Construction output gets back on track with warmer weather

The UK construction industry enjoyed a stronger than anticipated recovery over the past few months.

construction

The industry has definitely got passed an earlier slowdown and is now moving the Bank of England closer towards an interest rate increase.

According to a survey from the Chartered Institute of Procurement and Supply and IHS Markit in June 2018, the market experienced the largest upturn in construction material purchases in two and a half years

The purchasing manager’s index activity gauge- which the Bank closely surveys- reached 52.5 in May, up from 53.1 the month before and reaching the highest level in seven months, despite expectations that the reading would be static. Any PMI reading above 50 is a sign of economic growth.

The industry rebound suggests that much of the difficulties experienced by UK builders earlier this year can be attributed to the “beast from the east” and was not due to bigger problems in the construction trade.

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Commercial developers wait for Brexit clouds to clear

Growth in the construction industry slowed last month for the first time since September.

construction

Uncertainty over Brexit and the future trading relationship between Britain and the European Union was blamed for moderate fall in commercial building work, continuing a downward trend that began in July.

The slowdown was outlined in the purchasing managers’ index for construction, a closely watched survey of the health of the sector. The industry makes up about only 7 per cent of the economy, but developers’ investment decisions are an indicator of how optimistic businesses are about Britain’s confidence and prospects.

The survey’s measure slipped to a balance of 52.2 in December, after hitting a five-month high of 53.1 in November. Any reading above 50 indicates growth, while a figure below represents contraction.

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A busy month for Construction and Property in the UK

The Self-Build Zone and Build Zone teams have had a jam-packed October, visiting shows across the country. We have had representatives present at some of our favourite shows this month and would like to encourage our readers to remember to add them to your diary next year!

construction shows

We kicked October off with UK Construction Week, UK Construction Week is the UK’s largest construction trade event. It took place at the Birmingham NEC from 10 -12th October 2017. This event unites over 650 exhibitors with an audience of over 35,000 trade visitors.

UK Construction Week celebrates an exciting and dynamic industry, offering visitors and exhibitors a place to network, debate and discover innovation.

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Structural Warranty Specialists Build-Zone, also provide Construction Insurance Services

Here at Build-Zone, we are well known in the construction industry for our 10 Year Structural Warranty, we are experienced in underwriting warranties for all types of developments, from single unit self-builds to large residential or commercial developments.

Construction Insurance

With years of experience, Build-Zone understand the importance of providing the right level of support throughout the build process, that’s why Build-Zone also provide Construction Insurance, which can provide comprehensive cover on an Annual OR project-by-project basis.

Build-Zone Construction Insurance can include Contractors All Risk (CAR) for New Works, Existing Structures being worked on (Terms, Conditions & Limitations may apply), Hired Plant, Own Plant, Public Liability & Employers Liability cover, Non-Negligent Damage, and Terrorism if required.

We have a range of policies available which can provide cover for any size development from a simple single unit New Build/Renovation/Conversion/ Extension through to large Residential, commercial and mixed-use developments.

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Can 200,000 starter homes be built by 2020?

The claim: The government will not be able to achieve the manifesto commitment to build 200,000 starter homes by 2020.

The verdict: It currently seems unlikely because money has only been set aside for 60,000 starter homes. Also, the current plan is for 22% of new developments to be starter homes, which would mean one million suitable homes being built by 2020 – that would be a significant acceleration of house building.

The government announced on Tuesday that it had given the go-ahead for the construction of thousands of starter homes.

Starter homes are new homes built for first-time buyers between 23 and 40 years old, sold at least 20% below market value. The maximum price after the discount has been applied is £250,000 outside London and £450,000 in the capital.

The Conservatives made a commitment in their manifesto for the 2015 general election to build 200,000 starter homes – the pledge to do so by 2020 was repeated in the call for expressions of interest in building starter homes that was released last March.

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