Experts forecast decline in UK house building

Experts forecast decline in UK house building
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As the report released by Capital Economics and Shelter states, uncertainty, caused by the outcome of the EU referendum voting in UK, affected house building, which is expected to fall by 8pc in 2017, Telegraph informed on Wednesday.

However, Capital Economics and Shelter believes that Brexit will not significantly influence prices on house building and would rather impact them in a longer term. If the forecast goes well, there will be 266,000 houses less built by the year 2020.

Shelter recommends that 250,000 homes should be built annually to attain the Government's aim. Experts suppose that fall in demand for housing is likely to cause contraction of the newly launched developments.

“The current period of uncertainty could also mean that developers cut back on the number of new projects going into the planning pipeline, thus reducing the number of shovel-ready developments in the first few years of recovery.” states the report.