Residential gained 37% of the £5.1bn-worth of contracts awarded in July, according to construction intelligence provider Barbour ABI.
The value of all contracts was down slightly from June, but was 6.2% higher than a year ago. London and the south-east continued to be the hotspots with the £100m contract for the regeneration of Vauxhall Nine Elms in London and the £150m M3 motorway project in Surrey.
The news of rising residential work comes on the back of record profits for some of the UK’s largest housebuilders. Persimmon posted a 166% increase in pre-tax profits, Bovis 57% and Bellway 36%.
“Once again residential construction continues to dominate the industry and it is not surprising to see housebuilders reporting record growth across profit, completions and average selling prices. This is not likely to change as long as the current economic conditions persist and demand remains strong,” said Barbour lead economist Michael Dall.
Meanwhile, the latest CBI Industrial Trends Survey reveals that expectations for manufacturing output growth in the next three months are strong, despite an easing of pace over the past quarter. “The outlook for UK manufacturers remains healthy, with both total and export orders firming up,” said Katja Hall, CBI deputy director-general.
