High borrowing costs are dampening demand for new homes, a housebuilding company has claimed. MJ Gleeson has become the latest housebuilder to make the claim as the proportion of first-time buyers shrinks.
The low-cost builder, whose homes start from about £116,000, said it sold fewer properties in the year to the end of June. It completed the sale of 1,723 homes in the latest financial year, compared to 2,000 the previous year.
The reduction in house sales reflects the downturn in the wider economy and the immediate impact of higher mortgage rates on buyers’ confidence, the company said.
