Housing construction in overdrive
5th August 2014

Commenting on the Markit/CIPS UK Construction PMI figures, released yesterday(Monday) which report the sharpest rise in housing construction since November 2003, KPMG’s UK Head of Infrastructure, Building and Construction, Richard Threlfall said:
 
“Today’s figures show that construction market activity is going up a gear, with residential activity in overdrive. The increase in housing construction is an interesting case study in the delayed response of the market to Government initiatives, with activity picking up just at the point that Government has started taking steps to cool the market ignited via Help to Buy.
 
“Record levels of job creation is welcome news, but it’s no surprise given the high levels of construction market activity.
 
“New contracts are increasingly being farmed out at cost plus rates to offer some relief to main contractors who are still suffering from legacy commitments. It’s good to see more subcontractor capacity coming into the market, but another month of near – record level subcontractor rate increases indicates that there is still a substantial shortage of supply.”ased each month since May 2013, which respondents linked in July to greater confidence among clients.