Brexit: implications for the housing market and construction industry

The UK voted to leave the European Union in a referendum on the 23 June 2016. This decision will have an impact on a wide range of policy areas and industries, including the house building industry.

This Library briefing paper summarises very early indications of the impact of the vote on the UK housing market and house buiding industry. The topics covered include:

• construction industry confidence;
• the housing market;
• house prices;
• house builders’ shares;  
• the labour market; and
• potential policy responses.

The social housing sector has identified an opportunity arising out of the Brexit vote to press for the development of more housing at sub-market rents. The NHF has put an offer to the Government setting out the sector’s readiness to build “through the uncertain times following the vote to leave the EU” and has requested flexibility to invest in a variety of tenures.

The sector is hopeful that the Autumn Statement 2016 will deliver on some of the funding flexibilities requested.