Andy Sommerville, Director at Search Acumen, comments:
“Today’s figures show that the slowing UK housing market has now effectively hit a brick wall.
“For some, this is welcome relief. Particularly in the capital, stalled house prices mean first-time buyers finally have a better chance of catching up. With the exception of the top end London market – which has burst – the rest of the London market has deflated.
“But if we see a stalled housing market as a good news story, we’re very much off course. A healthy economy allows for gradual price growth alongside improved affordability on the part of the borrower. We’re a long way from that today. At every level of the housing ladder there’s stasis, and that will ultimately hurt our economy.
“Undoubtedly there will be wringing of hands and calls for more houses to be built to kick-start this anaemic market. But it’s not as simple as that. To make the most of the land we have, the industry needs to embrace smart data to make the right decisions. We need to better catalogue what we have and better plan for what we need to be able to meet bold new build targets. But, if we can embrace new technologies at hand today, we could start to see enough houses begin to be built more effectively and efficiently.”