He warned that the government’s approach had compounded the slowdown. “The government’s lack of a coordinated growth plan hasn’t helped confidence in the broader economy,” he said. “The Bank of England has kept rates high longer than expected to control inflation, making mortgages expensive and reducing buyer demand. Government indecision and economic drift are key contributors to the slow housing market.”
Others in the industry share his concern that policy drift is undermining both demand and supply.
Supply-side strain adds to pressure
Hemat Natha, director of Mortgage Advice Point, said the same lack of strategy was stifling construction and development. “They talk about cutting red tape and big infrastructure announcements, but have they cut any red tape out of planning? How are they incentivising developers to build or convert?” he asked.
He added that persistent labour shortages were worsening the challenge. “How are we going to build the homes with increased labour costs?” he said. “They’re making it difficult for the workers the country needs.”
Natha described a market stuck in neutral. “I haven’t seen any strategies communicated, and is there a strategy, really? The country’s at a standstill at the moment. Businesses are at a standstill,” he said.