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
Indian Kashmir police: Five people were killed in the Indian Jammu region in attacks launched by Pakistan this morning.
Pakistani media: Pakistani spy planes arrive in New Delhi.
United States of America: US State Department: Secretary Rubio offered America's assistance in initiating constructive talks aimed at avoiding future conflicts.
United States: US State Department: Rubio continued to urge Pakistan and India to find ways to de-escalate tensions.
United States of America: US State Department: Secretary Marco Rubio spoke with the Pakistani Army Chief of Staff today.
Pakistan Army: Prime Minister Shehbaz Sharif convenes National Command Authority meeting.
Powerful explosions in several India-administered Kashmir areas: AP
Al Mayadeen's correspondent in Pakistan citing Pakistani sources: The Pakistani army targeted more than 20 Indian military sites.
Indian air operations are currently underway in Pakistan: Reuters citing an Indian military source.
Pakistani Army announces targeting of Pathankot and Udhampur airbases in India.

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

Pro-Palestinian protesters march toward the US Immigration and Customs Enforcement (ICE) headquarters, Saturday, April 5, 2025, in Washington (AP)

US House to vote on bill criminalizing boycott of 'Israel'

  • Politics
  • 3 May 2025
Throughout Operation Prosperity Guardian, current and former US military and intelligence officials expressed disquiet at the enormous “cost offset” involved in battling Ansar Allah. (Al Mayadeen English; Illustrated by Zeinab El-Hajj)

Ansar Allah triumphant: US facing Red Sea defeat again

  • Opinion
  • 3 May 2025
Trump cut off contact with Netanyahu, senior Israeli official says

Trump cut off contact with Netanyahu: Israeli media

  • US & Canada
  • 9 May 2025
Pakistan downs an Indian jet and hits a military base in Kashmir escalation.

Pakistan downs 3 Indian jets, hits military base in Kashmir escalation

  • Politics
  • 7 May 2025

Coverage

All
Gaza prevails against genocide

Read Next

All
Bodies of some of the victims of an Israeli army strike on a restaurant, which killed at least 29 people, are transported from the scene to a hospital in Gaza City, May 7, 2025.(AP)
Politics

Israeli strikes massacre multiple families in Gaza, including infants

US Special Envoy Steve Witkoff, listening to French President Emmanuel Macron prior to a meeting at the Elysee Palace in Paris, Thursday, April 17, 2025. (Ludovic Marin, Pool Photo via AP)
Politics

Witkoff says JCPOA deal off the table, but broader Iran talks possible

screengrab
Politics

28th YAF ballistic missile sparks panic, mass sirens across Palestine

Newly elected Pope Leo XIV concelebrates Mass with the College of Cardinals inside the Sistine Chapel at the Vatican the day after his election as 267th pontiff of the Roman Catholic Church, Friday, May 9, 2025 (AP)
Politics

New pope criticized JD Vance and Trump before becoming Pope

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