<p><span>Private housing output is set to fall 9% in 2023 following growth of 3% this year, according to the Construction Products Association (CPA).</span></p> <p><span>In its Autumn construction forecast, the CPA, which represents construction product manufacturers and suppliers, said that currently private housing activity was strong, with most major housebuilders sold through to Q1 2023. </span></p> <p><span>But the “financial market chaos” of September’s mini-Budget had impacted the sector, with interest rates set to peak at 4%. Activity had been expected to slow due to rising interest rates to 3% but the Budget announcement “worsened this forecast”. </span></p> <p><span>With mortgage rates under pressure, the CPA said that </span><span>for new home owners</span><span>, demand and house prices would be subdued. And some existing home owners could become “forced sellers” due to increased mortgage payments after more than a decade of low mortgage rates, “adding </span><span>further </span><span>pressure to the housing market”.</span></p> <p><span>The above would likely mean a fall in property transactions and prices </span><span>over the next year</span><span> with housebuilders reducing housebuilding targets, CPA said. But it forecast that private housing output would return to 1% growth in 2024 after 2023’s 9% drop.</span></p> <p><span>With the UK’s economic uncertainties, the CPA stated that demand for new build …