Alex Rose, Managing Director of Data Analytics at Hometrack, said:
“The lack of clarity around how key parts of the Government’s housing and planning bill are likely to survive the journey through parliament is impacting confidence in the house building sector especially key details around the starter home policy.
“Furthermore, the impact of the Brexit vote on housing market activity is clearly being felt in the lead up to June. Until now the dampening effect has been most prominent in the London commercial property market where international investment plays an important role. However, the growing sense among developers and investors to delay decisions to buy or sell property seems to be reflected in home purchase activity. Add to this rising build costs and it starts to become clear why the growth of new business is reducing impacting the overall picture of stagnation in the wider construction industry.”