Zoopla warns of slowdown as economic uncertainty impacts house price growth
Zoopla have published their house price index for August, revealing that house prices grew by 8.3% over the year – but that demand is beginning to weaken as mortgage rates rise.
Whilst overall demand remains 17% above the five-year average, it has fallen from a peak of +54% in May 2022 and is likely to continue to weaken over the rest of the year, with the property website forecasting that average house prices will rise by 5% in 2022.
There were also warnings that the cost of living squeeze has not yet had a full effect on the housing market, with homebuyers tending to earn higher incomes and therefore not yet feeling the pinch.
Zoopla also reported that first-time buyers currently account for 35% of all transactions.
Meanwhile the volume of builders’ merchant sales in the first six months of 2022 has fallen by 5.6% when compared to the same period in 2021, but sales were up 16.6% due to rising prices.
Analysis of June sales for the Builders Merchant Building Index (BMBI) also revealed that prices in the second quarter of 2022 were, on average, 17.3% higher than in Q2 2021.
The second quarter of this year has amplified some of the global difficulties, with the continued Russian invasion and spiraling cost of living issues at the forefront.
Unfortunately, no immediate end is in sight as most countries brace themselves for a recession.
JOHN NEWCOMB, CHIEF EXECUTIVE, BUILDERS MERCHANTS FEDERATION
Truss pledges to ditch nutrient neutrality rules
Prime Minister-hopeful Liz Truss has vowed to abolish nutrient neutrality rules if she becomes Tory leader in September, which could unlock the development of around 100,000 homes.
Under the rules, affected local authorities are unable to give planning permission to developments which could increase levels of phosphate and nitrates in watercourses.
Richard Beresford, Chief Executive of the National Federation of Builders, said that Truss was right to challenge “nutrient neutrality nonsense.”
The housebuiding industry has spent three years being blamed for pollution they didn’t cause…it should never have taken this long for this travesty of a decision to be appraised and we thank Ms Truss for giving it the attention it deserves.
RICHARD BERESFORD, CHIEF EXECUTIVE, NATIONAL FEDERATION OF BUILDERS
Bricklayers see highest wage rise in July
Self-employed bricklayers enjoyed the biggest increase in the size of their pay packets in July, with average weekly rates up 9.3% to £927, according to payroll firm Hudson Contract.
Across construction, labour rates for freelance trades rose 3.5% to £953 in July.
Meanwhile, in the Australian suburb of Wellard, a robot has completed the first clay block house for materials giant Wienerberger.
Named Hadrian X, the masonry robot is said to have laid bricks with “absolute perfection”, with Wienerberger also stating that “this forward-looking technology will revolutionise residential construction by making it faster, less expensive and more efficient, and guarantee a higher standard of quality.”
Cala opens new region, as CMA investigates more housebuilders
Cala Group has announced that it is expanding its former Midlands regional business into Wiltshire, the Vale of White Horse and Oxfordshire under the new brand of Cala Cotswolds.
The expansion will see it move its head office from Solihull to Oxford Technology Park, with plans to add 1,300 new homes to its pipeline over the next three years.
Meanwhile, the Competition and Markets Authority (CMA) is working with four more housebuilders to investigate controversial leasehold practices.
After revealing last week that they would not be investigating Barratt Developments any further, Crest Nicholson, Miller Homes, Redrow and Vistry have agreed to work with companies that purchased their freeholds to remove doubling terms from them.
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