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Builder and rampant house buyer confidence driving construction

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  • 10/12/2020
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Builder and rampant house buyer confidence driving construction
Monthly construction output increased by one per cent in October 2020, rising to £13,066m, after a half-year run of UK construction growth.

According to ONS figures, this is the sixth consecutive month of growth since the record decline of 41.2 per cent in April 2020 but is the smallest monthly increase in that time.

Andy Sommerville, director at Search Acumen, said: “This latest data shows an uplift in construction output from the troughs of lockdown, driven in part by rampant buyer activity in the housing market and improving confidence levels among housebuilders.

“The higher stamp duty threshold has increased demand for properties, triggered by buyers rushing to lock in the financial benefits on offer. Historically low mortgage rates and changing consumer preferences toward larger properties with access to green space are further injecting stimulus in the buyer side of the market.

“As a result, housebuilders may have rapidly scaled up supply to capitalise on elevated levels of demand.

“The distribution of an effective coronavirus vaccine is improving the prospects of economic activity returning to normal soon. This is partially offsetting fears that unemployment may rise sharply in 2021 once government support schemes are wound down, which will help maintain demand in the property market.”

He added: “A better outlook for next year is likely to prompt housebuilders to continue with building projects.”

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