Investor confidence remains low due to a lack of clarity around Brexit which is causing a negative effect on the UK housebuilding sector, according to the chief executive of the British Property Federation.
Melanie Leech said that the latest construction statistics showed the sector is currently witnessing some “short-term turbulence”, which was connected to a feeling of economic uncertainty.
“The key policy issue for this part of the market is clearly Brexit and the impact that is having on investor confidence and our customers,” Ms Leech said. “Confidence is everything in this part of the market.”
Speaking at the MIPIM conference in London last week, which LGC was told hosted a diminished number of attendees this year, Ms Leech said there would be a “healthy future ahead” in the long-term.
Ms Leech said that the sector had witnessed a “good year by recent standards” for 2017-18 as housing completions reached almost two-thirds of the government’s target of 300,000.
The biggest growth (8.7%) came in the build-to-rent sector. Mr Leech said this was a good sign as Britain is a “nation of renters” and build-to-rent was “bringing new long-term investors into housing and also a new offer for renters in the UK.”