August 19, 2014

House building grows at fastest rate in 11 years

UK house building is “racing ahead” with the fastest growth in home construction for more than a decade.

The latest Markit/CIPS Construction Purchasing Managers’ Index (PMI), published on 4 August, found that July had seen the steepest rise in residential building activity since November 2003.

Other positive signs for the construction sector include an increase in new orders, continuing a trend that began in May 2013, and the fastest rate of job creation across the sector since the survey began in April 1997.

Some respondents reported that they were increasing staffing levels in response to concerns about sub-contractor availability, which shrank for the 13th month running.

David Noble, group chief executive for CIPS (the Chartered Institute of Purchasing and Supply) said: “The house building sector is racing ahead this quarter, with the fastest growth in the construction of homes for over a decade.

“The commercial and civil engineering sectors also pulled their weight with continued growth, to deliver one of the fastest overall increases in output since 2007.

“In the short term at least, the outlook for the coming quarter is strong with the level of new orders continuing to rise and confidence for the year ahead growing steadily since June.”

An increasing number of indicators, like the Markit/CIPS Construction PMI, suggest that UK construction is experiencing real growth.

Having access to professional advisors experienced in construction issues can be a real advantage for businesses in the sector.

At Palmers Solicitors, we can provide comprehensive advice and guidance to construction companies on all aspects of construction law, including advising on and drafting contracts for new work, applications for payments and liquidated and ascertained damages. We can also advise on construction procurement related issues. For more information, please contact Adam Davis.