Construction Industry Forecast Spring 2014

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Fuelled by a significant rise in private housing starts, construction output is forecast to rise by 4.5% in 2014 and a further 4.8% in 2015 as the industry recovery - which began in 2013 - starts to take hold.

Private housing starts in GB rose 20.9% in 2013 due to a combination of wider economic growth and government policies such as Help to Buy part one, according to the latest figures from the Construction Products Association.

Private housing starts in 2014 and 2015 are expected to rise 18.0% and 10.0% respectively with further growth of 5.0% per year in 2016 and 2017. To the end of February, there have been 16,465 sales in England under Help to Buy part one in less than one year. Of these sales, 6.9% have been within Greater London, where the greatest demand currently is. Help to Buy part one has acted as a signal that government is attempting to enable greater demand for buyers of new build, which in turn has led to house builders raising supply in the near-term.

The spring 2014 edition of the Construction Products Association (CPA) construction industry forecasts predict and provide details of the expected market trends for the UK construction industry in the forthcoming years.

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