Surge forecast for private housing starts

The value of private housing starts is forecast to increase by 53% this year and 11% in 2022 according to latest forecasts by industry information supplier Glenigan.

The firm’s UK Construction Industry Forecast 2021-23 finds that by 2023 the value of private housing project starts is anticipated to reach 2017 levels. Glenigan’s research team calculates the value of each project according to its size and the number of units and this year forecasts the value of starts to be £18 billion, rising to £20.8 billion in 2023. The figure was just £11.8 billion in 2020.

The report says: “After the initial disruption of the first national lockdown, the housing market has experienced a ‘mini-boom’ as pandemic restrictions and remote working fuelled the demand for larger properties, especially in market towns and semi-rural settings.

“As a result, private housing project starts have performed very well during the first five months to May, increasing 70% against the previous year.”

This is set to slow though, says Glenigan, as weak household earnings and rising unemployment overshadow housing market growth once the cut to Stamp Duty comes to an end.

The report says that detailed planning approvals in 2021 have been strong, with a 41% increase in approvals …