(Reuters) –Persimmon is Britain’s No. Vistry Group Plc, the second largest homebuilder in Britain, and Persimmon, its small rival, highlighted strong demand for housing to support their outlook on Tuesday, despite persistent supply chain pressures.

Low-interest loans are helping the British housing sector, which is undersupplied. The September tax holiday that was intended to stabilize the market has expired. Last week’s surprise central bank decision to maintain rates also increased homebuilder stock.

Persimmon LON:) stated that it expects annual home sales to increase by 10% over the year before. Vistry, however, said the company was well on its way to achieving its annual earnings goal of 345 million pounds. This is more than twice the profit it earned in 2020.

Persimmon predicted that building costs would rise by approximately 5% in 2019 due to supply chain issues. Vistry however warned that such constraints could delay its construction as well as cause price hikes for certain products.

Vistry stated that it expects construction output to look similar to 2021’s first half. He also said the company expected inflation in building costs to average around 4-5% over the next twelve months.

According to last month’s survey, supply chain issues that are slowing down the UK economy’s recovery after lockdown will continue for at least one year.

($1 = 0.7414 pounds)