Leap in growth predicted in coming years
Total construction output is set to grow by an estimated 30% by 2018, taking the industry up to an expected value of around £158bn, new figure suggest.
The Construction and Housing Forecast, released by AMA Research on a quarterly basis, has predicted that following a 4% increase in 2013 from the year before, 2014 will increase by a further 6%, taking construction output to just under £129bn. This growth is expected to continue into the medium-term, with annual growth rates of 5-6% forecast over the next four years.
According to the forecast, this performance will be underpinned by the resurgent residential sector, with new work output forecast to have completed an increase of 36% by 2015 from 2013. AMA predict that this will continue with annual increases of 8-9% to 2018.
Andrew Hartley, director of AMA Research, said: "Finally there are some genuine indications of recovery within the construction market. The residential sector in particular is experiencing strong growth at the moment, driven by increased mortgage lending rates and an upward trend in new house prices."
Housing starts and completions are also forecast to experience growth as a result of continuing government schemes like Help to Buy, which is said to have improved consumer confidence and driven demand for new homes. Completions are forecast to achieve 200,000 by 2017 – a figure which the opposition Labour party have long claimed is needed now to meet the minimum requirements of the housing market.
Estimates for the non-residential construction sector are also positive, with annual growth rates of 4-5% currently forecast to 2018 when output is predicted to reach around £64.6bn.
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