Construction output levels decline by 0.8%

Construction output levels decline by 0.8%

A decline in repair and maintenance led to a 0.8% drop in construction output levels in the three months to August 2017.

Repair and maintenance fell by 0.6% and all new work which fell by 0.9% however the construction remains at relatively high levels according to the latest Construction output survey by the ONS.

Construction output peaked in January 2017, reaching a level that was almost 30% higher than the lowest point seen in the last five years.

Despite the overall declines seen, all new work saw month-on-month growth of 1.7% in August, recovering from a 1.5% decrease in July.

Neil Knight, business development director of Spicerhaart Part Exchange & Assisted Move, said of the figures: “Thanks to an increase in private house building and infrastructure, construction in the UK defied expectations in August however, overall, growth in the sector remains sluggish.

“As a result of the government’s Housing White Paper, it seems that initiatives to help relax planning regulations and permissions are finally starting to take effect.

“By reducing obstacles to housebuilding, this will hopefully help developers, SME builders and local authorities to build the homes that the country needs to meet the growing demand from a growing and ageing population.

With not enough stock of existing homes coming to the market, the country’s growing interest in new build homes is set to continue. It is helping to satisfy demand and this will encourage developers to build more new homes as they can be confident that the properties will sell.”