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 and private sector housing are the only sectors to have witnessed an increase in construction output quarter-on-quarter. A minor monthly setback in March can be forgiven, because the direction of travel over the past 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 at the right price. It’s not just enough for our new Mayor to pledge an annual quota for housebuilding – while that’s challenging in itself, it needs to be coupled with affordability to truly work for everyday Londoners. Housebuilding efforts in the capital need to cater for the £250,000 to £850,000 price range, as this is where we see the strongest and 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 compared with February 2016.
- New housing output fell 0.3 per cent in March 2016 compared with February 2016.
- In Quarter 1 (Jan to Mar) 2016, output in the construction industry was estimated to have decreased by 1.1 per cent compared 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 and private new housing reported increases of 4.2 per cent and 4.9 per cent respectively. All new housing has shown underlying growth since Quarter 2 (Apr to June) 2013, with the exception of Quarter 3 (July to Sept) 2015.
- When compared with the same period a year ago, there was an increase of 3.4 per cent in total housing, with private housing increasing by 7.5 per cent offset slightly by a fall in public new housing of 14.3 per cent.
- The level of private new housing is the main contributor to the level of total new housing, with public new housing having a much smaller contribution.
- The level of private new housing has been increasing gradually since early 2013 and in Quarter 1 (Jan to Mar) 2016 was at its highest since records began in 1997 at £6.3 billion, while the level of total 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 and extensive knowledge of the area. Marsh & Parsons’ services include residential sales and lettings, property management, new homes, developments & investments, professional surveying and corporate & relocation services.