UK Sees Rise In New Housing Despite Fall In Overall Construction Output

New housing experienced solid growth in March, up 3.8% on the month, despite a 0.7% drop in wider UK construction output, the latest figures from the Office for National Statistics (ONS) show. In spite of the wider slowdown in the construction sector in March, which was the third consecutive period of negative month-on-month growth, residential property building levels rose by 5.4% on the year and 0.2% on the quarter. The ONS said repair and maintenance was the main drag on construction output, shrinking both month-on-month and quarter-on-quarter by 1.8% and 0.2%, respectively. Read more on the ONS website.

House Prices Fall Month-On-Month

Annual house price growth in the UK softened to 3.5% in March with prices falling 0.3% month-on-month, according to the latest Nationwide House Price Index. The reversal in momentum has been described as a “wake up call” by Jonathan Hopper, managing director of Garrington Property Finders. “It’s nearly two years since the month-on-month number was last in negative territory. But now, as then, the surprise fall in house prices was symptomatic of a listless market rather than a profound shift,” he said. “So it would be overly melodramatic to view the Nationwide’s latest data as a turning point. In reality, average house prices have been meandering for several months against the volatile and uncertain economic backdrop. Read more on Housing Excellence.