Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Afghan source to Al Mayadeen: We still believe in dialogue and prioritize diplomatic solutions with Pakistan; though we are ready for all possibilities.
Afghan source to Al Mayadeen: Pakistan purposely obstructed negotiations in Turkey by making unrealistic demands.
Al Mayadeen's correspondent: More than 70 martyrs in Israeli attacks on Gaza since dawn.
Death toll from latest Israeli strikes on Gaza rises to 30
Al Mayadeen's correspondent: Five killed in the Israeli bombing of a civilian vehicle on Al-Qassam Street in Khan Younis, south of the Gaza Strip
Hamas confirms that it has no connection to the shooting incident in Rafah and affirms its commitment to the ceasefire agreement
Al Mayadeen's correspondent: Two civilians were killed and four others, including a child and an infant, were injured in an Israeli bombing of a house belonging to the Al-Banna family in the al-Sabra neighborhood, south of Gaza City
Al Mayadeen's correspondent: An Israeli airstrike targets the vicinity of Al-Shifa Medical Complex, west of Gaza City
Al-Qassam: We will postpone the handover of the body of the Israeli captive we found, which was scheduled for today, due to the occupation's violations
Al Mayadeen's correspondent in Gaza: Israeli occupation aircraft launch airstrikes on the city of Rafah in the southern Gaza Strip

UK homebuilders cut back on constructions over fear of mortgage rise

  • By Al Mayadeen English
  • Source: Agencies
  • 6 Jun 2023 17:53
3 Min Read

The construction sector purchasing managers’ index indicates housebuilding activity in May at 42.7,  down from 43.0 the month prior - a below-50 reading means that output is minimizing rather than expanding.

  • x
  • The Bank of England's quarterly report is aggregated from data on mortgage lending activities provided by around 340 lenders (AFP)
    Real estate and rental agents’ boards on a residential street in Hackney, east London, UK, on August 9, 2019 (AFP)

The construction of new homes is being cut back in the UK amid indications that buyers fear a spike in mortgage rates over the next few months. 

According to a construction report, residential building site work plunged to its lowest last month since 2009. However, commercial building and civil engineering sectors, surveyed monthly by S&P and the Chartered Institute of Procurement and Supply (CIPS), demonstrated expansion.

Official interest rates have been raised 12 times in the past 18 months by the Bank of England as inflation continues to soar. 

Chief economist at the CIPS, John Glen, said, “Though overall output in the construction sector showed an improvement for the fourth month in a row, the steepest drop in housebuilding activity since April 2009, barring the initial pandemic lockdown in early 2020, will send a chill down the spine of the UK economy.”

The construction sector purchasing managers’ index indicated housebuilding activity in May at 42.7,  down from 43.0 the month prior - a below-50 reading means that output is minimizing rather than expanding.

Related News

Israeli economy, tech sector sustain massive fallouts amid war on Gaza

Commercial building construction was recorded as the strongest-performing subsector, registering at 54.2, while civil engineering recorded an 11-month high of 53.9.

Read next: House prices fall similar to the UK's 2008 crisis

This comes after a report by Resolution Foundation stated that around 1.6 million British households will face a £2,300 increase in mortgage payments after interest rates surged amid a current housing crisis

Despite the cutback, new order books for the sector were recorded at a high in more than a year, and price pressures and supply-chain restrictions eased.

“The residential subsector is closely linked to consumer confidence and levels of spending,” Glen stated, adding, “A further hike in interest rates is expected this month, and along with the relentless increase in the cost of living is making buyers hesitate about purchasing homes."

“As a result, builder confidence was pinched to remain below the survey average, as business costs remained high and firms expanded their workforce numbers at only a modest pace as they were cautious about their own affordability rates.”

Rents in London have increased by 9.1% since last year, driving the exodus. Due to high mortgage rates, some landlords have sold their properties, leaving tenants competing for a smaller pool of available homes, while other landlords are putting up prices that reflect the increase in mortgage costs. 

  • construction
  • building
  • UK
  • London
  • mortgage
  • houses

Most Read

'Israel’s Digital Iron Dome: Weaponizing the web against Palestine

'Israel’s Digital Iron Dome: Weaponizing the web against Palestine

  • Technology
  • 24 Oct 2025
Arab League chief exposes secret US deal shielding 'Israel’s' nukes

Arab League chief exposes secret US deal shielding 'Israel’s' nukes

  • Politics
  • 27 Oct 2025
Abu Hamza, the spokesperson for the Al-Quds Brigades, during a speech televised on October 22, 2025 (Al-Quds Brigades Military Media)

Al-Quds Brigades' Abu Hamza mourns leaders, vows continued resistance

  • Politics
  • 22 Oct 2025
US missionary kidnapped in Niger capital, suspected taken toward Mali

US missionary kidnapped in Niger capital, suspected taken toward Mali

  • Africa
  • 23 Oct 2025

Coverage

All
War on Gaza

Read Next

All
Saudi's PIF refocuses on AI, logistics, and religious tourism
Economy

Saudi Arabia's fund refocuses on AI, logistics, and religious tourism

Detained Bahraini activist al-Khawaja starts new hunger strike.
Politics

Detained Bahraini activist al-Khawaja starts new hunger strike

Israel fortifies Gaza’s "yellow line," prepares to dig in.
Politics

'Israel' fortifies Gaza’s 'yellow line,' prepares to dig in: WSJ

President Donald Trump speaks to reporters aboard Air Force One as he travels from Tokyo, Japan, to South Korea, on October 29, 2025. (AP Photo/Mark Schiefelbein)
Asia

Trump’s weak dollar strategy risks global fallout: Forbes

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS