Reaction to Nationwide House Price Index

Reaction to Nationwide House Price Index

Gateley Vinden says decisive policy needed to end construction projects' hesitancy.

The latest Nationwide House Price Index has been released and reveals that house price growth softened in September.

House prices rose by 0.3% on August’s figures and  are up 5.3% on the same period in 2015.

The building society said that house prices still “remained within the narrow range of 3% to 6% that has prevailed since early 2015.”

The number of homes on the market remains close to record low levels with the number of new buyer enquiries also remaining flat.

The lack of new housing being built was cited as a contributing factor to this but encouragingly the number of new homes being built increased slightly. However, the number was still way below the numbers needed to satisfy demand.

The report suggested that economic uncertainty could be preventing some house builders from increasing their output despite having the capacity to do so at the current rate for the next five years.

Speaking to Matt Brown from UK Construction Online, Peter Vinden, Managing Director of Gateley Vinden – a leading multi-disciplinary consultant company to the built environment said: “This is a perfect example of why we need a defined Brexit policy from the government.

“This report highlights housebuilders having the capacity to build more houses but holding back because of economic certainty. This hesitancy will have a knock on effect across the entire industry.

“This week we have heard about ‘soft’ and ‘hard’ Brexit. What we need is a ‘defined’ Brexit. This country can thrive outside of the EU and it isn’t something we should be fearful of. The economic Armageddon threatened by many in the run up to referendum has failed to materialise. The government should be embracing this opportunity with a sense of optimism and get on with securing the best deals for Britain.”