ONS Construction Output: Urban Exposure comment

Corry Bourke, Director of Portfolio Management at Urban Exposure, a leading residential development finance provider, comments on the ONS data on Construction Output:

“The UK construction industry is failing to gain momentum. While there has been an up-tick in construction output year on year, the fall from the third to the fourth quarter in 2015 is disappointing. When considered in light of the weak industrial output figures released this week, which showed output fell in December, it does not paint an overly positive picture for the UK housing market.

“Against the backdrop of poor industrial output, today’s numbers reflect a dampening of confidence in the UK construction sector, with firms becoming naturally wary of investing or expanding. This is likely to weigh down on the construction of new homes and as a result house prices will continue to rise unless more is done to bridge this supply gap. With recent reports suggesting the average UK house price could reach £1m by 2032, it is imperative that action is taken to encourage and facilitate the building of more homes. As we have been saying for some time, supply continues to be constrained by developers having a lack of access to finance as well as a shortage of key materials and a skilled workforce.”