Buy now Alexander tells advisers
He says new house construction is about to undergo a substantial decline and because residential building has a large multiplier impact throughout the economy the falling away of activity leaves the risk of recession on the table. “It also implies downside risks to interest rates which could produce rapid falls through next year.”
Of significance, however, is the combination of falling house building at a time of accelerating population growth.
“There will be upward pressures on rents, and we can expect substantial debate soon, possibly pre-election, regarding the supply of rental property in the context of the government actively taking moves to discourage its provision by individuals.”
Alexander says there will also be house price implications – especially once the migration boom enters the majority of people’s consciousness.
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