How the UK’s Construction Boom Will Affect the Housing Market

The UK’s construction industry is experiencing a significant boom, driven by the government’s plans to improve the affordability of housing. This boom is expected to have a major impact on the housing market, with many experts predicting a significant increase in the number of new homes being built.

What’s Driving the Boom?

The main driver of the construction boom is the government’s commitment to improving the affordability of housing. This includes plans to increase the supply of affordable housing, as well as measures to help first-time buyers get onto the property ladder.

How Will the Boom Affect the Housing Market?

The construction boom is expected to have a number of effects on the housing market. One of the most significant is the increase in the number of new homes being built. This will help to address the current shortage of housing, particularly in areas where demand is high.

Another effect of the boom is the potential for house prices to rise. As the demand for housing increases, so too do prices. This could make it more difficult for first-time buyers to get onto the property ladder.

What Does This Mean for Investors?

The construction boom presents a number of opportunities for investors. One of the most obvious is the potential for investment in construction companies. As the demand for new homes increases, so too does the demand for construction services.

Another opportunity for investors is the potential for investment in companies that supply the construction industry. This includes companies that manufacture building materials, as well as those that provide equipment and services to construction companies.

Construction Stocks to Buy

There are a number of construction stocks that are well-positioned to benefit from the boom. These include:

• Taylor Wimpey: This company has a strong track record of delivering high-quality homes and has a significant presence in the UK market.
• Persimmon: This company has a diverse range of homes and a strong presence in the UK market.
• MJ Gleeson: This company has a strong focus on affordable housing and is well-positioned to benefit from the government’s plans to improve affordability.

Supply Chain Opportunities

In addition to construction companies, there are also opportunities for investment in companies that supply the construction industry. These include:

• Ibstock: This company manufactures building materials, including bricks and concrete blocks.
• Forterra: This company manufactures building materials, including bricks and concrete blocks.
• Breedon: This company supplies aggregates and cement to the construction industry.
• Genuit: This company provides pipes and filtration systems to the construction industry.

Conclusion

The UK’s construction boom is expected to have a significant impact on the housing market. While there are potential risks, such as rising house prices, there are also opportunities for investors. By investing in construction companies and companies that supply the construction industry, investors can benefit from the boom and help to support the growth of the UK’s economy.

Houses under construction

Construction workers on site

Newly built homes

Construction equipment