UK New-Build Housing Market Hits Lowest Level Since 2017

Property platform Rightmove reported that the number of new-build housing developments entering the UK market in May reached its lowest level since January 2017. Although the total volume of properties for sale has risen by 85% over the past four years, the platform warns of a persistent shortage of affordable housing. This data suggests the Government of the United Kingdom is not on track to meet its goal of constructing 1.5 million homes during the current parliament.

Economic pressures are further evidenced by the S&P Global UK construction PMI, which shows the fastest drop in construction activity since the Covid-19 pandemic. This decline is attributed to project delays and wider economic instability.

In response to these trends, Rightmove has called for the removal of stamp duty for first-time buyers. Similarly, the UK's largest housebuilder, Barratt Redrow, is seeking targeted support for first-time buyers to mitigate the impact of rising borrowing costs and increasing regulatory expenses.