UK
Ireland
Scotland
London
Construction News
13/06/2011
House Building Down 31%
The underlying value of UK residential construction starts was 31% lower for the three months to May compared to the same period in 2010 according to new data from construction industry analyst Glenigan.
Private housing project starts were down 32% while social housing projects fell 28% for the reported period.
"The shrinking pool of new social housing work is in stark contrast to the rapid government funded growth seen this time last year, and further retrenchment is expected through the year," said Allan Wilen, Economics Director of Glenigan.
"The 14% drop in gross mortgage lending reported by the Council of Mortgage Lenders report and the 1.2% fall in house prices recorded by the Halifax paint a glum picture for the housing market that underlines the difficult trading condition faced by housebuilders. The fall in private housing project starts highlights developers' reluctance to open up new sites while conditions in the wider housing market remain weak, preferring to build out and secure sales on existing sites," continued Mr Wilen.
The North East and South East of England suffered 76% and 42% declines respectively for private housing development starts. London avoided a decline in private housing project starts reflecting the strength of the wider housing market in the capital.
However, Mr Wilen commented: "Although house prices and mortgage approvals are expected to remain weak near term, Glenigan is forecasting a modest uplift in project starts during the second half of this year as developers open up new sites in anticipation of a brightening in market conditions during 2012."
For construction as a whole, the value of projects starting on site in the three months to May was 21% lower than a year ago. The Glenigan Non-Residential Index for May is 21% down on a year ago; Government funding cuts have stemmed the flow of public sector projects while weak economic growth and uncertainty are curbing private sector investment. The underlying value of hotel & leisure starts halved during the three months to May, while office and industrial starts declined by 55% and 31% respectively. The only sectors to grow were retail, which was boosted by supermarket construction, and community & amenity.
(CD/KMcA)
Private housing project starts were down 32% while social housing projects fell 28% for the reported period.
"The shrinking pool of new social housing work is in stark contrast to the rapid government funded growth seen this time last year, and further retrenchment is expected through the year," said Allan Wilen, Economics Director of Glenigan.
"The 14% drop in gross mortgage lending reported by the Council of Mortgage Lenders report and the 1.2% fall in house prices recorded by the Halifax paint a glum picture for the housing market that underlines the difficult trading condition faced by housebuilders. The fall in private housing project starts highlights developers' reluctance to open up new sites while conditions in the wider housing market remain weak, preferring to build out and secure sales on existing sites," continued Mr Wilen.
-- Advertisement --
The North East and South East of England suffered 76% and 42% declines respectively for private housing development starts. London avoided a decline in private housing project starts reflecting the strength of the wider housing market in the capital.
However, Mr Wilen commented: "Although house prices and mortgage approvals are expected to remain weak near term, Glenigan is forecasting a modest uplift in project starts during the second half of this year as developers open up new sites in anticipation of a brightening in market conditions during 2012."
For construction as a whole, the value of projects starting on site in the three months to May was 21% lower than a year ago. The Glenigan Non-Residential Index for May is 21% down on a year ago; Government funding cuts have stemmed the flow of public sector projects while weak economic growth and uncertainty are curbing private sector investment. The underlying value of hotel & leisure starts halved during the three months to May, while office and industrial starts declined by 55% and 31% respectively. The only sectors to grow were retail, which was boosted by supermarket construction, and community & amenity.
(CD/KMcA)
Latest Construction News
17/01/2025
Leeds Trinity University has officially opened its newly refurbished City Campus at 1 Trevelyan Square in Leeds.
Completed by GRAHAM Interior Fit-Out, the transformation of the central Leeds site introduces state-of-the-art facilities designed to improve learning and collaborate with industry partn
17/01/2025
Trammell Crow Company (TCC) has secured planning permission for a Grade A logistics scheme in Heywood, Greater Manchester, following a successful planning appeal.
The development will feature two state-of-the-art industrial and logistics buildings. One building will house two units measuring 4,796
17/01/2025
Poole-based developer AJC Group has celebrated a record-breaking 2024, delivering 100 affordable homes, a significant increase from the 72 units completed in the previous year.
Since 2023, AJC Group has completed and handed over 172 affordable homes across five sites.
In 2024 alone, the developer
17/01/2025
Plans for one of the most ambitious parks projects in London have taken a significant step forward, with Haringey Council securing nearly two additional acres of land around The Paddock nature reserve in Tottenham Hale.
The agreement with Thames Water marks a major milestone in the transformation o
17/01/2025
Islington Council has unveiled two draft guidance documents aimed at helping residents, businesses, and developers combat climate change by making buildings more energy efficient and fostering a greener, healthier borough.
The consultation seeks feedback on the draft Climate Action Supplementary Pl
17/01/2025
The City of Wolverhampton Council has unveiled a £98 million investment plan over the next five years to develop around 500 new homes across the city.
The proposal, part of the Housing Revenue Account (HRA) Business Plan, received Cabinet approval this week and now moves to Full Council for final
17/01/2025
Croydon Council has announced a significant milestone in the redevelopment of the Purley Pool site, with revised proposals submitted for a new leisure centre, later living housing, and the regeneration of the surrounding area.
A planning application for the site was initially submitted in 2024, pro
17/01/2025
The City of Wolverhampton Council has announced that demolition work has commenced on the New Park Village estate, marking the start of a major £40 million redevelopment project to transform outdated council housing.
Contractor DSM Demolition has begun pulling down poor-quality bungalows on Valley
17/01/2025
Hillingdon Council has acquired 12 new homes at Carpenters Court in Uxbridge.
Leader of Hillingdon Council, Cllr Ian Edwards and Cllr Steve Tuckwell, Cabinet Member for Planning, Housing and Growth, visited the site to officially mark the handover of the properties from local developer Kearns Devel
17/01/2025
Organisers of UK Construction Week (UKCW) have announced another major coup for the show's 10th anniversary year, with the news that UKCW London will be co-locating with the 14th edition of The Stone Show & Hard Surfaces, the principal industry event for surface design.
Established 26 years ago, th
