A house price slowdown amid rampant cost inflation will throw viability up in the air

Richard Jones CROP

An impending reversal of the usual ‘high price growth-low inflation’ environment will lead to housing developers having to rethink their approach. Richard Jones gives some tips on how the industry should react

The residential sector is currently in very uncertain times.

Having come off the back of significant house price increases of around 15 -20% in the last two years, against a relatively low cost inflation, we are now seeing price rises levelling out against a rampaging cost inflation.


This is putting the viability equation under significant pressure. The expectation is , however, that the build cost inflation is unlikely to continue to increase at the current rate (once energy cost increases etc. are baked in) and therefore the current hyper cost inflation is likely to be relatively short term.

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