Overall the figures support recent broker suggestions that the development finance sector could be set to boom as property developers continue to invest and build new homes.
The Office of National Statistics (ONS) figures up to November show continued growth in the sector as output in the September to November period was up 1.2% compared to the previous three months.
“The majority of other sectors were broadly flat in November 2017, with only private housing providing a positive contribution to growth, increasing by £100m; representing the fifth consecutive period of growth in this sector,” the ONS noted.
Public sector house building also rose by almost 7% over the year, but saw a 1.6% dip compared to the previous three months.
The housing data was in contrast to results from the rest of the construction sector, which showed a 2% slump compared to the same period last year.
Naismiths managing director Blane Perrotton noted that while the housing figures were positive the rest of the construction sector was seeing significant concerns. However, he was upbeat about the continued growth in property development.
“The seemingly irrepressible buoyancy of the residential sector suggests that the decline in industrial and infrastructure work is likely to be sentiment-led, rather than due to any fundamental weakness in the market,” he said.
“Housebuilders continue to bet on future demand from would-be homeowners, and on the front line we’re seeing very brisk residential activity – especially among developers converting office buildings into residential units.
“Not for nothing did last week’s PMI survey reveal that housebuilders have now clocked 16 consecutive months of rising output,” Perrotton added.