According to a report published by the Construction Products Association, construction output is forecast to grow 4.7% in 2014 and a further 4.8% in 2015, providing an additional £11 billion of activity to the UK economy in just two years.
The primary driver of growth in construction during 2013 was the £17.1 billion private housing sector. It is also the sector that has received the most effective intervention from policy makers. The direct impact of Help to Buy part one has been muted but the indirect impact on the housing market has been considerable.
Effective demand rose, through rises in mortgage lending, and private starts in Britain rose by 21.0% in 2013. Further growth of 18.0% in private starts is anticipated in 2014 with 10.0% growth in 2015 before post-election uncertainty regarding the future of Help to Buy Part One is reflected in more subdued growth.
Key Points Include:
- Construction output to grow 4.7% in 2014 and 4.8% in 2015
- Private housing starts to rise 18.0% in 2014 and 10.0% in 2015
- Commercial offices output to grow 10.0% in 2014 and 8.0% in 2015
- Industrial warehouses construction to rise 20.0% in 2014 and 10.0% in 2015
- Education construction to rise 2.2% in 2014 after three years of consecutive falls
- Health construction to fall, the sixth consecutive year of falls, due to lack of PFI work