Featured Region: London

Recent years have seen high levels of construction activity in the greater London area, the region has benefitted from gains across a number of sectors that pushed underlying starts in 2010 well above pre-recession levels. Surging population levels have meant the regions private housing sector has gained in each of the past three years and starts of infrastructure projects surged in 2011 as the capital geared up for the 2012 Olympic games. The gains in UK office starts seen during 2012 were also heavily concentrated in the capital, driven to a large extent by foreign investors buying into what is seen as a safe long term investment in London office property. 

The Office for National Statistics reported a 3% rise in construction output in the region last year, the lion’s share of this increase came from repair, maintenance and improvement work, which saw a large increase in most sectors, particularly in infrastructure RM&I. Output of new work was down overall but strong gains were recorded in new private housing construction. 

Underlying starts last did see some slippage from the peak level recorded during 2011, down 1%, as gains in most sectors were a little shy to offset the falls in the civils and education sectors. The first six months of 2013 has seen a return to growth with starts 5% above the level seen during the first six months of 2012. Gains have been recorded in the civils sectors.