Financial downturns have done little to dampen the spectacular growth of the UK housing market since 1952. This is because one of the UK’s biggest issues has been the critical lack of housing — research shows that the UK is facing a shortage of 4 million homes! There is a need to build approximately 340,000 houses a year until 2031 to balance demand and supply. At present, the construction sector is only able to build 200,000 houses a year.
This undersupply has driven housing values across the country, resulting in maintained growth even in the face of Brexit. In 2018, housing values increased by 2.7% on average and by 6% – 8% in growth areas, quite unlike the 2008 financial crisis, where market values remained relatively stagnant until 2013.