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
Palestinian media: Reports of stabbing operation in occupied al-Quds.
Israeli media: Sirens blare in Arava in South, near Ramon Airport.
Egyptian PM Mostafa Madbouli: Egypt is targeted in plans to redraw regional map
AEOI Chief Mohammad Eslami: Our presence in IAEA General Council and fact-checking helped in preventing unilateral rhetoric that aims to portray Iran as an unregulated country
AEOI Chief Mohammad Eslami: We witnessed new, stricter stances from European countries since signing new agreement with IAEA
Saree: Our UAV force targeted the so-called Ramon Airport in the Umm al-Rashrash area in southern occupied Palestine
YAF spokesperson Brigadier General Yahya Saree: Our rocket force carried out an operation with a Palestine 2 hypersonic ballistic missile targeting a sensitive target in the occupied Yafa area
Trump administration clears first Ukraine arms aid package paid for by allies: Reuters, citing sources
Saudi Crown Prince Mohammad bin Salman receives Secretary of Iran's Supreme National Security Council Ali Larijani at his office in Al-Yamamah Palace
Wakim: Surrender is not in our dictionary, and it is not true that "Israel" can implement its project in Lebanon and the region

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-"Israel" conservative Charlie Kirk shot during Utah speech

American far-right activist Charlie Kirk shot dead during Utah speech

  • US & Canada
  • 11 Sep 2025
Uprising against Volker Turk at the Human Rights Council over Gaza.

Uprising against Volker Turk at the Human Rights Council over Gaza

  • Politics
  • 12 Sep 2025
A screengrab from the ad played on Fox News. (X Screengrab)

Fox airs ad warning Trump not to let Netanyahu 'play' him on Gaza

  • US & Canada
  • 11 Sep 2025
Lapid: Egypt’s Arab Force plan a 'severe blow' to normalization

Lapid: Egypt’s Arab Force plan a 'severe blow' to normalization

  • Palestine
  • 14 Sep 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
Britain Trained Israeli Soldiers Involved in Gaza War: Declassified
Europe

UK training of Israeli officers sparks outcry over Gaza war complicity

Luxembourg's Prime Minister Luc Frieden arrives for an EU summit at the European Council building in Brussels, Thursday, June 26, 2025. (AP Photo/Omar Havana)
Politics

Luxembourg to recognize Palestine at UN summit next week

European Union flags flap in the wind outside EU headquarters in Brussels, Wednesday, Sept. 3, 2025 (AP)
Politics

EU exec. branch to adopt new sanctions against 'Israel' on Wednesday

Charlie Kirk killing suspect faces charges in Utah court hearing
US & Canada

Charlie Kirk murder suspect faces formal charges in Utah court hearing

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