The UK real estate crisis is unlikely to improve in the near future as official figures show today that developers have reduced the rate at which they build new homes before Brexit.
According to government figures, just over 2,100,000 new homes were delivered in the 2017/18 fiscal year, up 2 percent over the previous year and well below the government's target of 300,000.
In the meantime, the growth rate in residential construction has halved from 11.9 percent (2016/17) to 6.4 percent (2017/18).
Theresa May has promised her government "to repair our broken real estate market"
In its annual Housing Supply Update in England, the Ministry of Housing, Local Government and Local Government confirmed 195,290 new homes by March 2018.
There were also 29,720 profits from changes in use between non-residential and residential properties and 4,550 conversions between homes and apartments.
James Brokenshire, the ward's secretary, welcomed the numbers and said that "urgently needed homes should be delivered – a crucial step to make sure the housing market works for everyone".
He added that the government is "on track to deliver 300,000 homes by the mid-2020s".
But experts were critical. Mark Dyason of mortgage broker Thistle Finance said: "The number of newly built homes has been highest for a decade, but has risen only 2 percent since last year, highlighting the pace of glaciers in building homes.
"Brexit uncertainty is likely to be a factor in the almost negligible growth in the number of new homes since last year.
"House builders and buyers alike would be nervous about what the consequences of Brexit could be, and that hit the number of additional net homes hard."
Grainne Gilmore, Head of UK Housing Research at Knight Frank, said it was warned that other data already indicated a further slowdown in the completion of residential buildings.
"Net additions are still 26 percent below the government's annual target of 300,000, while separate data on the start of housing construction, which covers information on new homes, is being launched locally, she said.
Grainne Gilmore, Head of UK Housing Research at Knight Frank, said it was warned that other data already indicated a further slowdown in housing completion
Meanwhile, a trade statement by Bovis Homes was published in the morning, blaming "Brexit uncertainty" for a decline in buyer interest.
It states: "Our sales per outlet per week for the current year is 0.51, with prices in line with our expectations. While maintaining our sales quota, Brexit uncertainty has influenced buyers of discretions. "
Taylor Wimpey also said that Brexit uncertainty will lead to flat sales growth next year, but indicated that there is potential for "significant growth" after 2020.
It is in a series of data that points to a bleak outlook for the UK real estate market.
Earlier this week UK Finance, UK bankers' representative, confirmed that mortgage lending had declined a year ago in September, when people were sitting in their hands to see what happened to Brexit.
The number of first-time buyers has fallen by 4.5 percent since September 2017, households fell by 8.4 percent over the same period and homeowners dropped 18.8 percent.
Decline: The sale of London homes has steadily declined over the year
The same day, real estate broker Foxtons confirmed that he closed six branches in London during the summer, recorded a loss in the first half of the year, and said that fewer domestic transactions would have resulted in lower sales revenues in the three months ending 2003 than in the previous year lay September.
Yesterday, the National Statistics Office confirmed that the average cost of a home in London fell 0.3 percent last year to 482,000 pounds.
Gilmore said today's London construction figures are "a headache for policymakers," with the net number of new housing in the capital falling 20 percent over the year.
"Only 12 of the 33 districts in the capital reported an increase in the number of newly provided apartments in March," she said.
"The Energy Efficiency Certificate data indicates that there has been activity since March, but overall data shows that current planning strategies have dampened development as housing demand in London increases."
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