Britons told of the 'much-needed' property market update that's 'good news for everyone'
The rise in house buildings has been billed as "good news for everyone"
GETTY
The UK housing market is experiencing a significant boost as recent data reveals a sharp rise in housebuilding activity.
This surge comes in the wake of Labour's removal of planning restrictions and the introduction of new policies aimed at increasing housing development.
The construction sector, particularly in residential projects, has seen its most rapid growth in over two years, marking a turning point for the property market. This uptick is further supported by falling mortgage rates, fuelling demand for new homes across the country.
The S&P Global Construction Purchasing Managers Index (PMI) for housing development rose to 54.3 in September, up from 52.7 in August. This marks the fastest pace of growth since March 2022 and an expert has called this great news for buyers and sellers.
The update is good news for both buyers and sellers
GETTYThe surge follows Housing Secretary Angela Rayner's removal of planning restrictions, which has significantly impacted the sector.
This growth extends beyond residential construction, with civil engineering projects seeing substantial expansion. Energy infrastructure developments have played a key role in driving this sector forward.
The surge in construction activity aligns with Labour's introduction of a new draft National Planning Policy Framework (NPPF). This policy aims to boost housebuilding targets for local authorities and unlock green belt land for development.
Additionally, the Bank of England's rate cut in September has led to falling mortgage rates, further supporting demand for new homes.
The surge in housebuilding and broader construction activity is expected to provide a much-needed boost to the property market. As a leading expert noted, this rise in development comes at a crucial time for the UK housing sector.
The founder of House Buy Fast and lead spokesman for the National Association of Property Buyers Jonathan Rolande said: “There aren’t many economic reports that are only good news with no downside. Rising house prices may be good for sellers, but it's bad for buyers. Falling interest rates are good for buyers but bad for savers.
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PA“But some news this week is only good news for everyone – with the possible exception of a tiny group of Nimbys. House building is growing at pace. This will provide a much-needed boost to the market at just the right moment.
“Not only are there more homes to buy, but there will also be more work within the construction industry and more positivity in the property market and the economy in general, something that has been in short supply since the election.
“Building homes is a long-term exercise and this is a strong indication that housebuilders whose very existence depends upon calling the market well ahead of time, see stability and indeed growth in the property market for at least a year or so ahead.
"If we see further cuts in interest rates and a better supply of homes for sale, we can look forward to a much more balanced housing market that gives more people the opportunity to own their own home in 2025."