Building industry analyst Glenigan has forecast a 7.3 per cent increase in the number of construction starts for the coming year – a boom driven by a burgeoning commercial sector with upturn coming specifically from the Office and Educational Sector. This is a slight increase than the news digest story published last month on this website, where a 5.3% increase was predicted for the next year.
Glenigan is an organistation, which tracks all UK building projects from planning to completion, said a 23 per cent increase in office construction would ‘dominate’ growth over the next year, offsetting predicted dips in healthcare and social housing work.
Economics director Allan Wilén said the UK construction sector’s forward pipeline pointed to sustained output growth during 2015.
‘The pre-construction pipeline remains firm, with strong growth in private housing approvals in particular, offsetting weakness in public sector areas,’ he said.
‘Renewed consumer confidence and the accompanying revival in the general housing market have emerged as key growth drivers for both construction activity and the wider economy.
‘However, Prime Minister David Cameron’s economic warnings at the G20 Summit this week underline the importance of continuing to foster private sector confidence to safeguard future economic and industry growth.’
Glenigan said the pick-up in office starts would not be limited to London, but would cover major metropolitan areas, while retail and leisure project growth was also forecast to be spread widely across the UK as consumer spending gained momentum.
In particular, it predicted strong regional growth for the West Midlands, and added that Scotland was expected to bounce back as projects deferred in the run up to the independence referendum vote got under way