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UK demand for new houses outstrips supply despite economic outlook

Demand for new homes continues to exceed supply despite growing concerns about the UK economy, raising the likelihood that the housing market will cool down and not collapse.

Crest Nicholson and Bellevue, two of the country’s biggest home builders, were optimistic about their chances on Tuesday, with the former upgrading its full-year revenue forecasts and the latter announcing it was selling homes at a faster pace than the previous year.

This comes despite rising interest rates, inflation and an unexpected contraction in the economy, which have raised expectations of a slowdown in the economy. Housing market And perhaps a sharp drop in sales.

“The message to date is that trading has not really gone down,” said Chris Millington, an analyst at Numis. “Sales rates are really strong compared to Promote Cubid; order books are in a place we’ve never seen before.”

According to him, the chronic sub-supply of new homes in the country is the main factor that ensures that demand remains sustainable.

“Necessarily [the market] Going to moderate; You can not see that this does not happen with rising rates and economic uncertainty. But it makes it look like a moderation rather than a crash, “he said.

symbol Shares rose nearly 6 per cent at the start of trading in London, cutting their surfing during the year to around 28 per cent. Blewi Shares climbed 2.3%. They dropped by 32% in 2022.

UK demand for new houses outstrips supply despite economic outlook Source link UK demand for new houses outstrips supply despite economic outlook

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