A rise in housebuilding will provide “a much needed boost” to the property market, a leading expert has said.
New data shows house building in the UK has seen its sharpest rise in over two years following the removal of planning restrictions by Housing Secretary Angela Rayner.
In September, housing development surged, with the S&P Global Construction Purchasing Managers Index (PMI) rising to 54.3, up from 52.7 in August. This marks the fastest pace of growth since March 2022.
The construction sector as a whole also expanded significantly, driven by substantial growth in civil engineering projects, including energy infrastructure.
The overall construction PMI jumped from 53.6 in August to 57.2 in September, the strongest reading in nearly two and a half years.
This surge comes after Labour introduced a new draft National Planning Policy Framework (NPPF), designed to boost housebuilding targets for local authorities and unlock green belt land for development.
Additionally, falling mortgage rates have further supported demand for new homes following the Bank of England’s rate cut in September.
Commenting on the figures, Jonathan Rolande, the founder of House Buy Fast, and lead spokesman for the National Association of Property Buyers, said: “There aren’t many economic reports that are only good news with no downside. Rising house prices may be good for sellers, but it’s bad for buyers. Falling interest rates are good for buyers but bad for savers.
“But some news this week is only good news for everyone – with the possible exception of a tiny group of Nimbys. House building is growing at pace. This will provide a much needed boost to the market at just the right moment.
“Not only are there more homes to buy, but there will also be more work within the construction industry and more positivity in the property market and the economy in general, something that has been in short supply since the election.
“Building homes is a long-term exercise and this is a strong indication that housebuilders whose very existence depends upon calling the market well ahead of time, see stability and indeed growth in the property market for at least a year or so ahead. If we see further cuts in interest rates and a better supply of homes for sale, we can look forward to a much more balanced housing market that gives more people the opportunity to own their own home in 2025.