Private Housing

摘要

2008 sees the UK housing market encountering its most difficult situation in 15 years. The double-digit growth seen during 2003 and 2004 is very different to the current outlook as a result of the 'credit crunch'. Despite a shortage of housing in Greater London and the South East, housing market conditions are expected to remain subdued with a contraction in the private house building sector for two years. The economic slowdown is likely to influence both supply and demand to the detriment of sector output by reducing the stability within labour markets necessary for consumers to make large investments in property. On the supply side, the slowdown has impacted heavily on the financial services sector. This has reduced the availability of credit and increased the cost of credit. Housing starts and completions fell dramatically during the first quarter of 2008.The economic slowdown is sharper than was expected in December, with the major macroeconomic forecasters revising down forecasts of economic activity. As a result, output is forecast to fall significantly over the course of 2008 and 2009 with a recovery during 2010 and 2011 alongside that of the economy as a whole.