Building industry analyst Glenigan has forecast a 7.3 per cent increase in the number of construction starts for the coming year - a boom driven by a burgeoning commercial sector
The organistation, which tracks all UK building projects from planning to completion,said a 23 per cent increase in office construction would ‘dominate’ growth over the next year, offsetting predicted dips in healthcare and social housing work.
Glenigan’s Construction Prospects for 2015 report said scheme starts will have risen 8 per cent during 2014 compared to the year before, buoyed by an uplift in private residential and commercial work.
Economics director Allan Wilén said the UK construction sector’s forward pipeline pointed to sustained output growth during 2015.
‘The pre-construction pipeline remains firm, with strong growth in private housing approvals in particular, offsetting weakness in public sector areas,’ he said.
‘Renewed consumer confidence and the accompanying revival in the general housing market have emerged as key growth drivers for both construction activity and the wider economy.
‘However, Prime Minister David Cameron’s economic warnings at the G20 Summit this week underline the importance of continuing to foster private sector confidence to safeguard future economic and industry growth.’
Glenigan said the pick-up in office starts would not be limited to London, but would cover major metropolitan areas, while retail and leisure project growth was also forecast to be spread widely across the UK as consumer spending gained momentum.
In particular, it predicted strong regional growth for the West Midlands, and added that Scotland was expected to bounce back as projects deferred in the runup to the independence referendum vote got under way.