Housebuilding at weakest level since start of pandemic, says RICS

Housebuilding is at its weakest level since the start of the pandemic. According to the latest RICS housebuilding workload activity index, the difference between those reporting an expansion in workload and those reporting a contraction dropped to minus 26 in the third quarter. It stood at minus 12 for the previous three months. The slowdown in construction activity has been driven by interest rate rises, which have increased the cost of borrowing, hitting builders and dampening demand for housing. The score was similar to the minus 27 registered at the start of the Covid-19 pandemic in the second quarter of 2020, when the construction sector was largely shut. It was the second lowest reading since the 2009 financial crisis. The FT (£)