Featured Sector: Private Housing

Last Updated:

8th October 2012

Underlying value of construction projects starting on site. (Excludes individual projects of more than £100 million and framework agreements).

2011 saw flat house prices, falling numbers of transactions and weak lending figures. Despite rises in housing completions, house building has been on a downward path. Since the summer of 2010, where a temporary recovery was providing optimism amid a gloomy construction industry, Glenigan has recorded falling levels of starts, a drop in the number of planning approvals and a lengthening in the time it takes projects to start on site having achieved planning approval.

The negative trend persisted until the summer of last year, when the value of project starts stabilised and has since begun to rise. Over the first quarter of 2012, the underlying value had increased by 30%. This was followed by a 40% increase in the three months to June. We are expecting to see this growth continued through the year.