The UK housing market is still on target to be quite short of the expected demand in housing which is possibly going to occur by the year 2020.  That is when the number of UK residents officially is expected to outnumber the number of residences available.  This will likely lead to more homelessness than the UK has ever experienced.  The problem however could be less urgent than before with the new building which is occurring across the country. 

The month of July saw the highest number of housing starts since this time during the year 2003.  The rise in house building though is leading to another problem, lack of building materials.  Not only that, but there is also a lack of skilled labour to make it all happen.

If the labour and materials are discovered it will surely lead to a less pressurised market and that will help the market come down further from the very fast start it experienced at the beginning of this year.

Recent data made public by Markit indicates the housing market is seeing a boom of sorts in building as July posted an index of 62.4 in the construction sector.  June posted an index of 62.6, so July saw a slight decrease in activity, but still indicates construction is strong.

Tim Moore with Markit, commented on the current trend of building which is taking place within the UK housing market, saying: "Looking ahead, a pressing concern for construction companies is the availability of materials and suitably skilled labour to support the recent growth streak.”

Moore added: "Cuts to supplier capacity have ushered in the worst period of input delivery delays since the survey began in 1997, while this summer has also been notable for construction firms reporting near-record increases in rates commanded for sub-contracted work."