The worst is over for housebuilding market
(12/08/2009)

According to a new report produced by HobsonFord Associates and Barbour ABI, demand and affordability are two significant influences over the housebuilding market’s past, present and future. The housebuilding industry are set to see a complete reversal of the current market situation within the next five years.

As the demand for homes remains strong, other signs attributed to a turn in fortune for the housing sector include; mortgage lending improvements, increased enquiries for builders and increased buyer demand for Estate Agents. Activity levels are still well below pre-credit crunch levels but have been improving month on month recently.

Affordability remains a key issue despite house prices having fallen by some 20% from their peak in 2007. However, reductions in building capacity and housing stock have gone someway to halt their decline and, if the increase reported in May by the Nationwide Building Society is sustained, could well have bottomed out. Even so, the ability to buy a house is still out of the reach of many.

The report, entitled Market Insights, has revealed that the worst is over as financial constraints within the troubled sector are starting to ease. This 42 page report encompasses an in-depth analysis of the private and social new build markets accompanied by key construction contacts and project data.

The report goes on to say that there is a compelling need for social and affordable housing. This is confirmed by Local Authority waiting lists doubling over the last 10 years to a level not seen for over 30 years.

Market Insights provides an in-depth review of the UK Housing Market and future prospects.

David Andrew, Director at Barbour ABI says: “HobsonFord are well-known for their comprehensive independent market intelligence and accurate trend forecasts and we are delighted to be working with them.”

Glen Ford of HobsonFord Associates explains: “The recession almost paralysed the industry at the end of 2008 but it has not affected the fundamental factors that influence demand. The report forecasts future activity over the coming months and years and summarises key opportunities and issues for senior executives.”

A full copy of Market Insights report can be purchased online at Barbour ABI's website.