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Construction Activity to Continue to Expand

Glenigan has predicted that the base value of new project starts will experience a 1% rise for the remainder of the year, followed by a 2% increase in 2018.

The news is encouraging, and Glenigan has indicated that since the EU referendum, capital expenditure has gone up, with more public spending forecast, following the General Election last June.

It is believed that the surprise General Election result will mean investment will be focused on hot political headline issues such as social housing in the wake of Grenfell Tower fire or the overburdened NHS, leaving fewer financial resources available for infrastructure projects.

A spokesperson for Glenigan said that uncertainty over Brexit negotiations will inevitably have an impact on the construction industry outlook for the next two years. While a slowdown in economic growth is likely to have an effect on getting new projects off the ground, especially in the private sector, overall activity in the industry should keep expanding.

Elsewhere, the value of new health sector projects appears set to increase by 23% this year and, despite ongoing challenges, education-related construction activity is expected to rebound substantially next year.

 

Specialists in Construction Insurance

The Build to Rent movement in private sector housing is also gathering momentum. Last year, project numbers encompassed over 5500 units and translated to a substantial £750m, and the growth is expected to continue in 2017.

UK housebuilders received welcome news too. Last month Persimmon Homes announced healthy sales totals through May and June, and the market was mostly unaffected by the snap election results. First-half completions totalled 7794, which was an 8% increase on the same period in 2016.

Glenigan also said that the supply of plots available for development has improved greatly over the past three years, particularly in London and the south of England. This news brightens the outlook for construction activity nationwide, aside from any economic uncertainties.

 

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