Following recent weeks of government changes and the outcome of the European Union vote to leave, it has been the housing market that is currently at its most volatile. Due to unforeseen circumstances and the uncertainty of our country’s future, the likes of house building firms Taylor Wimpey, Barratt Homes, Permission and Berkley Group Holdings saw a slump in the markets by as much as 6% immediately after the referendum result.
And that’s not all! A recent article by BBC News has claimed that new buyer enquiries have fallen to the lowest level since 2008 whilst house prices are also set to fall across the UK with London & East Anglia suffering the greatest shift.
As consumers become more cautious on making big purchase decisions and guard themselves and their businesses against the economic issues currently facing us, there is a level of negative trust in investor confidence which most definitely will have an impact on construction companies. House building firm Barratt homes has already confirmed in a recent article the Guardian newspaper, “Barratt says it could slow house building rate following Brexit vote”, that it is preparing itself for a possible slowdown in the rate in which it is building new homes following the vote to leave result.
Steps to improve house building and the market’s future
In light of the decision, business representatives and unions have now requested that the government steps in to bolster the economy to put some certainty back into the house building market.
This comes as a real blow to the construction industry having been promised earlier government funding to meet new house building targets under the government’s New Home’s and Help To Buy schemes.
If you are a house builder, tradesman or run a construction team and looking to refine your construction insurance policies, then here at Crendon Insurance we can help. With over 10 years experience in supporting insurance liability within the Construction industry, we help large and small businesses by offering a broad range of construction policies which will suit your business needs.
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