June sees risk in new work as CPA shows signs of recovery
Data from the Office for National Statistics has revealed that monthly construction output grew by 0.5% in June, with new housing rising by 2.4% since the start of the year.
Second quarter construction output figures from April to June were down by -0.1% on the first quarter of the year, following heavy rain in April.
Meanwhile, the latest State of Trade survey from the Construction Products Association shows signs of recovery in the second quarter of 2024.
Both heavy-side and light-side manufacturers reported an increase in sales volumes in the quarter, with positive expectations over the coming year.
However, ongoing demand remained a concern, with a record-high proportion of manufacturers sounding concerns over the availability of labour.
Small building firms are also reporting signs of recovery, according to the latest State of Trade survey from the Federation of Master Builders (FMB).
The survey, which covers the second quarter of the year, reports workloads up by 7% and an increase in enquiries of 3%.
Brian Berry, Chief Executive of the FMB, said: ““Increasing workloads are a positive sign that the construction industry is slowly growing. However, firms are continuing to face difficulties in recruitment, which has been an ongoing issue.
“It’s also worrying to see a significant rise in the number of businesses reporting lower than expected profits this quarter, 55%, up from 44% in Q1 2024, which shows the challenges the UK continues to face.”
Finally, construction starts this year are up by 8% when compared to last year, according to the August 2024 edition of the Glenigan Construction Review.
Covering the three months to the end of July, the report attributes the increase to a significant spike in major project starts, which rose by 42% compared to 2023.
However, planning approvals fell -6% against the previous three months, and -32% on 2023.
House prices edge up in June
The latest house price index from the Office for National Statistics has revealed a 0.5% increase in property values in June, reaching an average price of £288,000.
House prices have increased by 2.7% over the year, with annual prices increasing in England by 2.4%, Wales by 1.8%, Scotland by 4.3% and Northern Ireland by 6.4%.
Bellway withdraws Crest offer
Following weeks of speculation, Bellway has announced that it has no further plans to acquire Crest Nicholson.
The firm had until 20 August to confirm whether it would make a firm offer, but stated this week that it did not intend to proceed, and remained confident that its “robust balance sheet and operational strength, combined with the depth and quality of its landbank, will enable Bellway to deliver volume growth in the years ahead and support ongoing value creation for shareholders”.
Meanwhile, TopHat has settled two winding-up petitions from Harworth Estates out of court this week.
Strategic change needed, say planners
Research from the Royal Town Planning Institute has found that 96% of planners want “effective” strategic planning in England.
The report, Strategic Planning in England, shows that reform is needed across the private and public sectors, with 40% of local authority planners working in areas without statutory strategic planning.
The revised National Planning Policy Framework, out for consultation until September 2024, contains sweeping changes to the planning system, including the reinstatement of mandatory housing targets.
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