Housebuilding dips to 2015 low
9th June 2015

Residential building reached a low-point for 2015 in May, with new contracts falling to 8,175, almost to half the January peak but this is seen as a short-term lull in a generally more optimistic medium term.

The figure, from Barbour ABI, is set against the latest Glenigan report (The Glazine, last week) showing a year on year peak for May – the only construction sector to show any growth – but in context of an even more sluggish May ’14.

Barbour says the construction industry is not likely to be fazed by the May figure as early indications show that construction had a strong start in 2015 with contracts awarded to build 49,7067 units in the first four months, as against 33,757 in the same period last year.

Michael Dall, lead economist at Barbour ABI, said: “With much uncertainty looming around the general election last month and a hung parliament looking like the probable outcome, it seems likely that investors and housebuilders decided to wait for the outcome of the election before coming to a decision on significant housebuilding projects.”
“With the election now in the distant past, and the expansion of initiatives to support first time buyers, I expect house building to bounce back in June and have a strong second half of the year.”

www.barbour-abi.com