More homes built – but less value
June 2016

The number of new homes planned was up 14% in May despite an overall 17% drop in contract value, indicating a strong swing towards construction of affordable homes, according to the latest Economic & Construction Market Review from industry analyst Barbour ABI.

Contracts awarded within the whole construction industry held strong during May, with £6.1 billion worth of contracts awarded and no change from the previous month, along with an 8 per cent increase year on year, according to
The top performer, after infrastructure, was commercial & retail, which increased its monthly market value by 24 per cent to £877 million.

Michael Dall, lead economist at Barbour ABI (Speaking before the Referendum vote) said: “What is telling is the increase of contract values in May from the infrastructure and commercial & retail sectors, both traditional construction benchmarks that when performing well, give a solid indication that the industry as a whole is moving positively.”

He also added “However if Brexit does take place this is likely to cause a significant change in outlook at least in the short term with the likelihood of a reduction in activity.”