UK housebuilding highest in decade
It was stated that housing activity is now the best performing construction category, with anecdotal evidence citing a resurgent demand for housing projects.
The report read: “Housing activity remained by far the best performing construction category, with the latest rise in output the sharpest for over a decade.”
UK construction as a whole, including house building, continued to flourish in July, standing at 62.4, down from 62.6 in June. Readings above 50 denote growing activity.
David Noble, group chief executive officer at the Chartered Institute of Purchasing and Supply, said: “The house building sector is racing ahead this quarter with the fastest growth in construction of homes for over a decade.
“The industry as a whole continued its impressive growth, dipping slightly from last month’s high.
“The boom in house building also encouraged the fastest acceleration in employment the index has ever seen over its 17 year history.”
Charles Haresnape, Aldermore managing director for mortgages and commercial lending, cited Help to Buy as the primary factor for the growth of property construction.
He said: “Help to Buy is having a significant impact in helping consumers get on the housing ladder and in boosting the construction sector as demand increases as a result.
“Crucially, Aldermore’s data clearly shows the largest uptake for the scheme has been outside of the South East, so the economic impact of this increased demand will be felt right across the country.
“The construction industry is a vital part of the UK economy and the rise in house building demonstrates the availability of finance for those looking to develop new property.
“Low levels of house building since the recession has increased pressure on the housing supply so today’s news of increased construction is extremely positive and will help stabilise house prices.”
Tim Moore, senior economist at Markit, stated that confidence amongst construction firms is on the rise.
He said: “July’s figures suggest the UK construction sector is enjoying its strongest cyclical upswing since the global financial crisis, while a new record rise in employment highlights that construction firms are increasingly confident about the sustainability of the upturn.”