North West England and the West Midlands had the largest mismatch between the supply and demand of housing in 2023. If the number of dwellings added to the housing stock continues being lower than the number of new households formed there would be a housing shortage. However, London showed some signs of having a housing shortage, as it had the largest difference between the homes built and the households formed between 2016 and 2023.

In August 2024, the housing market in the UK saw a ** percent increase in demand and ** percent increase in the number of agreed sales. New inventory has also increased, with the stock of new homes for sale up by ** percent and new supply, ** percent. In 2023, house prices slightly declined, as the market cooled under the impact of soaring interest rates and worsened homebuyer sentiment.

Research in modelling housing market dynamics using agent-based models (ABMs) has grown due to the rise of accessible individual-level data. This research involves forecasting house prices, analysing urban regeneration, and the impact of economic shocks. There is a trend towards using machine learning (ML) algorithms to enhance ABM decision-making frameworks. This study investigates exogenous shocks to the UK housing market and integrates reinforcement learning (RL) to adapt housing market dynamics in an ABM. Results show agents can learn real-time trends and make decisions to manage shocks, achieving goals like adjusting the median house price without pre-determined rules. This model is transferable to other housing markets with similar complexities. The RL agent adjusts mortgage interest rates based on market conditions. Importantly, our model shows how a central bank agent learned conservative behaviours in sensitive scenarios, aligning with a 2009 study, demonstrating emergent behavioural patterns.

Housing Index in the United Kingdom decreased to 511.50 points in May from 513.50 points in April of 2025. This dataset provides - United Kingdom House Price Index - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Just as in many other countries, the housing market in the UK grew substantially during the coronavirus pandemic, fueled by robust demand and low borrowing costs. Nevertheless, high inflation and the increase in mortgage rates has led to house price growth slowing down. According to the forecast, 2024 is expected to see house prices decrease by ***** percent. Between 2024 and 2028, the average house price growth is projected at *** percent. A contraction after a period of continuous growth In June 2022, the UK's house price index exceeded *** index points, meaning that since 2015 which was the base year for the index, house prices had increased by ** percent. In just two years, between 2020 and 2022, the index surged by ** index points. As the market stood in December 2023, the average price for a home stood at approximately ******* British pounds. Rents are expected to continue to grow According to another forecast, the prime residential market is also expected to see rental prices grow in the next years. Growth is forecast to be stronger in 2024 and slow down in the period between 2025 and 2028. The rental market in London is expected to follow a similar trend, with Central London slightly outperforming Greater London.

England accounts for the majority of sales in the residential real estate market in the United Kingdom. In September 2024, the total number of housing transactions in the country amounted to nearly 92,000, with approximately 80,000 of these property sales being completed in England. Historically, sales activity has observed notable fluctuations because of the seasonal nature of the market, but also other trends in the market, such as the slump in April 2020 related to the COVID-19 pandemic A declining number of home sales The annual number of home sales in the UK has declined since 2021, with 2023 exhibiting the lowest transaction volume since 2012. The main reason for that trend is the increase in the cost of housing. House prices grew year-on-year between 2012 and 2022, with growth accelerating toward the end of the period due to the record-low mortgage rates. As the cost of living crisis hit in 2022, the Bank of England hiked interest rates, resulting in dramatically higher home finance costs. With house prices at their peak and a double increase in borrowing costs, many prospective homebuyers could not afford to buy and placed their plans on hold. How will prices develop in the next five years? After a slight decline in 2024, house prices in the UK are expected to pick up in the next year and continue on an upward trend until 2028. On average, house prices are projected to grow by 2.7 percent per year.

The UK residential building construction industry, valued at approximately £185.55 million in 2025, is projected to experience moderate growth, with a Compound Annual Growth Rate (CAGR) of 2.26% from 2025 to 2033. This growth is fueled by several factors. Increased urbanization and population growth in key cities like London, Birmingham, Glasgow, and Liverpool are driving demand for new housing, particularly within the villas and landed houses, and condominiums and apartments segments. Government initiatives aimed at addressing housing shortages and improving infrastructure also contribute positively. However, the market faces constraints including fluctuating material costs, skilled labor shortages, and potential economic downturns which could impact investment and consumer confidence. The industry is highly competitive, with major players such as Willmott Dixon Holdings, Mace, Skanska UK, and Balfour Beatty vying for market share. These companies leverage expertise in project management, sustainable construction practices, and innovative technologies to remain competitive. The geographical distribution of projects varies, with London and other major cities expected to dominate, but regional growth will be influenced by local economic conditions and availability of land. The industry's future trajectory will depend on addressing these challenges effectively while capitalizing on the opportunities presented by population growth and government support. The construction sector's performance is closely tied to broader economic health. Interest rate fluctuations and changes in mortgage availability directly influence consumer purchasing power, impacting housing demand. Environmental regulations and a growing emphasis on sustainable building practices are reshaping the industry, promoting the adoption of eco-friendly materials and energy-efficient designs. This trend aligns with broader societal concerns regarding climate change and resource management, impacting material sourcing and project specifications. Competition is likely to intensify as established firms consolidate and new entrants emerge, particularly those specializing in sustainable and technological innovations. Strategic partnerships and mergers and acquisitions will play a significant role in shaping the competitive landscape, leading to increased efficiency and potentially improved capacity to manage the industry's challenges and capitalize on its growth opportunities. Recent developments include: December 2022: 375 low-carbon rental homes are delivered as part of a historic restoration project for Bristol City Center through public-private partnerships., December 2022: As the One Sydney Harbour residential building from Lendlease celebrates a critical milestone of "topping out" of Residences One, marking the completion of the highest structural point of the 72-story tower, it has secured more than $3.7 billion in sales over its three towers.. Key drivers for this market are: 4., Growth in Commercial Activities and Increased Competition4.; Increasing Demand for Affordable Housing Units. Potential restraints include: 4., Lack of Housing Spaces and Mortgage Regulation can Create Challenges. Notable trends are: Government mandates pertaining to Energy Efficiency.

The Greater London Authority's ‘Housing in London’ report sets out the evidence base for the Mayor's housing policies, summarising key patterns and trends across a wide range of topics relevant to housing in the capital. The report is the evidence base for the Mayor’s London Housing Strategy, the latest edition of which was published in May 2018. The 2024 edition of Housing in London can be viewed here. It includes monitoring indicators for the London Housing Strategy, and five thematic chapters: * 1. Demographic, economic and social context * 2. Housing stock and supply * 3. Housing costs and affordability * 4. Housing needs, including homelessness and overcrowding * 5. Mobility and decent homes Where possible, the data behind each year's report's charts and maps is made available below. To provide feedback or request the document in an accessible format, please email housing.analysis@london.gov.uk

The UK real estate services industry, valued at approximately £32.45 billion in 2025, is projected to experience steady growth, with a compound annual growth rate (CAGR) of 3.00% from 2025 to 2033. This growth is driven by several key factors. Firstly, the ongoing demand for both residential and commercial properties in major UK cities like London, Manchester, and Birmingham fuels the property management and valuation segments. Secondly, increasing urbanization and population growth contribute to a sustained need for property services. Thirdly, technological advancements, such as proptech solutions for property search and management, are streamlining operations and improving efficiency within the sector. The market is segmented by property type (residential, commercial, other) and service type (property management, valuation, other services). While residential properties currently dominate the market, the commercial sector is also experiencing significant growth, particularly in areas with strong economic activity. Key players such as Hammerson, British Land, and Rightmove are well-positioned to capitalize on these trends. However, challenges remain, including economic uncertainty, fluctuations in interest rates impacting investment, and regulatory changes influencing property transactions. The industry's resilience will be tested by navigating these challenges while capitalizing on the long-term growth opportunities presented by the UK’s evolving real estate landscape. The regional distribution of the UK real estate services market reflects the concentration of economic activity and population density. London and the South East are expected to maintain a significant market share, owing to their high property values and demand. However, other regions, particularly those experiencing population growth and infrastructure development, are anticipated to show considerable growth potential. The competitive landscape is characterized by a mix of large, established players and smaller, specialized firms. The presence of prominent players across various segments – from property developers (Berkeley Group) to REITs (Tritax Big Box) and housing associations (Bridgewater Housing) – highlights the industry's diverse structure and the opportunities for various business models. The forecast period will see ongoing consolidation and the emergence of innovative business models, particularly within the proptech sector. This dynamic environment requires agile strategies and adaptive business models to succeed in this evolving market. Recent developments include: January 2023: United Kingdom Sotheby's Property Business Acquired by the Dubai Branch of Sotheby's. UK Sotheby International Realty was previously owned by Robin Paterson, who sold the business to his business partner and affiliate, George Azar. George Azar currently holds and operates Sotheby's Dubai and the MENA region., November 2022: JLL identified a shortage of quality rental homes as a long-term problem for the UK, which the recent boom in rentals has accentuated. This unmet need for quality rental homes has led to continued investor interest in purpose-built rental properties in UK city centers. JLL reported that annual investment in UK living real estate reached £10bn (USD 12.73 bn) in Q3 2022, setting living on track for another record year.. Key drivers for this market are: Improvements in Infrastructure and New Development, Population Growth and Demographic Changes. Potential restraints include: Housing Shortages, Increasing Awareness towards Environmental Issues. Notable trends are: Increasing in the United Kingdom House Prices.

The UK manufactured homes market, part of a global sector exhibiting a CAGR exceeding 4.60%, presents a significant opportunity for growth. Driven by increasing housing shortages, particularly in urban areas, rising construction costs for traditional homes, and a growing preference for sustainable and eco-friendly housing options, the market is poised for expansion. The segment encompassing single-family manufactured homes currently dominates, fueled by demand from first-time buyers and those seeking affordable housing solutions. However, the multi-family segment is projected to witness robust growth, driven by the increasing popularity of modular apartment complexes and the need for cost-effective, high-density housing solutions in urban centers. Key players like Lendlease Corporation Limited and Laing O'Rourke are strategically positioning themselves to capitalize on this burgeoning market, alongside specialized manufacturers like Campion Homes and Timberlogbuild catering to specific niche demands. Government initiatives promoting sustainable housing and affordable homeownership are expected to further bolster market growth. Despite these positive factors, challenges remain. Fluctuations in material prices and supply chain disruptions can impact production costs and profitability. Furthermore, regulatory hurdles and public perception regarding the quality and longevity of manufactured homes continue to pose restraints. Addressing these concerns through industry collaboration, improved building standards, and effective marketing campaigns will be crucial for sustained market growth. The market’s future hinges on overcoming these obstacles and capitalizing on the increasing demand for affordable and sustainable housing solutions. The UK, with its unique housing challenges and growing awareness of sustainable living, offers a particularly compelling sub-market within this global trend. Analyzing specific regional trends within the UK itself (e.g., comparing London to the rest of the country) would offer even further actionable insights for investors and stakeholders. Recent developments include: June 2022 - TopHat announced intention to deliver Europe's largest modular homes facility. Capable of delivering one house every hour, the state-of-the-art facility will use precision engineering techniques to create c.4,000 homes per year. The new premises will be operational from 2023, creating 1,000 highly skilled jobs., May 2022 - Campion Homes have been appointed by Blackwood to develop 66 new smart tech homes in Charleston, Dundee. The project will deliver a mix of two-bedroom flats and four & to five-bedroom homes.. Notable trends are: Rapid Urbanization in the Region is Driving the Market.

This project will explore the impact of the economic recession on cities and households through a systematic comparison of the experiences of two English cities, Bristol and Liverpool.The research will use both quantitative and qualitative approaches. Interviews will be held in both cities with stakeholders from across the public, private and voluntary and community sectors. A social survey of 1000 households will also be conducted in the two cities covering 10 specific household types. A series of in-depth qualitative interviews will then be held with households drawn from the survey and chosen to illustrate the spectrum of experience.In the context of globalisation and the rescaling of cities and states, the research aims to develop our understanding of the relationship between economic crisis, global connectivity and the transnational processes shaping cities and the everyday lives of residents. It will explore the 'capillary-like' impact of the crisis and austerity measures on local economic development, and local labour and housing markets, as well as highlight the intersecting realities of everyday life for households across the life course.The research will document the responses and coping strategies developed across different household types and evaluate the impact and effectiveness of 'anti-recession' strategies and policies.

The London Housing Strategy sets out the Mayor's plans to tackle the capital's housing crisis and his vision to provide all Londoners with a good quality home they can afford.

The draft strategy was published for a 12-week consultation between 6 September and 7 December 2017. Responses were received from over 2,000 members of the public via surveys, online discussion threads, and written correspondence. Over 200 organisations also submitted written responses to the draft strategy.

The consultation response report, available at www.london.gov.uk/housing-strategy, provides an accurate summary of responses to the consultation. Quantitative information used to develop this report are set out below.

The European residential construction market, valued at €1.08 billion in 2025, is projected to experience robust growth, driven by several key factors. A rising population, particularly in urban centers across major European economies like the UK, Germany, and France, fuels the demand for new housing. Furthermore, government initiatives aimed at stimulating affordable housing and addressing housing shortages, coupled with improving economic conditions in several regions, contribute to market expansion. The market is segmented by property type (single-family and multi-family) and construction type (new construction and renovation), with new construction currently dominating due to higher profitability and demand for modern housing amenities. Growth in the multi-family segment is expected to accelerate due to increasing urbanization and changing lifestyle preferences. While challenges remain, such as fluctuating material costs, skilled labor shortages, and stringent building regulations, these are likely to be mitigated by technological advancements in construction and sustainable building practices. Key players like Bellway plc, Skanska AB, and Persimmon plc are actively shaping the market landscape through strategic acquisitions, technological integration, and expansion into new regions. The projected CAGR of 5.67% suggests a consistently growing market over the forecast period (2025-2033), indicating significant investment opportunities. The renovation segment is expected to witness steady growth, driven by the increasing need to upgrade existing properties to meet modern standards of energy efficiency and sustainability. Government incentives and regulations promoting green building practices are further bolstering this segment. Competition within the market is intense, with established players focusing on innovation, diversification, and efficient project management to maintain their market share. The regional performance will vary depending on economic conditions and governmental policies within each nation. The UK, Germany, and France are anticipated to be the largest markets, driven by stronger economies and higher population density. However, other countries within the specified region (including Italy, Spain, Netherlands, Belgium, Sweden, Norway, Poland, and Denmark) will contribute significantly to the overall market growth, particularly as housing shortages are addressed through public and private sector investments. Recent developments include: April 2023: Apollo Global Management Inc. agreed to buy part of a portfolio of apartments from Vonovia SEfor €1 billion ($1.1 billion), with the largest German residential deal in months suggesting confidence is returning to the under-pressure sector. The private equity firm will acquire a minority stake in 21,000 homes in the German state of Baden-Wuerttemberg at a discount of about 5% to the portfolio’s year-end valuation., October 2023: The new housing association, Sovereign Network Group (SNG), announced its formation yesterday following a tie-up between 61,000-home Sovereign and Network Homes, which managed 21,000 properties. The new organisation will be a member of the G15 group of London’s largest landlords, and will manage more than 82,000 homes with 210,000 customers across London, Hertfordshire and the South of England.. Notable trends are: Increasing in Investments in Multifamily Residential Construction.

UK Prefab Wood Buildings Market size was valued at USD 7.84 Billion in 2024 and is expected to reach USD 10.01 Billion by 2032, growing at a CAGR of 3.1% from 2026 to 2032.Key Market Drivers:Housing Shortages and Government Targets: The UK confronts a severe housing shortage, which is boosting demand for speedier construction options such as prefabricated wood houses. According to the UK Ministry of Housing, Communities and Local Government (formerly the Department for Levelling Up, Housing and Communities), the government aims to build 300,000 new homes each year by the mid-2020s to address the housing problem.Environmental Regulations and Net-Zero Targets: The UK government's aim to achieving net zero carbon emissions by 2050 is speeding up the transition to sustainable building materials. The UK Green Building Council notes that buildings account for approximately 40% of UK carbon emissions.

The purpose of this report is to gather together in one volume data on important trends related to domestic energy use, and in particular on the measures that have been taken to improve energy efficiency. Most of the tables relate to total housing stock and will be mainly of use to Government Departments and others interested in research or planning at that level. The reports cover the period from 1970 (just before the first oil crisis) until the present.

The series consists of a main fact file with figures for the GB housing stock. This has a full explanation of the background behind the topics covered and includes information that is only available at the GB level. The other two fact files break the data down by tenure (owner occupied, council rented, private rented and registered social landlord) and country (England, Scotland, Wales and Northern Ireland).

Published by Building Research Establishment Ltd

The housing costs inflation rate for low-income households in the United Kingdom was noticeably higher than that of high-income ones between April 2022 and April 2023, during a serious cost of living crisis in the UK. As of June 2024, however, the inflation rate for high-income households was higher than that of middle or low incomes ones.

Building contractors and developers depend on various socio-economic factors, including property values, underlying sentiment in the housing market, the degree of optimism among downstream businesses and credit conditions. All of these drivers typically track in line with economic sentiment, with recent economic shocks spurring a difficult period for building contractors and developers. Nonetheless, the enduring need for building services, particularly to tackle housing shortages across the continent, ensures a strong foundation of work. Revenue is forecast to grow at a compound annual rate of 2.3% to reach €1.3 trillion over the five years through 2025. Operational and supply chain disruption caused by the pandemic reversed the fortunes of building contractors and developers in 2020, as on-site activity tumbled and downstream clients either cancelled, froze or scaled back investment plans. Aided by the release of pent-up demand and supportive government policy, building construction output rebounded in 2021. Excess demand for key raw materials led to extended lead times during this period, while input costs recorded a further surge as a result of the effects of rapidly climbing energy prices following Russia’s invasion of Ukraine. Soaring construction costs and the impact of interest rate hikes on both the housing market and investor sentiment led to a renewed slowdown in building construction activity across the continent. However, falling inflation and the start of an interest rate cutting cycle have spurred signs of a recovery in new work volumes, supporting anticipated revenue growth of 2.3% in 2025. Revenue is forecast to increase at a compound annual rate of 6.7% to €1.7 trillion over the five years through 2030. Activity is set to remain sluggish in the medium term, as weak economic growth and uncertainty surrounding the impact of the volatile global tariff environment on inflation and borrowing costs continue to weigh on investor sentiment. Contractors and developers will increasingly rely on public sector support, including measures to boost the supply of new housing, as countries seek to tackle severe housing shortages. Meanwhile, the introduction of more stringent sustainability requirements will drive demand for energy retrofits.

UK Prefabricated Buildings Market size was valued at USD 7.30 Billion in 2024 and is projected to reach USD 12.54 Billion by 2032, growing at a CAGR of 7.0% from 2026 to 2032.Key Market Drivers• Housing Shortage and Government Initiatives: The UK has faced a persistent housing shortage, prompting the government to implement various initiatives to accelerate housing delivery. Prefabricated buildings offer a faster, more efficient solution to traditional construction methods, making them increasingly attractive for addressing housing deficits. In 2021, the UK government launched the USD 11.5 billion Affordable Homes Programme aimed at delivering up to 180,000 new homes, with modern methods of construction (MMC) including prefabrication strongly encouraged.• Sustainability and Net Zero Carbon Targets: Environmental concerns and the UK's commitment to reach net zero carbon emissions by 2050 have boosted the prefabricated buildings market, as these construction methods typically produce less waste, use fewer resources, and can be designed to be more energy-efficient. In 2023, the Department for Business, Energy & Industrial Strategy reported that prefabricated buildings could achieve 20-30% better energy efficiency than traditional builds, contributing significantly to the UK's 2050 net zero target.