Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

UK construction buoyed by house-building: surveys

Published 05/01/2019, 07:06 PM
Updated 05/01/2019, 07:10 PM
© Reuters. FILE PHOTO: Construction cranes are seen above a refurbished Mill building in the city centre of Manchester

LONDON (Reuters) - Britain's construction industry is being shielded from the uncertainty about Brexit by modest growth in house-building, industry surveys showed on Thursday.

Builders registered 37,672 new homes for warranties and insurance from the National House-Building Council (NHBC) between January and March, up 3 percent compared with a year earlier.

NHBC's figures, which cover 80 percent of the new homes market, are viewed as a lead indicator for the housing sector.

Separately, the Royal Institution of Chartered Surveyors (RICS) said private house-building supported the otherwise subdued construction industry, with overall confidence at an almost six-year low.

While the commercial construction sector has been hurt by falling business investment ahead of Brexit, efforts to narrow a shortfall in the number of residential homes on the market has helped the house-building sector.

Construction represents about 6 percent of British economic output.

"We are pleased to report good numbers for the start of the year, although we do need to bear in mind the situation 12 months ago when freezing conditions caused major hold-ups in registrations as well as build-rates across the bulk of the UK," NHBC chief executive Steve Wood said.

Uncertainty around Brexit had caused "some dampening" of the housing market for new homes in early 2019, he said.

Prime Minister Theresa May has failed to get her European Union divorce deal through parliament, forcing her to delay the original Brexit date of March 29. A new deadline has been set for Oct. 31, more than three years since the 2016 referendum.

© Reuters. FILE PHOTO: Construction cranes are seen above a refurbished Mill building in the city centre of Manchester

House-building was the only source of growth for Britain's construction industry during the first three months of 2019, according to the most recent purchasing managers index from IHS Markit/CIPS. The survey for April is due at 0830 GMT.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.