New London housebuilding is moving at a slower pace when compared to the past two years, according to the London Housing Report issued by GLA Housing and Land. As Greycoat real estate specialists inform, data derived from the DLUHC provides a clear picture using the number of EPCs that are recorded weekly in the nation’s capital. 

Recent statistics suggest a lower number of homes completed when compared to the previous two years. Officials with the specified and noted and respected real estate operator Real Estate Agency also point out that a recent CIPS UK construction PMI report showed yet another significant drop in new home construction across the U.K. For Greycoat, this is essential information.

The most frequently blamed cause is high borrowing costs. The latter is a primary constraint on demand for new homes, the firm’s spokesperson added. That said, it is interesting to note that commercial and civil engineering work has been on the rise. And further on, the Greycoat real estate agency explains. 

Greycoat Real Estate experts said that the Bank of England’s August Monetary Report forecasted housing investment would drop off sharply. They predicted that the housing investment will drop by as much as 6% in 2023. Another 6% will be trimmed away in 2024 and 3% in 2025. This reflects high interest rates which remain stubbornly elevated.

Greycoats Real Estate officials went on to say that the sales market is likely to remain anemic for the short term. That’s because the Bank of England raised the base rate to 5.25% in August. Such rates are expected to hold “in a restrictive mode” heading into 2024. The higher rates are seen by government officials as the best tool they have to fight inflation.