Private housing work to increase by a fifth
The number of private houses beginning construction will soar by a fifth this year, according to the Construction Products Association
Economists from the CPA forecast an 18 per cent hike in housing starts in the private sector in 2014.
General economic growth will increase demand for housing, it believes, with the government’s Help to Buy initiative allowing the demand to flow through to homebuilders.
Help to Buy, which offers loans and guarantees to allow people to purchase homes with deposits as low as 5 per cent of the asking price, has reinvigorated the housing sector.
The value of construction of offices is expected to rise 7 per cent this year, with public sector building up just 0.7 per cent.
Overall, construction output is expected to grow 4.5 per cent in 2014, following a 1.1 per cent increase last year.
‘In the near-term, construction activity is anticipated to be driven by private housing, private commercial and infrastructure, focused around Greater London,’ said the report.
‘In the longer-term, growth in these sectors is projected to be augmented by a recovery in government capital investment, consequently leading to rises in public sector construction.’