House building continues to recover
In the third quarter of this year 41% percent of surveyors reported a rise in privately-funded housing projects. That was up from 31% in the second quarter and the highest since the survey began in 1998.
Simon Rubinsohn, RICS chief economist, said: “While it’s certainly good news that construction – and especially house building – is finally on the rise right across the UK, we are certainly not out of the woods yet.”
“Critically, we’re still way behind in terms of building enough homes to meet the nation’s growing housing need and overall construction projects are at a historical low.”
The survey also showed skill shortages and difficulties in sourcing building materials, highlighting the industry’s relatively slow response to demand.
Stephen Smith, director, housing and external affairs at Legal & General Network, said: “This is encouraging news, however there is still more to be done. With consumer confidence starting to return to the market, it’s crucial that more homes are built so that demand does not outstrip supply.
“Having a good stock of affordable housing is key to ensuring house prices don’t overheat and the market continues to grow in a sustainable manner.
“The figures from RICS show that a significant amount of this building work is being carried out by the private sector.
“The government and industry need to do all they can to support this in the coming months and years.”