Categories: Editors Comment

An optimistic rapid recovery?

Richard Evans writing in the Telegraph yesterday gave hope for an optimistic rapid recovery in the construction sector. Reporting on comments made by fund manager Barry Norris, he shared the view that ‘the economy will enjoy a ‘V-shaped’ recovery and house prices and property transactions will come roaring back.’ Barry Norris himself stated: ‘The collapse in house prices won’t last – as soon as the economy normalises there will be a boom in housebuilding and property transactions.’

There is a structural imbalance in the housing market and this won’t disappear. There are still more people who want to buy a house than there are homes being built. Barry added: ‘I don’t expect a credit crisis – the damage from coronavirus will be felt most keenly in sectors such as travel and hospitality. As soon as we get the all-clear to go back to work the economy will return to where it was before or perhaps even stronger. The housing market may be dead for two months but as soon as the economy normalises there will be a boom in transactions.” As we all know, more housing transactions and more house building equals more windows and doors.

John CowieEditor Window Active Magazine

06.04.20

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