The value of residential construction contracts awarded in the UK has grown by more than 90% in the last 12 months, according to a report released today.
The construction industry overall saw growth of 6.8% from October to November 2013, with a 56.5% increase on the value recorded in November 2012.
These latest figures, taken from Barbour ABI’s Economic and Construction Market Review, also highlight marked growth in the UK’s infrastructure construction sector, which grew by 16.2% last month compared to October 2013.
Michael Dall, lead economist at Barbour ABI, said: “The figures show an indication of significant upturn in construction activity in the UK. It’s unsurprising that the residential sector is leading the way, and the substantial 92% rise in value and 70% rise in number of contracts on last year is telling of the sharp rise in activity the sector has experienced over the last 12 months, boosted by the government’s Help to Buy initiative and renewed confidence from the major housebuilders.
“In addition to the healthy figures from the residential sector, which accounted for 27% of the total value of construction projects awarded in November, Barbour ABI data showed that the infrastructure sector had a strong month – accounting for 37% of projects awarded for the month. This is largely attributable to two large Siemens projects to develop gas fired power plants in Spalding, Essex and Coryton, East Midlands. Infrastructure is a major contributor to construction so this is good news for future growth of the industry.
“It is our view that the near term outlook for the UK economy has improved but there are still underlying weaknesses, such as worker productivity and low levels of business investment which will continue to prove a drag on the scale and durability of economic growth in the coming years. As we head into 2014, these areas will need to be closely watched as they will have a major impact on the economic growth potential for the UK.”