Optimism in construction – yes let’s be positive now

Well 2015 feels well and truly up and swinging and the one point that strikes me in the various meetings I’ve had over the last two weeks is positivity and optimism and why not as housing is rising on the political agenda, and the UK is well and truly building again. Just looking out of the office window earlier in the week and the view over two construction sites just made me smile.

Although in history, 2014 was a good year for housebuilding, with the highest number of new homes constructed since the recession hit in 2007, and I think 2015 will exceed it. In every area across the UK, builders are hard pushed to meet the demand in the area – noted more so with a development local to where I live which is truly in the worse location it could possibly be, yet fully sold of the plan! Across the country varying sizes are being constructed, with the £8bn Battersea Power Station project through to small regional developments with 10 houses.

The statistics highlight the positive change:

·         In 2014, 144,000 new homes with registered with the NHBC, a whopping 8% increase on the prior year;

·         NHBC highlights further that over the last two years there has been recovery across the country with strong growth in Yorkshire & Humberside (and too right, it’s a lovely place to live); and

·         300,000 is the estimated number of new houses needed a year (according to the Royal Town and Planning Institute).

The main issue that is present, and growing as the industry increases production, is the shortage of skilled workers and materials, mainly bricks. There is a focus on upskilling and a number of recent discussions are demostrating to me that the industry is really looking at how to retain and train existing, attract new and invest in the future through apprenticeships and other means.

Away from housebuilding, 2015 is also showing strong signs:

·         Manchester Airport Group have submitted plans to build the first part of the logistics hub at Airport City;

·         Harworth Estates acquired the former Skelton Power Station in Leeds for redevelopment; and

·         Wykeland continues to develop Beverley town centre.

I think it all sums up as good news across the region. Yes there are still empty buildings and hard times for some but the whole industry should focus on the good signs of stability and renewed investor interest.

Feel free to contact me 0113 288 2276 or lee.a.wilkinson@uk.pwc.com if you wish to discuss this blog or anything relevant to property and construction.

Enjoy the weekend

Lee

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