Housebuilding remains strong in latest figures from Barbour ABI.
It was positive news for housebuilding across July, as construction contract values for the sector reached £2.5 billion, according to the latest edition of the Economic & Construction Market Review from construction industry analysts Barbour ABI. Four of the top ten biggest construction contracts agreed this month came from housebuilding – including the Charter Square development in Staines, valued at £120 million.
However analysis of the infrastructure sector showed a significant decline as figures reached the lowest total for more than six years.
Infrastructure produced just £784 million worth of construction contract value, a 97% annual decrease and its worst performing month for more than six years. Typically one big value infrastructure project is commissioned each month, which was absent in July.
Commenting on the figures, Michael Dall, Lead Economist at Barbour ABI, said: “Overall construction figures remained steady in July, thanks to the robustness of the housebuilding sector, producing another strong month. In reality, this picked up the slack for waning sectors such as infrastructure and commercial & retail that fail to make up lost ground.”
“Across July there were 925 construction projects commissioned but these did not fall consistently across the sectors, putting an ever increasing emphasis on housebuilding’s robust figures to make up for the lack of investment in other parts of construction.”
Regionally, London and the South East led all regions, both with 14% of the total construction contract value. Some of the larger projects in these areas includes the Oxford Technology Park worth £90 million and the Wandle Terrace redevelopment valued at £70 million.