Growth forecasted for construction despite public housing slowdown
Source: H & V News
Construction output is forecast to increase 13.2% by 2017 and private house building is expected to be a key driver of this growth, according to the latest forecasts from the Construction Products Association.
A sharp fall in public housing, however, is expected to hinder short-term growth whilst significant investment in building a skilled workforce will be needed to support construction in the medium-term.
Construction Products Association economics director Dr Noble Francis commented: “Construction output is forecast to increase 4.9% in 2015 – almost double the rate of growth for the UK economy as a whole – and 21.7% overall by 2019. This growth will mainly be driven by an increase in work across the private housing and infrastructure sectors.
“Private house building is forecast to rise 9.0% in 2015 and 5.5% in 2016 as it benefits from a strong property market supported by rising real wages, increased mortgage availability and government policies such as Help to Buy.
“However, public house building activity is expected to fall sharply – 10% in 2015 and 5.0% in 2016 – due to the negative impact of cuts to social rents and the extension of Right to Buy on housing association funding.”