House building starts to bounce back
– nearly half of all construction
– over three times commercial
24th November 2015
Home building in the UK has begun to show a welcome upturn, with a record £3.7billion contract value in October representing nearly half (49%) of all construction.
The figures, in the latest Economic & Construction Market Review from industry analyst Barbour ABI, also show the increase puts residential construction at more than three times the value of commercial and retail put together (15%).
Overall for October, the value of residential projects is the highest since Barbour ABI started tracking the series, helped significantly by a number of projects within private housing, which accounted for 81% of all residential contract values.
Major construction projects in October that fuelled the residential revival were spread right across the United Kingdom, from the City North Development in London’s Finsbury Park valued at £120 million, to the Oakfield Road project in Altrincham that is set to deliver 59 apartments with a total construction value of £70 million.
Barbour ABI lead economist Michael Dall, said of the figures: “After a slower Q3 for construction activity it was vital for the industry as a whole that residential bounced back to help regain momentum. It was also encouraging to see the spread of contract values right across the UK, with no region dominating.
“Although the residential contract value figure increased in October, the number of units awarded increased by only 2.8%, suggesting that recent schemes are more focused on high value rather than high density, which does not necessarily bode well for those calling to increase housing figures. However, October’s total residential value was the highest for over three years and dominated by private housing, which has to be seen as a positive for the industry, economy and investors.”
www.barbour-abi.com
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