Search Acumen comments on ONS Construction Output for October 2020
Andy Sommerville, Director at Search Acumen, comments on the latest publication of the ONS Construction Output for October 2020.
Main points:
- New private housing construction work rises 145% since height of first lockdown [1]
- However, new private housing construction activity dips 1.9% compared to previous month [1]
Andy Sommerville says:
“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. A better outlook for next year is likely to prompt housebuilders to continue with building projects.
“Digital innovation has been vital to keep the property market functioning for buyers and sellers during the pandemic. However, these innovations now need to be adopted by housebuilders to ensure supply can better meet the surge in demand. Improving data consumption and adoption of digital practices will help housebuilders make efficiency gains and reduce the cost of supplying new housing.”
Kindly shared by Search Acumen
Main article photo courtesy of Pixabay
