Housebuilding surge slows to weakest growth in 18 months

Tim Wallace
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Construction growth slowed again in December, an influential private sector survey showed yesterday, as the boom in house building cooled a touch.

The sector is still growing rapidly – Markit’s purchasing managers’ index (PMI) came in at 57.6, well above the 50-mark which shows growth, and firmly above the long-term trend rate of 54.5.

But it does represent the third consecutive monthly fall, and is down from 59.4 in November.

“House building activity remained the strongest performing subcategory, although the pace of expansion moderated to its least marked since June 2013,” said Markit’s report.

The data comes after a report from London First and the London Enterprise Panel called for housebuilding in the capital to be doubled from below 30,000 per year currently to more than 50,000 per year. Without more building the groups, backed by Boris Johnson, fear house prices will push vital UK and foreign workers out of London.

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