David Cameron’s affordable housing promise at risk as construction output slows further

UK Prime Minister David Cameron I party conference this year announced that his government will take up measures to make the houses more affordable in UK as well as London. Property prices in London have sky-rocketed after 2008/09 crisis time dip and many including policymakers at Bank of England (BOE) warned against high supply shortage.

Latest promise by Mr. Cameron was aimed at the Labour party's criticism that his party mostly stands for the rich.

However that promise could back fire on his face as supply shortage are likely to persist in the near future. In last five year Flat prices in UK has risen 60%, while wages have just started picking up and that stands at 3%. Affordability is seriously depleting in UK.

• Latest data from Office of National Statistics (ONS) shows that construction output declined yearly for the first time since May 2013.
• In August 2015, output in the construction industry was estimated to have decreased by 4.3% compared with July 2015 and decreased by 1.3% compared with August 2014.
• All new work decreased in August 2015 compared with July 2015 by 3.6%, repair and maintenance (R&M) decreased by 5.6% over the same period. All work types reported decreases.

With Mr. Osborne planning to reduce UK's budget deficit and bring the country to surplus, it is not clear how Mr. Cameron plans to keep his promise, without additional expenditure on housing and relying on market forces and private players.

Pound has shown some weakness over the release, currently trading at 1.536 against Dollar.