Growth in the UK construction industry continues to be driven by house building in the capital, according to Barbour Index.
Overall construction activity rose by 59.3% last month, with house building now accounting for more than a third of all UK contracts awarded by value.
The residential sector continued to show significant growth in January, with the total value of projects awarded reaching £1.87 billion, a 2% increase from December and a significant 87.7% higher than the corresponding month last year.
The importance of London was highlighted with 36% per cent of all residential contracts awarded in the capital, with key projects including the £180 million Clarges Estate redevelopment in Mayfair, 500 new housing units at Granville Road worth £140 million and the previously named Oakmayne Plaza and Tribeca Square £128 million residential scheme in Southwark.
These latest figures, taken from Barbour ABI’s Economic & Construction Market Review, highlight sustained growth in the residential construction sector, which continues to be boosted by initiatives such as the government’s Help to Buy scheme. This is also backed up by recent Office of National Statistics (ONS) Construction Output figures and positive news from developers such as Bovis Homes and Taylor Wimpey, that have reported strong trading updates.
On the findings of the report, Michael Dall, lead economist at Barbour ABI, commented: “Residential construction has been a major factor in the growth of the UK construction industry over the past year, so it’s no surprise to see that the sector now accounts for more than a third of all contracts awarded.”
- The total value of UK construction contracts awarded in January was £5.6 billion based on a three-month rolling average, a 36.5% increase on the value recorded in January 2013.
- The number of construction projects within the UK in January was up 59.3% on December and 19.6% on January 2013.
- Residential had the highest proportion of contracts awarded by value in January with 36% of the UK total.
- The majority of the contracts awarded in January by value were in London, which accounted for 29% of the UK total.
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