UK Home Builders Expert Call with Knight Frank Key Takeaways

Goldman Sachs hosts a call with Knight Frank revealing a cautious outlook for UK home builders due to higher mortgage rates and build cost inflation. Market adjustments are expected to be gradual, primarily impacting pricing rather than transaction volumes.

Key Takeaways

• 1.UK housing market sentiment is cautious due to higher mortgage rates and geopolitical conflict, though the impact is expected to be gradual and reflected more in prices than volumes.
• 2.Knight Frank downgraded UK pricing forecasts for 2026 and 2027 to +1.5% and +3.0% respectively.
• 3.Home builders are shifting focus toward capital discipline and cash preservation as build cost inflation concerns rise and the land market remains subdued.

Table of Contents

• UK Home Builders: Expert Call with Knight Frank - Key Takeaways
• Impact of higher mortgage rates likely to be gradual
• Activity holding up but lagged impact likely
• Prices under pressure
• Demand side support needed
• London remains challenged
• Build cost inflation is an increasing concern
• Curtailed land investment
• Institutional demand supporting new build volumes
• Disclosure Appendix

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