Newbuilds benefit from more private housing
Published: 25 November, 2009
UK: The latest Glenigan Index has been boosted by an improved flow of private housing projects starting on site in recent months.
The strength of the turnaround in the private housing sector, combined with increases in public sector and civil engineering work, limited the year-on-year fall in the Index for October to just 4% and has prompted an upward revision to the Index for August and September.
This is in contrast to the sharp falls in project starts seen during the first half of the year.
Poor private sector activity, including a renewed weakening in private housing projects, is forecast to dampen construction starts near term, the flow of new work is forecast to improve during 2010.
The strengthening in public sector building and civil engineering projects has provided a particular boost to the construction industry in Scotland and Wales, while the East Midlands and the South West and the North West of England have particularly benefited from the rise in private housing schemes starting on site during the three months to October.
While developers continue to prioritise completing and securing sales at existing sites, the increased flow of new project starts reflects housebuilders' growing confidence that market conditions will improve during 2010.
The steadier performance by the private housing sector, combined with continued strength in social housing starts as promised government funding has fed through, secured a 14% rise in the Residential Index for October.