DAVY VIEW

Today’s result for Q1 housing output is encouraging. We expect the strong double-digit increase of 33% is likely to imply upgrades to the consensus outlook for housing delivery this year. While our latest forecast from December for Q1 was for an even stronger increase, we recently flagged downside risks due to record heavy rainfall for Dublin in February. Our forecast for 43k new homes this year remains achievable since we had not expected house completions would be as significant as now seems likely.