Monday 5 September 2016

Government 'To Miss 1m Homes Target'

The government is set to miss its one million homes target as a result of market uncertainty following the Brexit vote, a consultancy has forecast. A report produced by research consultancy Capital Economics for homelessness charity Shelter estimates a 266,000 shortfall in housing starts by 2020, due to uncertainty over the vote to leave the European Union. The report projects that the number of homes expected to be built in 2017 will fall from 164,000 to 140,000 as market confidence drops – a reduction of 14.6%. In 2018, 151,000 homes are expected to be built, instead of 176,000 as previously expected. The report uses data for house prices and housing starts and makes forecasts for changes in gross domestic product following the Brexit vote. Download the report from Capital Economics website.

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