Monthly construction output is estimated to have decreased 0.4% in volume terms in July 2024; this follows an increase of 0.5% in June 2024. This is according to the latest ONS data.
The decrease in monthly output came from falls in both new work (0.2%) and repair and maintenance (0.7%).
At the sector level, total new housing fell from £4.63bn for June to £4.46bn for July with private new housing also down marginally for the month to £3.93bn from £3.99bn.
Over the quarter the picture is more positive, construction output is estimated to have grown by 1.2% in the three months to July 2024; this came from increases in both new work (1.6%), and repair and maintenance (0.8%); the increase in construction output in the three months to July 2024 came from increases in May 2024 (1.7%) and June 2024 (0.5%).
Commenting on the latest data Spicehaart divisional director Neil Knight said: “While a decline in output in July is disappointing, output across the last three months paints a more positive picture of growth. It just demonstrates the volatility that remains in construction and the challenges faced a number of its key sectors. This can be seen in the 0.2% drop in all new work.”
Knight pointed out that the figures don’t yet reflect the first cut to the bank base rate, which will help to relieve some of the borrowing pressures facing both house buyers and construction clients.
“We are hearing anecdotally from developers and from across our 200 estate agency branches that this is already helping to generate enquiries and encourage buyers to explore getting back into the market. Developers are continuing to respond and explore opportunities and incentives to not only encourage interest, but to make this process as simple as possible.”
Optimism in UK housebuilding
McBains, managing director of property and construction Clive Docwra said that after May and June’s figures showed an increase in output, the construction industry was expecting better news for July.
He stressed that although the figures may not yet show a post-election bounce, the optimism created by the new government’s announcements on housebuilding has resulted in the industry feeling optimistic for the medium term.
“Some early signs of intent from the government on how issues such as confirmation of how nationals planning frameworks can be streamlined, and measures to boost growth in the Budget, will further bolster confidence.”
