Housebuilding- leading sector in construction despite Brexit!
The housebuilding sector has been the main component of growth in the UK across 2016, despite the Brexit vote where many housebuilder’s share prices fell in excess of 20%. However this did not dampen activity with both current and future pipelines, and housebuilding successfully contributed £24.6bn to a total value of contracts of £70bn in 2016. This indicates an 11% rise year on year despite a 5% overall drop for the market as a whole.
Planning activity also increased in housebuilding, with a total value of projects reaching an advanced planning stage of £49.8 bn, which saw an increase of 19.2% from the value in 2015. Indeed infrastructure cannot be overlooked with a reported nine out of ten of the biggest projects across all of construction coming from this sector.
Overall for 2016 the output for the above remained healthy, however contract award values did decline and with important political decisions likely to come up in 2017, these could have implications on construction activity, more so in the commercial sector.
In July of last year, housebuilding was up by a significant 5.6% when compared to the previous year. The demand for new homes continued to rise in 2016 with the second quarter showing an increase of 25% compared to 2015. This meant that by the end of June, the construction sector was in fact seeing its fastest ever increase since 1967.
One of the biggest contributors to the succession of the housing sector is indeed the private sector, with both residents and landlords helping to keep the demand high so that it over runs the public sector in terms of new house builds.
Here at Yorkshire Development Finance we have the expertise to successfully assist with funding development schemes of all sizes. So please speak to our friendly team today and we would be delighted to raise finance for your needs.