You are here: Home - News -

New build housing the bright spot of troubled UK construction sector

by:
  • 11/04/2018
  • 0
New build housing the bright spot of troubled UK construction sector
Private house building output grew by £232m in February but the slump within the UK construction sector deepened, according to official statistics.

 

A quarter of all construction work in February was for private new builds, which marked a 1.5% rise on January, and a 7.6% rise on February 2017.

However, overall construction output fell 3.0% in February compared to the same month in 2017 – the biggest annual fall since March 2013, the Office for National Statistics (ONS) reported.

And on the three-month rolling measure it fell 0.8% in December 2017 to February 2018 compared to the previous three months, the fourth consecutive decline.

Private housing and infrastructure development were the only elements of the sector to provide positive contributions – with infrastructure accounting for a £60m increase over the three months. (Click graph to expand.)

The ONS suggested the bad weather could have potentially contributed to the decline in construction output, but added that it was difficult to quantify the exact impact on the industry.

 

New-build-ONS-construction-110418

 

Fewer bright spots

Naismiths managing director Blane Perrotton was sceptical of this argument, noting that only so much of February’s slowdown can be explained away by the icy weather.

“The bright spots are getting fewer and further between. Housebuilders continue to shine as low interest rates and a chronic shortage of homes keep demand burning bright,” he said.

“Infrastructure too offers some hope, with London’s three flagship projects – the Thames Tideway Tunnel, Heathrow Q6 and Crossrail – together committing to more than £1.7bn of capital expenditure in 2018-19.

“But these strong points are increasingly looking like outliers, as commercial property demand cools and developers concentrate on completing existing projects rather than commissioning new ones,” he added.

Spicerhaart part exchange and assisted move business development director Neil Knight noted that the government’s focus on new housing was starting to pay dividends.

“While we are nowhere near producing the level of new housing we need to keep up with demand, we are moving in the right direction. I just hope that this trend continues,” he added.

There are 0 Comment(s)

Comments are closed.

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
prison bars
Letting agent fraudster ordered to hand over £22k in compensation

A letting agent who skimmed cash from tenants and landlords has been given a month to pay back £22,000 in...

Close