Glenigan’s forecast for the housing sector

According to the Glenigan Construction Forecast for 2020 and 2021, the British housing sector is scheduled to experience a distinct difference in growth over the course of the coming two years, with the private housing sector set to soar while social housing fluctuates.

To be specific, the private housing sector, by the end of 2019, is predicted to have witnessed a decline in the underlying value of project starts that amounts to a proportion of five per cent but, by the end of 2020, this value will leap to an increase of nine per cent which will steadily continue to rise to ten per cent by the end of 2021.

Glenigan themselves have explained this upsurge as a product of home buyers having more confidence in the aftermath of the December General Election, with the result giving buyers more political clarity, if nothing else.

By this reasoning, Glenigan has identified the demand for housing to be the current inhibitor to the sector’s growth, as opposed to the supply, but now that a majority Conservative Government has been consolidated it is presumed that political stagnation will no longer take place and therefore the demand for housing will balance out with the supply by the year 2021.

In contrast to the private housing sector, social housing is expected to waver over the coming years, with the value of underlying project starts set to increase by a figure of six per cent by the end of 2019 but, by the end of 2020, this growth will falter and decline by four per cent before jumping up once again by a proportion of nine per cent.

Following in the predictions of Glenigan this dip in sector growth by the end of 2020 can be attributed an apparent decline in student accommodation contracts that have been signed by the end of this year, 2019, meaning that the number of projects that will remain underlying by the end of 2020 will be significantly less than usual and so also will be the value of the sector.

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