GB output falls in May

By Joe Malone18 July 2016

The Great British construction industry declined 2.1% in May, compared to the previous month, according to the latest report by the Office for National Statistics (ONS).

The report also noted falls in all new work (2.6%), and repair and maintenance (1.4%) during May.

Meanwhile, output in the construction industry fell 1.9% compared with the same month a year ago.

There was also a decrease of 2.1% over the three month period in all new work (March, April and May, 2016), compared with the previous three months (December 2015, January and February 2016), and a 1.7% decrease compared with the same period a year ago.

Andrew Bridges, managing director of UK-based estate agents Stirling Ackroyd, said, “Housing has typically been one of the most reliable areas within construction. Demand is consistent and people are crying out for new homes, not just in London but across the whole of the UK.

“Uncertainty about Brexit has placed extra strain on the industry recently, placing overseas deals in doubt and the sector’s workforce on the line.”

He added that with the vote now decided the crucial action was taken to bolster the sector. He said the laying of cement and bricks was slowing, and a new momentum was needed.

He said, “Just 61% of new homes were allowed by London borough councils in the first quarter of 2016 and, if that carries on, London’s housing deficit will worsen even further.

“Inefficient regulations need to be revised, new builds need to be encouraged and the new housing minister – whoever they may be – must provide both decisive leadership, and a pragmatic plan.”

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