Stamp Duty holiday fuels recovery in construction activity

Volume of new private housing output jumps 2.7% over most recent three months compared to previous three months1

Andy Sommerville, Director at Search Acumen, says:

“This latest data reveals the impact the anticipated earlier end date for the Stamp Duty holiday has had on activity in the construction industry before the announced extension.

“The slight rise in new private housing construction output may be partly driven by strong buyer demand in the property market. Housebuilders may have been more responsive to push ahead with new construction projects to capitalise on higher buyer activity.

“The extension of the SDLT holiday into June and the tapering off of the threshold in September may incentivise firms to continue to push to complete projects.

“Buyer activity could remain strong in the medium to long term, driven in part by the pandemic changing consumer preferences toward favouring larger properties with access to green space and the weakening of ties to physical offices. Stronger willingness to relocate to areas beyond cities and commuter belts will create a more even distribution of demand for properties in different areas across the UK, offering housebuilders more possibilities over where to begin new projects.

“If there is a rise in buyer interest in areas not traditionally associated with high transaction levels, the property market will need to adapt to improve the accessibility and quality of housing location data so it is easily available to conveyancers, planners and prospective homeowners alike.”

Sources:
1ONS: Construction output in Great Britain, January 2021

 

This article was submitted to be published by Search Acumen as part of their advertising agreement with Today’s Conveyancer. The views expressed in this article are those of the submitter and not those of Today’s Conveyancer.

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