The housing crisis rages on. Low supply is hamstringing first-time buyers’ ability to get on the ladder and as a result it’s garnering even larger political focus. Ahead of the party conferences in October, we saw new commitments from Government to boost both supply and demand through the extension of the Help to Buy equity loan.
Housing is a key market for the insulation industry and high targets for the delivery of new homes have been a key driver for sales this year – we have seen annual growth in our mineral wool insulation for cavity wall application as well as quarterly growth in glass mineral wool sales. The government’s commitment to Help to Buy is going to maintain demand for mineral wool products into the future.
Of course the key challenge the entire industry faces in meeting housing need is the availability of skills. Brexit’s effect on the value of Sterling is already removing the incentives to come to the UK to work. For the many construction workers from Eastern Europe living here who send money back home, working in the UK simply gives them less money than they once had. And, should we be faced with a deal that halts immigration, the issue will only become more acute.
Given the uncertain climate, innovation is going to be the name of the game for businesses seeking to maintain strong sales.