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Comment on CIPS/Markit Construction PMI statistics

Charles Holland, Head of Residential Investment at Marsh & Parsons, comments: “Residential building activity has made some recovery from the dip it suffered in March, while the construction market as a whole is showing a number of positive long-term signs. For example, employment levels in the sector are continuing to rise, suggesting building companies are bracing themselves for higher demand in the future.

“Most encouraging is the activity at the first-time buyer end of the market, where a range of Government incentives have been designed to stoke demand such as the recently-extended Help to Buy scheme, which has led to a building boom in affordable housing. This is particularly evident in certain outer boroughs of London, where the construction of properties aimed at first-time buyers has encouraged a rejuvenation of areas that had previously been overlooked by developers. Ensuring that this great momentum is sustained is the Government’s next challenge.”

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