The state of the UK housing market

The state of the UK housing market
May 20, 2016 Rosie Williams
uk housing market

Michael O’Callaghan is on the Mirox Board of Directors and is a Senior Director of Kier Construction plc. He has worked in construction and engineering businesses for over 25 years, developing capability and delivery systems that drive market leading growth and profit. Michael is currently a senior director at Kier, having previously worked at Morgan Sindall.

We spoke with Michael to catch up on his opinions about the state of the housing market in the UK at present and in the near future. This is what he had to say:

“In the year to April, house prices in the East of England have risen by an average of 11%, with the South East a close second, at an average price growth of 9.5%. While London growth slowed somewhat to slightly less than 9%, house building still remains a priority in the capital and southeast of the U.K.

In spite of more than 156,000 new homes registered to be built in 2015 (the highest number since 2007) we are still falling considerably short of the Government’s target and national requirement of 200,000 new homes per year coming to the market.

Over the next few weeks, the country will consider the implications of ‘Brexit’, and parties on both sides of the argument will debate potential results and outcomes.

Whatever the result, given the above statistics, chronic underinvestment in housing over past years, reluctance to build on greenfield sites and continual inability to meet and exceed Government targets, we may expect house prices to continue on an upward trend for some time to come. We might also expect, in line with the priorities of the recently elected London Major Sadiq Khan, that house building will remain a top priority for local councils and government officials across the country, but most especially in the South East, where demand is highest.”