Cautious optimism for the residential sector

Glenigan, a Construction industry information provider have undertaken a Construction review for June, revealing grounds for “cautious optimism” for the sector. Private Housing output has grown by 3% compared to the last three months, whilst social housing has also grown by 10% but was 16% lower than a year ago.

In terms of residential starts from March to May, they were 67% higher than the previous year, but 24% lower than the results in 2019. Underlying starts (projects less than £100 million) were similar to 2019, at only 5% lower, whilst Main contracts awards saw an increase of 71% and planning approvals rised by 27%, both of which were higher than the same period in 2019.

Commenting on these findings, Glenigan’s economic director, Allan Wilen said: “Encouragingly, further growth is expected with both main contract awards and detailed planning approvals strong. However, supply and cost of materials may dampen the pace of growth for housebuilders and the wider sector. Further progress will be needed over the summer to bring construction activity back to pre-pandemic levels.”