Home building hots up

2 July 2021

First, the good news. Hirers frequently tell me that the main factor behind the strong demand for equipment is house building activity in their localities, and this is borne out by data just released by the Government. 

There were 49,470 completed homes in the first quarter of 2021 – the highest figure in over 20 years and a 4% increase compared to the last three months of 2020. 

During the same period, 46,010 homes were started, the highest number in nearly 15 years and a 7% increase on the previous quarter.

The figures also show an increase in house building starts in London with 14,530 in the year to March 2021, an increase of 18% compared to the previous 12 months.

In addition, the figures highlight that in 2020-21 houses made up 81% of all new build dwellings, as against flats. This is the highest proportion since 2000-01.

Housing Secretary Robert Jenrick said this shows the effectiveness of measures put in place by the Government to support the industry during the pandemic. 

These included allowing builders to seek more flexible construction site working hours with their local councils and extending certain planning permissions that would otherwise lapse, in order to keep the sector moving.

The First Homes initiative has also been introduced to help first-time buyers by offering homes at a discount of at least 30% compared to the market price, and a 95% mortgage guarantee scheme helps such purchasers secure a mortgage with a 5% deposit. 

That’s a lot of building activity and it looks set to continue. So that’s the good news.

The not so good news is that it’s likely to create even more demand for equipment and materials, at a time when there are supply chain issues, as discussed here previously...