The UK construction industry has been showing signs of recovery in recent months, with the latest figures from the Office for National Statistics (ONS) indicating that output in the sector increased by 0.9% in the three months to August 2019. This is the first time since April 2018 that the industry has seen an increase in output.
The construction industry has been struggling since the Brexit referendum in 2016, with output falling by 4.5% in the three months to August 2019 compared to the same period in 2018. This was largely due to a lack of investment and uncertainty surrounding the UK’s future relationship with the European Union.
However, the latest figures suggest that the industry is beginning to turn a corner, with output increasing in all three of the main sectors – private housing, public housing and commercial construction. Private housing saw the biggest increase, with output rising by 2.2%. This is likely due to an increase in demand for new homes as a result of population growth and a lack of available properties on the market.
The increase in output is also being driven by a number of government initiatives, such as the Help to Buy scheme which has helped to boost demand for new homes. The government has also announced a £3 billion fund to help local authorities build more social housing, which is likely to have a positive impact on the construction industry.
The signs of recovery are encouraging for the industry, but there is still a long way to go before it returns to pre-Brexit levels. The UK’s future relationship with the EU is still uncertain, and this could have a significant impact on investment and demand for new homes.
Nevertheless, the latest figures suggest that the construction industry is beginning to show signs of recovery, and this is likely to be welcomed by those working in the sector. With government initiatives helping to boost demand for new homes, and investment returning to the sector, there is reason to be optimistic about the future of the UK construction industry.