Construction output rises 1.1% in three months to November: ONS - Mortgage Strategy

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Construction output increased by 1.1 per cent in the three months to November, according to research conducted by the Office for National Statistics.

The firm attributes the rise to 1.6 per cent of growth in new work, and 0.2 per cent in repair and maintenance.

The increase in new work was driven by infrastructure and private commercial, which grew by 3.0 per cent and 1.8 per cent, respectively.

Looking at repair and maintenance, the data shows that the growth was due to a 1.2 per cent increase in non-housing repair and maintenance, with public housing repair and maintenance rising by 2.5 per cent.

On a monthly basis, construction output rose by 1.9 per cent, which was accountable to 2.4 per cent of growth in new work, and a 0.9 per cent rise in repair and maintenance.

Federation of Master Builders chief executive Brian Berry says: “While 2019 was a year marked by political and economic uncertainty, there does seem to be some small signs of hope for the construction industry, with the largest monthly growth in the industry seen in November since the start of the year.

“It is too soon to tell whether this will be a longer-term trend, as some sectors such as private house building and repair and maintenance continue to see sluggish growth.

“The upcoming budget provides the perfect opportunity for the government to help ensure this positive trend at the end of 2019 continues into the new decade. In order to help boost the industry, the chancellor should prioritise cutting VAT on home improvement works, so that tax is not a barrier to homeowners upgrading the energy efficiency of their properties.

The government should also use the budget as an opportunity invest in construction skills to help build the homes and infrastructure we need and invest in planning departments to ensure the planning system doesn’t act as a blockage to the government’s ambitious housing targets.”

Spicerhaart Part-Exchange & Assisted Move business development director Neil Knight adds: “The figures released before Christmas suggested that construction was flattening off in the private sector. While the latest data are an improvement on last month, overall volumes are similar to the same time last year.

“As a result of last month’s general election, there is now much greater political certainty. We are already seeing a strong start to the year, and we would expect to see confidence returning to the market throughout 2020.

“It is not just about confidence, now that we have a government with a stable majority, it would be good to see some evidence of a long-term strategy to tackle some of the problems in the housing sector.”


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