December 21, 2016
Construction output down but housebuilding remains buoyant
Despite a slowdown in UK construction output in October, housebuilding remained strong.
According to the Office for National Statistics (ONS), the construction sector shrank 0.6% between September and October this year.
Uncertainty surrounding the vote to leave the EU could be responsible for the slight slowdown in overall construction output.
However, there are positive signs for housebuilding, with a 12.6% increase in the number of new homes being built.
Chancellor Philip Hammond made housebuilding a focus of November's Autumn Statement in a move designed to help ease the housing shortage.
The 'housing challenge' will be met with a £2.3bn Housing Infrastructure Fund which will provide 100,000 homes in areas where there is high demand. London will receive £3.15 billion to build 90,000 new houses in the capital, while an additional £1.4 billion will deliver 40,000 affordable homes.
As demand continues to outstrip supply, housebuilding needs to be a focus for the government. The Chancellor also stressed the need to invest in transport links and infrastructure to support those areas where housebuilding is taking place. All this will help to re-energise the construction sector, while creating jobs and growth in construction as well as the wider UK economy.
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