Private housebuilding is expected to be the primary growth driver for the construction industry next year, according to the latest Construction Professionals Association (CPA) forecast.
The CPA has predicted that private housing growth will continue, with starts rising by 5.0% this year and 2.0% in 2018.
In the second quarter of 2017, the Help to Buy equity loan scheme was responsible for 40% of all new homes built. The CPA states that the extra £10 billion announced for the programme earlier this month will continue to keep housebuilding active despite the general housing market slowdown.
It will be difficult for the majority of construction firms to escape the impact that rising inflation, reduced economic growth, and declining wages will have on the industry over the next two years. Commercial building is expected to bear the brunt of all this in the construction sector.
Noble Francis, the Construction Products Association Economics Director, said that the decline in commercial construction may be offset by growth in infrastructure and housebuilding. However, due to the general housing market slowdown, especially in London, housebuilding is expected to increase by 2.2% both next year and in 2019.