Home building in the UK is certainly rebounding from the financial crisis, with more chartered surveyors noting growth in Q3. According to the latest construction market survey from the Royal Institution of Chartered Surveyors (RICS), the third quarter of the year saw a record net balance of 41 per cent more respondents report rises in privately-funded housing projects compared to Q2. What's more, construction is strengthening across all parts of the country. Each region reported growth in Q3 - the first time this has happened since the market crash six years ago.
Signs certainly point to the arrival of the long-awaited upturn in the number of new homes being created. The three months to September also saw the outlook for the construction sector improve overall, with workloads rising at their strongest rate since summer 2004 to a net balance of +31 per cent. Growth in private commercial and industrial developments has helped to drive this, as funding begins to filter through to businesses. This has helped to give developers and construction firms the confidence they need to ramp up home building.
As a result of increased activity, employment has also increased, with a net balance of +49 expecting more jobs to be created in the sector over the next 12 months. However, the skills shortage threatens the impact of this upswing and there could be potential capacity issues if the recovery continues to gather pace.
It is certainly likely this will be the case with 71 per cent of respondents expecting the volume of work to pick up speed, resulting in a near four per cent jump in output. It is believed this will have a knock-on effect for profits and more companies are expecting their financial position to improve over the coming year.
Simon Rubinsohn, RICS chief economist, commented: "While it's certainly good news that construction - and especially housebuilding - is finally on the rise right across the UK, we are certainly not out of the woods yet. Critically, we're still way behind in terms of building enough homes to meet the nation's growing housing need and overall construction projects are at a historical low."
Will more building make a difference to house prices? We take a look at 40 years of construction and house price data
- Monday 28 October 2013