The number of new houses entering the market this year increased by 8.7 per cent in the UK, according to the latest quarterly report (July-Sept 2016) released by the Office of National Statistics.
Though there was no significant improvement in the total number of new houses during the third quarter when compared to the second quarter, on account of Brexit, on the year, there was an 8.7 per cent increase. Incidentally, private new housing increased by 10.8 per cent during the same period. In fact, this is the 14th period of consecutive year-on-year growth for the private housing sector.
The report is clear about the contribution of the private housing sector – “Due to the much larger weight of private new housing, which accounts for approximately 87% of the total (based on Quarter 3 2016 data) the increase in public new housing could not negate the fall in private new housing.”
The recent developments in the market indicate that the housing sector in the UK is gradually recovering after a mid-year slump following the UK’s referendum to quit the EU. The house sales are picking pace but the number of new built homes entering the market is poor. This is further adding to the housing crisis in the UK.
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On the year, total housing increased by 8.7% with private new housing increasing by 10.8%, the fourteenth period of consecutive year-on-year growth