In February the UK’s residential sector experienced a large increase in the number of contracts being awarded for residential unit construction, reaching the highest total since Barbour ABI began recording these figures.
The total number of units awarded in February was 14,455, a figure calculated from a three-month rolling average. In total, the residential sector witnessed an 8.6% increase compared to the month before and is 49.5% higher than February 2014, which is proof positive of a strong start to the year.
Based on a three-month rolling average, project value for the residential contracts awarded climbed 1.1% between the months of January and February and were 1.8% higher than the numbers reported in February 2014.
These results demonstrate the ongoing resiliency in the residential sector, which looks set to continue leading the construction industry throughout 2015.
Nationwide’s house price indices for February revealed that on average, property values are going up by 5.7% annually, which is a decrease from the January total of 6.8%. This was the sixth month in a row that property price growth slowed down since a peak of 11.7% in June 2014.
Although the Halifax reported that annual house prices rose by 8.3% in February (down from a January total of 8.5%), figures from the Bank of England confirmed that there were 60,786 mortgage approvals in January, up from 60,349 at the end of 2014. However, this higher figure is still lower than the six-month average of 61,666.