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Half of October construction contract values are residential

Words: Laura Edgar

According to Barbour ABI’s latest Economic and Construction Market Review (pdf), 49 per cent of all construction values were awarded to the residential sector.

The value totalled £3.7 million, with private housing projects accounting for 81 per cent of all residential contracts.

Barbour ABI, which supplies construction data to the Office for National Statistics, the Cabinet Office and the Treasury, said the higher residential activity will be “warmly welcomed” by the industry after “lagging behind an infrastructure dominated few months”.

Commercial and retail construction was the second-highest sector for contracts awarded by value, making up 15 per cent of the market.

Construction projects that contributed to the “residential revival” were spread right across the United Kingdom, with Barbour ABI referring to the City North Development in London’s Finsbury Park valued at £120 million, and the Oakfield Road £70 million project in Altrincham, Greater Manchester, set to deliver 59 apartments.

Michael Dall, lead economist at Barbour ABI, said: “After a slower Q3 for construction activity it was vital for the industry as a whole that residential bounced back to help regain momentum. It was also encouraging to see the spread of contract values right across the UK, with no region dominating.”

“Although the residential contract value figure increased in October, the number of units awarded increased by only 2.8 per cent, suggesting that recent schemes are more focused on high value rather than high density, which does not necessarily bode well for those calling to increase housing figures. However, October’s total residential value was the highest for over three years and dominated by private housing, which has to be seen as a positive for the industry, economy and investors.”

Image credit | Barbour ABI