 20), showed May saw 81 per cent of searches directed at fixed rates, compared with 72 per cent in March and 77 per cent in April.

In comparison, interest for variable repayment rates slowed with only 10 per cent searching for a tracker and 9 per cent for a variable mortgage in the month.

Last year, The Bank of England raised interest rates for the first time in 10 years while governor Mark Carney has previously said interest rates were likely to rise twice more over the next three years.

The possibility of rate rises could mean homeowners increasingly value the stability that longer term fixed rate mortgages provide.

The Bank yesterday (June 20) announced it was holding the base rate at 0.75 per cent, which could encourage more savers to lock in the low rates while they can.

Amir Goshtai, managing director of Experian Marketplace & Affinity, said: “People want certainty when it comes to their finances, especially in times of such economic uncertainty.

“Rising popularity in fixed term mortgages and high searches for loans for debt consolidation tell us borrowers are looking for low, fixed monthly payments to effectively manage their outgoings and keep control of their finances.

“Interest rates for mortgages and loans are relatively low so now is a good time for borrowers to shop around and seriously consider locking-in their monthly repayments.”

It emerged in February that the number of fixed rate residential mortgages available has reached a 12-year high, as 5,214 fixed rates were available on the market compared with 4,570 in the previous year.

Daniel White director of White Financial Services said two-year rates have always been a popular choice because they provide “the flexibility of allowing a client to review over a shorter term”.

However, he added it is “the longer term security in a period of uncertainty” that is pushing more mortgage shoppers towards longer term fixed rates.

Jonathan Harris of mortgage broker Anderson Harris, said five-year deals were proving particularly popular at the moment.

He said: “The attraction is they give protection from potential rises for the medium term, without locking the borrower in for too long.”

Providers have also increasingly been introducing 10 year plans in order to meet growing demand for this option.

Research from consumer champion Which out earlier this year showed the number of providers offering such a mortgage had doubled in the year to January, to 14 providers.

For example, Santander was the latest lender to add a long-term fixed rate mortgage to its range with the launch of a ten-year deal in May this year.

By Eveline Vouillemin

Source: FT Adviser

House prices
Marketing No Comments

House prices jump in Telford as ‘Brexit leads to lack of supply’

House prices have jumped in Telford, and an industry expert has said the rises are partly due to the Brexit referendum.

Figures for April show that Telford & Wrekin has seen average house prices rise by 6.4 per cent on the previous year, to £170,358 – well above the UK average increase of 1.4 per cent.

Shropshire prices matched the national increase at 1.4 per cent, rising to £210,194. Powys’ has also seen a significant hike, with a 5.1 per cent rise to an average of £189,043.

Jo Culley, managing director at DB Roberts, which has offices across the region, including at Shrewsbury, Shifnal, and Telford, said: “Certainly in the last 12 months there has been a lack of general supply of property onto the market. If you have more buyers than sellers then it forces prices up.

“That is probably the simple reason for any price increase the market might have seen.”

Reluctant

Mrs Culley said that there had been a reduction in the number of people looking to sell their homes in the wake of the EU referendum.

She said: “I think we have been a little reluctant, in a Brexit landscape, to move for the sake of moving.

“Most of the people instructing us to sell since Brexit have been doing so because they have to move, not because they want to.”

Tony Morris-Eyton, head of office for Savills in the West Midlands, said he believed part of the increase was down to natural correction in the market.

He said: “House values in the South rose significantly greater than our part of the world and part of this is a catching up process. The differential between us and particularly the South is beginning to narrow.”

In the West Midlands the rise was ahead of the national average at 2.2 per cent with the average house price in the region reaching £195,498.

The average UK house price was £229,000 in April, according to the figures released jointly by the Office for National Statistics, Land Registry and other bodies.

Nationally property values increased by 0.7 per cent month on month.

Strengthened

The weakest annual growth was in London, where prices fell by 1.2 per cent over the year. In the South East, prices fell by 0.8 per cent.

House prices increased annually by 1.1 per cent in England, 1.6 per cent in Scotland and 3.5 per cent in Northern Ireland.

In England, the East Midlands saw the strongest annual house price growth in April, with a 2.9 per cent increase.

ONS head of inflation Mike Hardie said: “Annual house price growth remained subdued but was strong in Wales, which showed a pronounced increase on the month.

“In London, house prices continued to fall over the year but rental price growth there strengthened.”

Challenging

Jamie Durham, an economist at PwC, said: “The house price growth story is split between the South East and the rest of the country… While prices are falling in the South East, prices elsewhere are growing.”

Howard Archer, chief economic adviser at the EY Item Club, said: “The ONS data do little to change the overall impression that the housing market is still finding life challenging as buyer caution amid still relatively challenging conditions is being reinforced by Brexit, political and economic uncertainties – although there are significant variations across regions with the overall picture being dragged down by the weakness in London and the South East.”

Jonathan Harris, director of mortgage broker Anderson Harris, said: “There is still a significant premium to pay to buy property in London and the South East, with first-time buyers increasingly having to call upon the ‘Bank of Mum and Dad’ for help with the deposit.”

Gareth Lewis, commercial director of property lender MT Finance, said: “House price growth is picking up outside of London and the South East, which is encouraging as it creates more balance to the country as a whole, although London prices still remain at a premium.

“Hotspots for investors include Middlesbrough, Nottingham, Newcastle and university areas, where the transactional flow has greatly increased as investors chase yield.

“Values are therefore creeping up in response to greater demand for property in those areas.”

By Dominic Robertson

Source: Shropshire Star

Marketing No Comments

Rents rise as buy-to-let clampdown begins to hit landlord pockets

Landlords are raising rents after being hit by the buy-to-let clampdown in their tax bills.

ONS data shows rents rose 0.9% in the 12 months to May 2019, the highest annual growth since September 2017.

Across the UK, tenants saw rents rise 1.3% annually in May, up from 1.2% a month before.

Northern Ireland had the highest annual growth rate at 2.1%.

In England, private rental prices grew by 1.3% in the 12 months to May 2019, up from 1.2% in April 2019.

Rents grew by 1.1% annually in Wales, unchanged since February 2019, and Scotland saw a 0.8% increase, up from 0.7% previously.

Commenting on the figures, Kate Davies, executive director of the Intermediary Mortgage Lenders Association (IMLA), said: “After filing their 2017-18 tax returns, landlords are becoming more aware that ongoing changes to mortgage interest tax relief are increasing the financial challenges facing them.

“This is leading more property investors to reconsider their options and the pressure on some to increase rental prices will be mounting. We do not see it as a coincidence that several rental indices show that, following a protracted period of softness, average rents in London are once again increasing.

“Despite the current political and economic uncertainty, we hope a change in leadership will be seen as an opportunity for the Government to demonstrate its support for landlords, which goes hand-in-hand with helping people get on the property ladder.

“Growing pressure on landlords to increase rents in order to make ends meet will ultimately have a detrimental effect on renters’ ability to save for deposits to buy their own homes.

“The Government should be careful to ensure that any future regulation around the private rental market does not further shrink the appetite of private landlords to satisfy the growing demand of tenants.”

By MARC SHOFFMAN

Source: Property Industry Eye

20 1239420 960 720
Marketing No Comments

UK property demand may be ‘breaking through’, says report

House prices in England and Wales returned to annual growth with a 0.3% rise in May as foreign buyers returned to the property market and demand may be beginning to break through, according to a report released on Monday.

The Acadata house price index said prices grew on an annual basis for the first time since December as a favourable exchange rate and reduced prices have precipitated the return of foreign buyers, particularly in London where those from overseas were undeterred by a 0.2% annual drop in regional prices.

The report added that “there is some evidence that pent-up demand held back by events of the last few months is breaking through” despite the lack of progress in Westminster.

However, overall sales in the capital over the three month period ended May were 3% below the same period last year and 12% below the period in 2017 as prospective buyers and sellers in the Greater London region remain hesitant to take the plunge.

While record levels of employment, recent wage growth and strong competition in the mortgage market have offered some households more buying power, many potential buyers are still struggling to get a mortgage.

“In reality, the positive news on average earnings masks considerable divides – with younger and lower- and middle-income households not enjoying the same level of income inflation as those in higher wage brackets,” said the report.

Overall, average prices stood at £300,866 during the month, which constituted a 0.1% drop compared to the month before, as Wales, the North West of England and the East Midlands led annual growth with respective price increases of 3.1%, 2.5% and 1.5%.

By Duncan Ferris

Source: ShareCast

Marketing No Comments

Post-Brexit binge in commercial property?

Pent up demand could see a boost to the commercial property market post-Brexit, according to new analysis of the commercial property market from Shawbrook Bank.

The ‘UK Commercial Property Market Report‘1, produced by Shawbrook Bank and compiled by the Centre for Economics and Business Research (CEBR) assesses the state of the current commercial property market, exploring the various sub-sectors comprising the market, historic and future trends, and the impact of the changing political landscape.

The Shawbrook report shows that uncertainty over Brexit has weighed on the commercial property sector in recent quarters, as owners and tenants take stock. But despite activity slowing, the market remains a profitable place to invest and deliver a solid income over the medium to long term. Over the past 18 years, the commercial property market has returned 308% to investors compared to 209% for the FTSE100, and yields have remained stable; average yields across the commercial property sector have stood nearly unchanged at 5% since 2015.

Rob Lankey, Director of Commercial Property Investment, Shawbrook comments: “Although uncertainty is present, the commercial property market remains fundamentally resilient in terms of both yield and capital growth. Despite investors taking a wait-and-see approach, we believe many are stockpiling cash and simply postponing activity until we have a definitive Brexit outcome.

“With the long-term view and fundamentals of the commercial property market still compelling, I would go as far to say that we will see a ‘post-Brexit binge’ from professional investors looking to utilise the cash they have stockpiled to take advantage of investment opportunities in the post Brexit landscape. However, not every commercial property investment will automatically generate great returns. Doing your homework on potential investments is more important than ever. There are good and bad opportunities within all sectors.”

Factories, warehouses and other industrial properties have shown the most resilience

Underpinning the resilience of the commercial property market are factories, warehouses and other industrial properties, which over the past few years have become the best performing sector over one, three and five years, with yields in line with the commercial sector more broadly2. Stockpiling activity and strong demand for warehouses from online retailers have helped the sector to withstand economic headwinds to date, however, the unwinding of the stockpiling effect poses a risk to this asset class as does a no-deal Brexit, which would severely harm many of the manufacturers that are the current tenants of the industrial assets.

Table 1: capital value growth across industrial, retail and office properties

Capital value growth
Cumulative capital value growth Industrial Retail Office
One year: Jan 2018- Jan 2019 12% -8% 3%
Three years: Jan 2016- Jan 2019 31% -11% 5%
Five years: Jan 2014- Jan 2019 71% 1% 37%

Table 2: (Initial) yields across industrial, retail and office properties

(Initial) Yields
Industrial Retail Office
Jan-19 4.6% 5.7% 4.5%
Jan-16 5.4% 5.3% 4.0%
Jan-14 6.6% 5.7% 5.1%

 Growing popularity of serviced offices

In the office sector, demand has been strong following the recovery from the last recession. The increasing importance of professional and business services for the UK’s economy provides a strong macroeconomic background for assets in this category and growing popularity of serviced offices is becoming particularly important as new business start-ups and smaller businesses struggle to keep up with rising rents in cities such as London and Manchester and as a result are looking for more flexible spaces.

Retail needs to adapt to remain relevant

For retail properties, a number of factors have come together to create a ‘perfect storm’. On the back of a decade of very low real wage growth, consumers have turned away from the high street and increasingly do their shopping online. Recent research on high streets in Great Britain by the ONS shows that over half (56%) of addresses on high streets are now residential.3

Rob Lankey adds: “The challenges faced by retail won’t be solved by a shift to residential, but the trend will be a significant boost to opportunities for property owners. Irrespective of broad capital value trends, retail property can continue to provide strong rental returns for landlords where the combination of tenant and property location are meeting modern consumer demand. For investors of mixed-use space to realise the full benefits that can be had, there will have to be a level of collaboration in the property sector moving forward. Another beneficiary of the declining high street will be for shared office spaces, such as WeWork which would likely use former retail premises in UK town and city centres”.

Shawbrook Head of Products & Markets, Daryl Norkett adds: “Broadly, if we look at the sub-sectors that are performing today and consider the analysis brought to life in this research, there is opportunity for experienced investors to grow and diversify their portfolios. However, it is important to highlight that the current market requires a certain level of expertise, knowledge, understanding and commitment of time in order to make the right property investment decisions but if you do your homework, it can be a great investment.”

Source: Property 118

UK house prices
Marketing No Comments

UK house prices near record high for new homes on market

UK house prices for newly-marketed properties neared a record high this month, spurred on by a cluster of UK regions shrugging off recent political uncertainty.

Four northern regions witnessed their highest ever asking prices in June, pushing property prices nationally up 0.3 per cent to just £91 below June 2018’s record figure of £309,439.

According to Rightmove, the regions of East Midlands, the North West, Wales and Yorkshire & the Humber all enjoyed record asking prices.

That is despite newly-marketed houses in the capital falling in price by an average of 0.4 per cent this month.

“More buoyant markets in the north and midlands are helping to nudge up prices due to the seemingly relentless strength of buyer demand,” said Miles Shipside, Rightmove director and housing market analyst.

“Buyers in four regions are seeing higher new seller asking prices on average than ever before.”

In London, Shipside blamed a combination of stretched affordability, moving costs including stamp duty and Brexit uncertainty for the 0.4 per cent drop in the capital, where prices in June have fallen for the last three years.

Brian Murphy, head of lending at the Mortgage Advice Bureau, said: “The complex current market dynamic is driven by varying levels of consumer sentiment.

“One might suggest that those areas which are seeing more ambitious asking prices are somewhat insulated from the ongoing turbulence at Westminster – that or buyers and sellers in those areas are opting to ignore the headlines and carry on regardless, according to their personal circumstances.”

The scale of the UK’s housing problems were underlined this morning, with new research showing that less than one in 10 towns offer affordable property for nurses, teachers, paramedics, police and firefighters.

Some eight per cent of towns offer affordable housing for key public sector roles, tumbling from 24 per cent five years ago.

Central London remained the least affordable area, while the top three most affordable towns in Britain for key workers are all in the north west.

Halifax, which produced the results, said the gap is due to UK house prices outpacing earnings growth for public sector workers.

Average house prices have risen by 32 per cent compared to key worker average annual earnings growth of seven per cent.

By Sebastian McCarthy

Source: City AM

Marketing No Comments

Homes England delivers four year high of housing completions

From 1 April 2018 to 31 March 2019 there were more houses being built and completed, including affordable homes, Homes England’s housing statistics have shown.

There were 45,692 housing starts, the highest level for nine years, and 40,289 housing completions delivered through Homes England programmes, excluding London, the highest for four years.

Some 30,563 or 67% of housing starts on site in 2018-19 were for affordable homes, up 10% year-on-year and the highest for five years.

Mark Dyason, managing director of the development finance specialist, Thistle Finance, said: “Based on this evidence, homes in England are finally starting to be built in earnest.

“For housing start levels to be the highest in nine years, despite the ever-present uncertainty of Brexit, shows there’s hope for the property market yet.

“So extreme is the supply deficit that developers are proceeding with projects as they feel hedged against the political headwinds. Crucially, homes are not just being built in greater numbers but are selling in greater numbers, with the increase in affordable housing especially welcome.

“Help to Buy is attracting growing criticism at present but it has without doubt had an impact on purchase levels in recent years. It helps that for experienced and financially strong developers there are opportunities aplenty and no shortage of finance options.

“While there is political stasis, the development finance market remains fluid and this is showing through in these strong numbers.”

Some 17,772 affordable homes started in 2018-19 were for affordable rent, an increase of 4% on the 17,159 started in 2017-18. A further 11,560 were for intermediate affordable housing schemes, including Shared Ownership and Rent to Buy, 24% more year-on-year.

The remaining 1,231 were for social rent, a decrease of 12% on the 1,406 started in 2017-18.

Of the affordable homes started in 2018-19, the highest delivering programmes were: Shared Ownership and Affordable Homes Programme (SOAHP) with 89%, up from 71% in 2017-18, and the Affordable Homes Programme (AHP) with 4.6%, down from 21% in 2017-18.

Some 28,710 (71%) of housing completions in 2018-19 were for affordable homes, 11% more year-on-year and the highest for four years.

In addition, 18,895 affordable homes completed in 2018-19 were for affordable rent, 4% fewer than the year before. A further 8,854 were for intermediate affordable housing schemes, including Shared Ownership and Rent to Buy, an increase of 75% on the 5,069 completed in 2017-18.

The remaining 961 were for Social Rent, a 1% reduction on the 970 completed in 2017-18. Of the affordable homes completed in 2018-19, the highest delivering programmes were the SOAHP 2016-21 with 55% and the AHP 2015-18 with 39%.

Joseph Daniels, founder of modular developer Project Etopia, added: “Homes England are taking on the housing crisis with a sustained dose of horsepower.

“The nine-year high in its house building rate sends a clear signal that it has built up a head of steam, which is helping to propel the market and housing supply forward.

“Good progress in the past four years, with starts rising year-on-year, takes its building levels almost back to the high seen just after the financial crisis although there is still a long way to go to satisfy the existing deficit.

“All eyes are on this rebound, in the hope it marks the start of a concerted push to new levels of affordable home building in England, coinciding as it does with a renewed political focus on the housing crisis in recent years.

“Although the government’s overall pace of building remains roughly 10,000 homes off target, Homes England could make considerable inroads here and close this gap significantly over the next few years.”

By Michael Lloyd 

Source: Mortgage Introducer