“Thriving communities also need investment in jobs, education, healthcare, transport and policing, alongside robust supply chains, a skilled workforce and a stable economy to keep housing accessible for both buyers and renters equally.”
According to Nicholas Mendes (pictured right), mortgage technical manager at London broker John Charcol, the slowdown would be felt most acutely at the affordable end of the market.
“A slowdown in new developments coming to market is unwelcome news for first-time buyers, but the impact is more nuanced than a straightforward jump in prices,” he said. “The affordable end of the market is where a fall in new developments really bites; new builds are typically a key source of homes aimed squarely at first-time buyers, often with developer incentives and shared ownership options attached, so developers building fewer of them shrinks that pipeline directly.
“Over time, that concentrates first-time buyer demand onto a smaller pool of suitable existing properties at the more affordable end of the market, and that’s where any upward pressure on prices would build if the shortfall persisted. The market can absorb a temporary dip, but a sustained fall in new development risks locking another generation into renting for longer.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
