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 

Ctrl + Enter

Most Read

How Blockchain Technology is changing the Energy Sector

How Blockchain Technology is changing the Energy Sector

The disruptive potential of blockchain technology is becoming more evident with every passing day. From the proliferation of cryptocurrencies, and its increasing applications in other areas including banking, gaming, music licensing, as well as the energy sector, blockchain technology is

How to deal with interview rejection

How to deal with interview rejection

Sorry we think you’re not the ideal fit for this position or sorry to inform you, but you are not exactly the candidate we were hoping for – these are some of the replies you may get from an unsuccessful interview, and while it can sting for a day or two, you should not dwell on it any

Mirroring England’s Young World Cup Team in Engineering

Mirroring England’s Young World Cup Team in Engineering

Alas, the cup didn’t come home. However, it's wasn't all doom and gloom as 4th placed England at the just concluded FIFA World Cup in Russia, were not initially expected to perform wonders. However, in the course of the tournament, the belief grew, and hopes were raised. Gareth

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.