Supply/demand imbalance will continue in 2022 – warning

New home supply challenges will persist throughout the year, housebuilders have warned.

The WhatHouse? Predictions Report 22 reveals that while 71% of housebuilders are cautiously optimistic about the year ahead, 73% predict the impact of supply chain problems would be a key issue going into 2022.

Respondents believed the housebuilding industry has a lack of surety over inflation and product prices for materials and were concerned that product availability could be affected by border arrangements from 2022, including the UK’s new CA mark. 

Some 67% of housebuilders also expressed concern that an increase in the supply of new housing stock would be hampered by the scarcity of bricklayers and plasters, planning constraints, and logistical issues arising from Brexit. 

Daniel Hill, managing director of WhatHouse?, comments: “Throughout 2021 UK housebuilders raised concerns around supply chain shortages. The problem was reported by volume and SME housebuilders alike, with almost three-quarters of both groups reporting supply shortages of key building materials.”

“Looking ahead, more than a quarter said supply chain delays would have the greatest impact on the housebuilding sector in 2022.” 

Quinn Homes chief executive officer Mark Quinn adds: “For 2022, we see the continued constriction in the supply of new homes, as a result of the combination of price increases and shortages of materials and the delays in the planning system that have hampered construction significantly in recent years. We see these factors as underpinning the housing market in 2022.” 

Kelly Sharman, sales and marketing director of Hayfield Homes, says: “Given the supply chain and labour shortages that are creating delays to construction programmes, our biggest challenge in 2022 will be ensuring consistent high-quality delivery of new homes within a timely manner.”

“These ongoing issues – which have been significantly affected by the pandemic and Brexit – are having an impact on output and ultimately the number of new homes being delivered to customers.” 

Sharon Spinelli, sales and marketing director of Robertson Homes, concludes: “I expect many of the challenges of the last two years to continue into the coming year. Trade and material shortages and Covid restrictions have all placed pressure on teams with a knock-on effect on completion dates.”