DAVY VIEW

Further to this morning’s bumper Q2 data for new units granted planning permission – up by 60% – this afternoon brought August figures for housing starts. While a headline increase of 231% is flattered significantly by 2024 and 2025 data distortions due to subsidies, the 3.88k result last month was very impressive and up by 40% compared to August 2023. This represents a step-up in progress for housing activity. If sustained, the momentum could imply upside risk to our 42k forecast for 2028 housing delivery.