Public sector keeps housing market from ruin
Public housing and housing association orders leapt by 20 per cent in the three months to June, according to the Office for National Statistics
‘These positive figures demonstrate the success of the Homes and Communities Agency’s intervention in the housing market’, Bruce Mew of Grant Thornton told Planning Resource.
‘While the private sector has mothballed schemes due to the lack of mortgage availability, the public sector has done well to step into this void and make a positive impact.
‘Infrastructure is vital to the delivery of major projects. The rise in private and public infrastructure construction orders highlights the success of the government’s strategy to pre-fund infrastructure initiatives and in some cases, take an equity stake in the project to secure a return, ranking equally with that in the private sector.’
Meanwhile the Construction Products Association (CPA) reported that the rate at which the construction industry is contracting slowed in the second quarter of the year, but warned of a ‘gloomy’ period ahead.
Contractors, manufacturers and specialists all reported further falls in activity over the three months to June, with the CPA reporting that public sector construction was not at high enough levels to offset falling private workloads. Two thirds of building contractors reported falls in tender prices in the second quarter, while 63 per cent reported a fall in profit margins.