Tight supply limits threat from rising construction

The current surge in homes under construction has few parallels with the building boom that preceded the house price crash in the late 2000s. The build-up of homes under construction has largely been caused by delays in sourcing materials and labour, rather than overbuilding. Many of the uncompleted homes have already been sold and a tight market will help soak up the extra supply even as demand eases. We therefore think the threat from oversupply is small.