Housing back in decline
November 2017

UK housebuilding is back in decline after a strong summer, with figures decreasing by 10 per cent and falling for the second month in a row, according to the latest edition of the Economic & Construction Market Review from industry analyst Barbour ABI.

Across the industry, project numbers were down in October by almost 10 per cent when compared to the same time last year, indicating that a number of larger projects were awarded within the month rather than a large succession of smaller contracts. It was a mixed bag for various sectors this month with industrial and medical & health construction joining housing as sectors that saw a drop in contract value, at 16.2 and 9.9 per cent respectively.

Regionally, London took back the top spot with 25% of the total construction contract value from the West Midlands, which benefited greatly in September thanks to the HS2 contracts. Joint second was the South East which contributed 14 per cent, which included the £40 million McArthurGlen Retail Outlet in Kent, alongside the North West which had the biggest residential project in October, the aforementioned Portugal Street project in Manchester.

Michael Dall, Lead Economist at Barbour ABI, said: “It’s evident that the major HS2 projects commissioned in September are masking an underlying softening of activity in certain sectors of construction such as housebuilding. Housing has been driving overall industry growth across 2016 and parts of 2017 as infrastructure lagged behind but is now flagging. 

Without the HS2 developments we would be looking at a much bleaker picture in our results for October.”

www.barbour-abi.com