{"id":203661,"date":"2025-11-27T21:23:08","date_gmt":"2025-11-27T21:23:08","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/203661\/"},"modified":"2025-11-27T21:23:08","modified_gmt":"2025-11-27T21:23:08","slug":"uk-housing-demand-seen-recovering-on-clearer-post-budget-outlook","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/203661\/","title":{"rendered":"UK housing demand seen recovering on clearer post-budget outlook"},"content":{"rendered":"<ul data-testid=\"Summary\" class=\"summary-module__summary__QjADA\">\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Budget clarity seen removing key obstacle for buyers<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Analysts see pent-up demand lifting spring sales<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">HBF warns UK housing goals at risk unless affordability pressures addressed<\/li>\n<\/ul>\n<p>Nov 27 (Reuters) &#8211; Demand for new homes could gradually recover next year, giving British homebuilders a much-needed boost, analysts and some investors said after finance minister Rachel <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/business\/finance\/uks-reeves-test-faith-investors-party-with-tax-heavy-budget-2025-11-25\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">Reeves&#8217; budget<\/a> cleared uncertainty that held buyers back.Shares of homebuilders, such as Berkeley <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/companies\/BKGH.L\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(BKGH.L), opens new tab<\/a>, Barratt Redrow <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/companies\/BTRW.L\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(BTRW.L), opens new tab<\/a> and Persimmon <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/companies\/PSN.L\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(PSN.L), opens new tab<\/a> were about 1% to 3% higher on Thursday, having fallen on Wednesday after the budget which increased taxes on pensions and savers.<\/p>\n<p data-testid=\"promo-box\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf article-body-module__promo-box__hVl8h\"> Sign up  <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/uk\/uk-housing-demand-seen-recovering-clearer-post-budget-outlook-2025-11-27\/undefined?location=article-paragraph&amp;redirectUrl=%2Fworld%2Fuk%2Fuk-housing-demand-seen-recovering-clearer-post-budget-outlook-2025-11-27%2F\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">here.<\/a><\/p>\n<p>There was no change to stamp duty, the tax paid when somebody buys a home, while improving debt forecasts helped push <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/uk\/uk-tax-hikes-placate-bond-markets-likely-be-costly-reeves-2025-11-26\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">government bond prices<\/a> up, which typically leads to a more favourable lending environment for banks and lower long-term mortgage rates for borrowers, analysts said.<\/p>\n<p>They also expect a new tax on homes valued over 2 million pounds ($2.6 million) to have little effect on the broader housing market.<\/p>\n<p>&#8216;A GOOD FIRST STEP&#8217;<\/p>\n<p>&#8220;The stability of the market (after the budget) is a good first step,&#8221; said James Thorne, portfolio manager at Columbia Threadneedle Investments, an investor in the major UK-listed homebuilders.<\/p>\n<p>Uncertainty over the budget has hurt sales in recent weeks, with five of the seven major listed homebuilders posting <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/business\/uk-homebuilder-crest-nicholson-lowers-annual-profit-expectations-2025-11-18\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">slower sales<\/a> since October. The companies declined to comment on the budget.<\/p>\n<p>According to data from property website Zoopla, uncertainty over the budget had led to an 8% year-on-year drop in homebuyer demand in October.<\/p>\n<p>Analysts at Investec and Barclays expect pent-up demand to support the traditional spring selling season as some buyers return to the market.<\/p>\n<p>NEW CHARGES ON HOMES WORTH MORE THAN 2 MILLION POUNDSReeves introduced an <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/uk\/uk-announces-new-tax-expensive-homes-2028-2025-11-26\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">annual tax<\/a> in England, starting in 2028, of 2,500 pounds for homes worth more than 2 million pounds, increasing to 7,500 pounds for properties valued at over 5 million pounds.<\/p>\n<p>She also increased the tax paid by landlords on rental income.<\/p>\n<p>Analysts do not believe the surcharge will hurt the sub-2 million pound market and see only a small impact from property income tax on the buy-to-let market.<\/p>\n<p>&#8220;The reality is the main part of the housing market is pretty unscathed,&#8221; Investec analyst Aynsley Lammin said.<\/p>\n<p>Berkeley, which builds more high-end homes across London than its rivals, is likely to be hit hardest among the listed firms, Barclays analyst Rajesh Patki said in a note.<\/p>\n<p>Berkeley&#8217;s shares fell as much as 5% after details of the budget were <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/uk\/uks-obr-publishes-economic-outlook-ahead-reeves-budget-speech-2025-11-26\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">unexpectedly released<\/a> early on Wednesday. They were up 0.7% on Thursday.The homebuilders sub index <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/quote\/.FTNMX402020\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(.FTNMX402020), opens new tab<\/a> was last up 1%.GOVERNMENT WANTS TO BUILD 1.5 MILLION NEW HOMESThe government last month pledged to streamline planning <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/uk\/british-government-tweak-planning-overhaul-boost-economic-growth-2025-10-13\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">rules<\/a> to help meet its target of building 1.5 million homes before the next election \u2014 a move <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/uk\/big-investors-welcome-reeves-extra-headroom-fret-over-long-term-2025-11-26\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">investors see<\/a> as more significant for the sector than Wednesday&#8217;s budget.<\/p>\n<p>Expectations for lower Bank of England interest rates remain unchanged following the budget, which analysts also view as supportive for affordability.<\/p>\n<p>Still, some in the industry warned Reeves missed an opportunity to boost demand.<\/p>\n<p>&#8220;If government fails to address the viability and affordability constraints, its housing ambitions will become increasingly unachievable,&#8221; said Steve Turner, Executive Director of the Home Builders Federation.<\/p>\n<p>Goodbody analyst Shane Carberry described the budget as an &#8220;okay&#8221; outcome for the homebuilders, but the backdrop remains sluggish.<\/p>\n<p>The UK homebuilders subindex has underperformed the broader FTSE all share index this year<\/p>\n<p>($1 = 0.7562 pounds)<\/p>\n<p data-testid=\"SignOff\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__extra_small__8Buss body-module__full_width__kCIGb body-module__extra_small_body__Bfz20 sign-off-module__text__LQAMP\">Reporting by Yadarisa Shabong and Raechel Thankam Job in Bengaluru; Editing by Emelia Sithole-Matarise<\/p>\n<p data-testid=\"Body\" dir=\"ltr\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf article-body-module__element__5eCce article-body-module__trust-badge__5mS3f\">Our Standards: <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.thomsonreuters.com\/en\/about-us\/trust-principles.html\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__medium__2Rl30 text-module__small__sph8i link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n<p><a href=\"https:\/\/www.reutersagency.com\/en\/licensereuterscontent\/?utm_medium=rcom-article-media&amp;utm_campaign=rcom-rcp-lead\" target=\"_blank\" dir=\"ltr\" class=\"button-module__link__A3sD0 button-module__secondary__70gBu button-module__round__QDFgq button-module__w_auto__Sem-F\" data-testid=\"LicenceContentButton\" rel=\"nofollow noopener\">Purchase Licensing Rights<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Budget clarity seen removing key obstacle for buyers Analysts see pent-up demand lifting spring sales HBF warns UK&hellip;\n","protected":false},"author":2,"featured_media":203662,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[174],"tags":[85421,84105,79,84370,82500,84896,84110,82543,82538,82546,82556,82549,82541,82550,82776,84041,84146,82528,94004,82532,82777,82547,82557,82540,82548,82551,82544,83116,179,18,55396,85420,82520,32356,82516,45748,85214,2598,112120,92746,19,84368,17,83122,82565,82508,82510,90314,23083,105305,105307,82518],"class_list":{"0":"post-203661","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-anlins","9":"tag-blr","10":"tag-business","11":"tag-cen","12":"tag-cmpny","13":"tag-cycp","14":"tag-cycs","15":"tag-destabn","16":"tag-destabx","17":"tag-destbnx","18":"tag-destd","19":"tag-destdnp","20":"tag-deste","21":"tag-destfun","22":"tag-destg","23":"tag-destm","24":"tag-destortao","25":"tag-destoukbsm","26":"tag-destoukdnm","27":"tag-destouktpm","28":"tag-destpge","29":"tag-destpsc","30":"tag-destrbn","31":"tag-destrnp","32":"tag-destu","33":"tag-destucdptest","34":"tag-destuki","35":"tag-eco","36":"tag-economy","37":"tag-eire","38":"tag-emea","39":"tag-erep","40":"tag-europ","41":"tag-fin","42":"tag-gb","43":"tag-gen","44":"tag-gfin","45":"tag-home","46":"tag-home1","47":"tag-hsebld","48":"tag-ie","49":"tag-int","50":"tag-ireland","51":"tag-mce","52":"tag-mtpix","53":"tag-pol","54":"tag-publ","55":"tag-rea","56":"tag-real","57":"tag-reale","58":"tag-reop","59":"tag-weu"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/115623769340267871","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/203661","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=203661"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/203661\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/203662"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=203661"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=203661"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=203661"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}