Construction to grow 10% in two years

Private Housing will be one of the main drivers for construction growth. Photo courtesy of David Holt London
Private Housing will be one of the main drivers for construction growth. Photo courtesy of David Holt London

The construction industry will grow by about 10% and contribute nearly £11Bn to the UK economy over the next two years according to the Construction Products Association’s latest Summer Forecasts.

 

The association predicts that construction output will increase 4.7% in 2014 and 4.8% in 2015, while total construction output is set to rise 22.2% over the next five years. Forecasts suggest that activity in the sector will be led by private housing, infrastructure and commercial in the short term.

 

Commercial, it is predicted, will have the greatest influence on the overall outlook for the construction industry and should contribute 23.4% growth over the forecast horizon to 2018. The association said the offices sub sector is the primary driver in commercial with output forecasted to grow by 10% in 2014 and 8% in 2015.

 

The association also anticipates a rise in private housing starts of 18.0% in 2014 and 10.0% in 2015, with infrastructure output across all key sub sectors set to increase by 9.2% in 2014 and 7.0% in 2015.

 

Economics Director of the Association Dr Noble Francis said: “The private housing sector continues to benefit from the improving economic backdrop and government policy measures.

 

“The pending general election, however, will cast the future of housing policies into doubt,” he added.

 

Longer term, the association said growth could be boosted by construction work on schools and hospitals.

 

Dr Francis said: “The Forecasts reflect the increasing strength of the sector, though risks remain. We anticipate the recovery will continue through the forecast horizon in 2018 and broaden both across sectors and regions.

 

But, he continued: “Concerns regarding house price inflation may lead to the imposition of lending constraints. This, combined with interest rate rises, may have an adverse impact upon effective demand, and consequently, house building.”

 

Photo Licence: https://creativecommons.org/licenses/by-sa/2.0/

Please rate

Comments 

Name
Email
  Ctrl + Enter

Most Read

Network Rail tenders £1.7bn minor works contract

Network Rail tenders £1.7bn minor works contract

Network Rail Southern Region is seeking 16 contractors for a new minor works framework.   The minor works buildings and civils framework (MWF-B&C) is divided into nine lots for unplanned, planned and cyclical maintenance works.   The £1.7bn framework is designed to align

Contractor signed for the construction of a £9m new Trent bridge

Contractor signed for the construction of a £9m new Trent bridge

A bridge is being built to connect pedestrians and cyclists in the Lady Bay area south of the river with the Trent Basin waterside housing estate on the north side of the river, close to Nottingham city centre.   It will be the first new crossing of the Trent in the city for 65 years.

Women in Rail Conference marks end of 10th anniversary celebrations

Women in Rail Conference marks end of 10th anniversary celebrations

Women in Rail (WR) marked the end of its 10th anniversary celebrations with its annual Conference on Thursday 2nd March 2023.   The hybrid event, hosted by London law firm Stephenson Harwood, brought together 120 in-person attendees and a virtual audience of almost 100. Tickets had sold out

This website uses cookies to enhance your user experience. By continuing to use this site, you consent to our use of these cookies. See our Cookie Policy.