Project starts delayed
Construction starts in the three months to November were 4% down on a year ago and 7% lower than during the preceding three months, according to the latest Glenigan Index.
Specifically: residential starts were 12% lower than a year ago, and 8% down on the preceding three months; non-residential project starts were 7% higher than a year ago with growth driven by increases in industrial, retail, hotel and leisure and health starts; and civil engineering was 13% lower than a year ago, and 21% down on the preceding three months.
The value of work starting on site in the three months to October was 4% lower than a year ago, and on a seasonally adjusted basis, starts were 7% down on the three months to August.
Allan Wilén, Glenigan’s economics director, said: “Quieter conditions in the wider housing market appear to be restraining private housing project starts, with developers focusing more on building out existing sites. Private residential starts during the three months to November were 15% down on the same period a year ago.
“On a seasonally adjusted basis starts were 13% down on the three months to August. While current political and economic uncertainties are expected to delay project starts in the near term, the recent extension of Help to Buy to 2023 will help support project starts over the coming year. Social housing starts have recovered, rising by 14% against the three months to August to match the levels seen a year ago.”
Regionally, growth in project starts was confined to the east of England, West Midlands and Yorkshire and the Humber, which saw increases of 31%, 42% and 25% respectively against a year ago. Starts in the north east and the south east were little changed on a year ago. Other parts of the UK all saw a double digit decline in project starts.