Unbuilding Dreams: Britain's Housing Goals and Market Predictions
The British government's goal to build 1.5 million homes by 2029 is unlikely to be met, with forecasts indicating only one million might be achieved. Rising home prices and urban rents, juxtaposed with falling borrowing costs, suggest improvement in mortgage affordability for first-time buyers by 2025.
The housing outlook in Britain remains unchanged over recent months, with experts predicting limited success in meeting government construction targets. Despite intentions to build 1.5 million homes by the end of 2029, analysts forecast the completion of just a million homes, a significant shortfall from Prime Minister Keir Starmer's promises.
Real estate agency eMoov's Russell Quirk describes the 1.5 million target as 'a fantasy,' citing capacity and financial incentives as barriers for top builders. Urban home prices, expected to rise due to low supply, could see affordability improve for first-time buyers thanks to decreasing mortgage costs amid Bank of England rate cuts.
However, urban rents are predicted to increase pace, climbing 4.3% nationwide and 3.7% in London this year. The mounting cost of urban living, combined with legislative changes for landlords, may prompt a market shift as some opt out of the rental sector entirely.
(With inputs from agencies.)
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