Housing starts growth underpins construction sector expansion
13 January 2014Housing starts increased by an estimated 24% last year, and further rises in 2014 and 2015 are expected to help boost growth in the wider construction industry, according to the Construction Products Association (CPA).
The CPA's latest forecast says construction output is expected to rise by 3.4% in 2014 and by a further 5.2% in 2015, with housing starts projected to achieve growth rates of 16% this year and 10% in 2015.
But it says there were strong concerns whether housebuilding would continue to improve after 2015 - when the government's Help to Buy stimulus ends.
Private housing repair, maintenance and improvement work is predicted to rise 3.5% in 2014 and then by 4% per year until 2017.
The CPA report also recorded growth in new infrastructure and a recovery in London commercial activity, to supplement the buoyant private housing sector.
The private commercial sector, contracted by 33.1% between 2008-2012, grew 2.3% in 2013 and is now predicted to expand by 2.7% this year.
