Josh Ward-Jones speaks to Insider Media about the growing construction industry
Official data shows construction is now Britain’s fastest growing industry, and as Bloom director Josh Ward-Jones MRICS tells Insider Media, it has become a hotspot in the UK’s cooling economy.
The Office for National Statistics has confirmed that new orders for commercial construction in the third quarter were up a modest 2.8% compared to Q3 2023, but levels of repair and maintenance work rose strongly.
In an interview with Insider Media, Josh commented: “After a weak first half of the year, construction has surged to become the fastest growing industry in Britain’s slowing economy.
“But construction’s bragging rights come with caveats. The expansion posted in the third quarter came after three successive quarterly falls, so while the turnaround is welcome, total output is still down on where it was at this point in 2023.
“There’s also a two-speed feel to the industry data, with private sector housebuilding stuck in reverse as high interest rates continue to hold back developers’ willingness to buy land and build homes.
“The picture is even more alarming when you look at the pipeline. The value of new orders placed by private sector housebuilders fell by a third on the quarter, and is down by a painful 34.4% compared to Q3 2023.
“Such a sharp slowdown in developer demand for residential construction underscores the huge task the Chancellor faces in her quest to re-energise housebuilding.
“Labour has promised to ‘get Britain building again’ and get 1.5 million more homes built in England over the next five years. The sector now awaits with interest the planning reforms and release of green belt land the Government says will kickstart housebuilding in areas where people want to live.
“Things are more positive in commercial real estate. New orders for commercial construction in the third quarter were up a modest 2.8% compared to Q3 2023, but levels of repair and maintenance work rose strongly.
“On the front line we’re seeing strong demand from commercial property landlords keen to invest in repair and refurbishment to generate extra value from existing buildings.
“Infrastructure and civil engineering builders are licking their lips at the prospect of the huge projects announced in last month’s Budget, but for many housebuilders the elephant in the room remains the high cost of borrowing and all eyes will be trained on the Bank of England to see if it will reduce interest rates further to help boost Britain’s flagging economy.”