Lack of New Homes May Save U.K. Market From Brexit-Driven Crash
- Mismatch between supply and demand is seen buoying the market
- Shortfall is most acute in London, where prices are highest
A bricklayer puts cement on bricks at a residential construction site in Grays.
Photographer: Simon Dawson/BloombergThis article is for subscribers only.
Anyone fearing a Brexit-induced house-market crash in the U.K. would do well to remember one simple fact: the country isn’t even close to keeping up with demand for new homes.
While a sharp drop in their shares on Thursday showed that homebuilders aren’t immune to uncertainty over Britain’s economic future, figures released the same day may be more important. They show that construction continues to lag behind the government’s targets, suggesting that a failure to meet demand will buoy the market for some time to come.