UK residential building enjoys strong February
HOUSING construction ballooned over the 12 months to February, up by nearly three quarters from the same month last year, and surging back towards pre-crisis levels.
According to Barbour ABI, a firm that provides data on the construction sector, house building is the runaway success story of the last year. Though all construction work has climbed, housing is particularly robust.
The contracts awarded in February were worth £1.83bn for house building, up 72 per cent from the same month in 2013. Nearly a fifth of British home construction is accounted for by London, and a further 20 per cent is made up by the south east and south central regions of England.
Barbour ABI’s lead economist Michael Dall credited the Help to Buy schemes with the boost in building, but added: “There are still concerns that these prolonged initiatives will drive up house prices and make homes in some places, particularly London, unaffordable for first-time buyers looking to get their foot on the property ladder.”
A second report released by estate agents Barnard Marcus today says that rental demand in the capital has surged by 26 per cent in the past year, while monthly rents have stayed much more muted, rising by only two per cent over the same period.
“With demand rising at exceptional levels already this year, it is vitally important that the supply of properties to rent remains strong, otherwise we might see the same affordability challenges which are occurring in the sales market,” concluded Stephen Nation, head of lettings at Barnard Marcus.