How supply chain issues are impacting the UK real estate industry


With supply chain issues having disrupted the UK housing market, it’s making it harder for us to not only purchase a new home, but to make simple repairs and renovations on our existing homes.

Understanding what is causing the problems can help us navigate how best to move forward in this challenging market.

UK falls behind on new homes

The construction of 300,000 new homes per year, which was backed by the government, has not been achieved since the 1970s. These targets are now mere empty promises, highlighting the failure of the government’s goal to create more new homes for the country.

It’s estimated that only 170,200 new homes were built across England in 2022, which poses a significant 43% shortfall from the annual target.

With the failure to meet these targets, the gap between supply and demand continues to increase, despite the current state of the economy. The country is now forced to increase property prices, making it more difficult than ever to purchase a new home. As buying a home is nearly impossible, there are still companies that can help you buy a home. Some financial institution gives home loans and other loans that you can use. With their help, you can check out a birmingham investment property whenever you want.

How supply chain is impacting the real estate industry

So, why is the property market feeling such an impact from supply chain issues? Let’s take a look at a few of the reasons why purchasing a new build home is proving so difficult.

Shortage of skilled manual labourers

The construction of new homes relies solely on labour, and builders have seen a shortage of skilled workers over the last few years. The government’s target of building 300,000 new homes by 2030 is still unachievable with the labour that is currently available.

It’s also predicted that the industry will need to seek around 950,000 workers in the next seven years to meet the increasing demand from the housing market.

Raw materials

Demand for raw construction materials is continuing to increase, with prices seeing an all-time high in 2021. Supply remains limited due to various harvesting limits and sourcing struggles, with homes having to wait even longer to be built.

There’s also been a huge drop in brick and concrete deliveries as the industry struggles with the rising costs of these materials.

Increased production times

Once everything has been obtained to begin the construction work, the building process still takes time. Production times for raw materials and manufactured goods can make finishing a home extremely time-consuming.

New build delays can cause undue stress and huge additional costs for the new homeowner, such as having to find temporary accommodation in the interim.

Increased cost of energy

With fuel costs still through the roof, the transportation of goods to begin construction is proving rather costly for builders. Rising inflation has certainly caused uncertainty for construction firms, with the industry having to deal with a whole new set of challenges.