Comment on ONS Output in the Construction Industry, March & Q1 2016
Thu 12 May 2016
Charles Holland, Head of Residential Development and Investment at Marsh & Parsons, comments:"Behind the grey headlines, housebuilding is the one bright spot in the current construction landscape. Public andprivate sector housing are the only sectors to have witnessed an increase in construction outputquarter-on-quarter. A minor monthly setback in March can be forgiven, because the direction of travel over thepast few years is certainly heading in the right direction and it's private housebuilding and development that is
firmly at the wheel of this growth."
"London needs to build more new homes than anywhere else in the country. But they also need to be delivered atthe right price. It's not just enough for our new Mayor to pledge an annual quota for housebuilding while that'schallenging in itself, it needs to be coupled with affordability to truly work for everyday Londoners. Housebuildingefforts in the capital need to cater for the 250,000 to 850,000 price range, as this is where we see the strongestand most urgent buyer demand from first-timers and growing families."
ONS Output in the Construction Industry, March & Q1 2016
In March 2016, output in the construction industry was estimated to have decreased by 3.6 per cent comparedwith February 2016. New housing output fell 0.3 per cent in March 2016 compared with February 2016. InQuarter 1 (Jan to Mar) 2016, output in the construction industry was estimated to have decreased by 1.1 per centcompared with Quarter 4 (Oct to Dec) 2015. Between Quarter 1 (Jan to Mar) 2016 and Quarter 1 (Jan to Mar)2015, output was estimated to have decreased by 1.9 per cent. In Quarter 1 (Jan to Mar) 2016, there was an
increase of 4.8 per cent in total new housing output compared with Quarter 4 (Oct to Dec) 2015. Both public andprivate new housing reported increases of 4.2 per cent and 4.9 per cent respectively. All new housing has shownunderlying growth since Quarter 2 (Apr to June) 2013, with the exception of Quarter 3 (July to Sept) 2015. Whencompared with the same period a year ago, there was an increase of 3.4 per cent in total housing, with privatehousing increasing by 7.5 per cent offset slightly by a fall in public new housing of 14.3 per cent. The level ofprivate new housing is the main contributor to the level of total new housing, with public new housing having amuch smaller contribution. The level of private new housing has been increasing gradually since early 2013 andin Quarter 1 (Jan to Mar) 2016 was at its highest since records began in 1997 at 6.3 billion, while the level oftotal new housing is also at its highest at 7.5 billion.
About Marsh & Parsons
Marsh & Parsons, a multi-award winning estate agent, has been part of the London property scene since 1856.With 26 offices situated in prime positions across central, west and south west London, they have an intimate andextensive knowledge of the area. Marsh & Parsons' services include residential sales and lettings, propertymanagement, new homes, developments & investments, professional surveying and corporate & relocationservices.