Buyer demand worst for six years

Demand for new build homes has reached its lowest level since 2013, according to a survey of small and medium-sized housebuilders by the Federation of Master Builders (FMB).

The annual survey, which asks local housebuilders to rate buyer demand out of five, produced an index score of 2.9, down from 3.14, the lowest level since the end of the global financial crisis. Housebuilders also said they expected demand to worsen next year, given Brexit-related uncertainty in the market.

Brian Berry, chief executive of the FMB, said: “Small house builders are starting to see the effects of Brexit uncertainty taking its toll on consumer confidence. Many prospective homeowners are clearly holding off buying until there is more political and economic certainty.”

However, the drop off in demand also saw the number of builders suffering from a lack of available land, planning system problems and a shortage of skilled workers dropping significantly from last year.

Two-thirds of respondents to the survey are from firms building fewer than 10 homes a year.

The figures come a day after the Halifax reported annual house price growth in September of 1.1%, its lowest for six years. Prices fell month on month by 0.4%, the Halifax said.