Housebuilders cut back on construction as UK mortgage rate rises spook buyers

Work on residential building sites slips in May to weakest level since 2009

• UK banks pull hundreds more mortgage deals as fixed rates rise

Britain’s housebuilders are cutting back on the construction of new homes amid signs that potential buyers are being spooked by the prospect of fresh increases in mortgage rates over the coming months.

The latest report on the construction sector found that work on residential building sites slipped in May to the weakest level since 2009, apart from when sites were locked down during the pandemic.