Construction output is forecast to increase 13.2% by 2017 and private house building is expected to be a key driver of this growth, according to the latest forecasts from the Construction Products Association.
Key highlights from the forecasts include:
- Total construction output is forecast to rise 4.9% in 2015, 4.2% in 2016 and 3.5% in 2017
- Private house building is anticipated to rise 9.0% in 2015, 5.5% in 2016 and 3.5% in 2017
- Public house building is forecast to fall 10.0% in 2015, 5.0% in 2016 and remain flat in 2017
- Infrastructure output is forecast to rise 10.3% in 2015, 10.8% in 2016 and 10.4% in 2017
Dr Noble Francis, Economics Director, commented: “Prospects for the construction industry are very bright. Construction output is forecast to increase 4.9% in 2015 – almost double the rate of growth for the UK economy as a whole – and 21.7% overall by 2019. This growth will mainly be driven by an increase in work across the private housing and infrastructure sectors.
“Private house building is forecast to rise 9.0% in 2015 and 5.5% in 2016 as it benefits from a strong property market supported by rising real wages, increased mortgage availability and government policies such as Help to Buy. However, public house building activity is expected to fall sharply – 10% in 2015 and 5.0% in 2016 – due to the negative impact of cuts to social rents and the extension of Right to Buy on housing association funding.”
Dr Francis continued: “Infrastructure is also forecast to be one of the key drivers of construction growth over the next five years. The government has a National Infrastructure Plan in place with a pipeline of projects across the UK worth £411 billion. As a consequence, we forecast that infrastructure output will experience double-digit growth each year to the end of our forecast horizon in 2019.”