Featured Region: South West

The upturn in project starts underway since 2011 lost momentum last year. The value of underlying starts increased by 5% in 2013, rather than the double digit growth seen during the preceding two years. More recent data suggest that last year’s slower growth was a pause for breath, with starts during the first eight months of 2014 14% up on a year earlier.

House building has been an important and positive driver of rising work volumes, with the housing market in the region beginning its recovery in 2012. Subsequently regional house prices have broadly followed the national average, falling between the rapid price increases seen in London and South East and the more gradual improvement in other parts of the UK. The Nationwide estimate that average house prices in the south west rose by 2.6% during the second quarter of 2014 to stand 9.8% up on a year earlier. 

This strengthening in the wider housing market has supported an increase in private new housing starts and repair, maintenance & improvement activity.  

Private non-residential activity has been slower to turnaround. However, a rise in industrial and private commercial sector output during the first half of 2014 indicates that the earlier upturn tracked by Glenigan in the development pipeline and project starts is flowing through to increased industry workload.