Private housing projects boost construction
Published by 24publishing for 24dash.com in Housing and also in Communities, Local Government
Private housing projects boosts construction
Huge growth in private housing projects has boosted construction growth, according to analysts.
Glenigan’s index of project starts in the construction industry revealed that the 1% deterioration in total underlying activity would have been far worse had it not been for the 58% increase in private housing projects nationally compared to the three months to October 2011.
However, the slowdown in public sector new work also continued in October with social housing starts down 6%, education starts down 30%, health starts down 32%.
The new private sector projects, says Glenigan, have been mainly concentrated in the South East and London over the past quarter; however Scotland also saw a large increase in new work especially in October.
Glenigan Economist Andrew Whiffin said: "Private housing has once again been the sector that's stood out from the rest of the industry in a climate where growth is increasingly difficult to find.
"We believe that the growth in new projects we have seen over the last few months is down to house builders gearing up in anticipation of renewed housing market activity next year."
Whiffin added: "Recent data suggest credit conditions for individual borrowers are improving in a sign that the Bank's Funding for Lending Scheme is beginning to have some positive impact. If mortgage lending picks up going into 2013 construction activity in the sector should continue to improve."
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