Increased optimism for Developers

The light at the end of the tunnel is starting to shine as Housebuilders charge on despite the ongoing rise in materials costs, labour and interest rates.

As the demand for homes will always be there, whatever the state of the economy developers will always continue to push on to provide the nation with much needed housing.

However, with COVID causing a delay in building during 2020 and the constant rise in inflation ever since, construction has slowed down and last year only met 70% of the governments target of 300,000 new homes.

There have been estimates for this year implying the industry would be lucky to meet half of the target. Although it is clear that every part of the industry has been affected somehow and this is most evident to SME builders, especially in terms of planning.

With that being said, we have seen a number of the bigger players showing great optimism as share prices rise for both the housebuilders and merchants.

Bloor Homes said: “Recent increases in the Bank of England base rate, and subsequent increases in mortgage loan rates, have made the landscape more challenging, but the company remains optimistic and well-placed to navigate the situation.”