Glenigan sees "cautious optimism" for residential sector

Construction industry information provider Glenigan says that its latest Construction Review for June reveals grounds for “cautious optimism” for the residential sector.

The review finds that private new housing output grew by 3% against the previous three months but was 1% down on a year ago. Social new housing output also grew, rising by 10% against the preceding three months but was 16% lower than a year ago.

Totalling £6,432 million, residential starts during the three months to May were 67% higher than a year ago but 24% lower than the same period in 2019. Underlying-starts (less than £100 million) were only 5% behind 2019 levels. Main contract awards increased 71% against the previous year and detailed planning approvals climbed 27%. Both were higher than the same period in 2019.

Commenting on these findings, Glenigan’s economic director, Allan Wilen said: “Encouragingly, further growth is expected with both main contract awards and detailed planning approvals strong. However, supply and cost of materials may dampen the pace of growth for housebuilders and the wider sector. Further progress will be needed over the summer to bring construction activity back to pre-pandemic levels.”

Glenigan’s Construction Review is a monthly report providing analysis of its data as …