UK House Building and Renovations Set To Rise After Mid Year Lull

Britain’s construction industry is set to rise to a sharp high after December 2019 after the lull or dip in people planning & starting residential build works in September which reached its worst monthly performance in more thatn 3 years. Firms blamed the Brexit backlog for the lack of new work. Design and Build companies joined civil engineering firms and commercial contractors to warn that a wait-and-see approach to commissioning projects across the public and private sectors had detrimentally hit the industry. Many construction firms reported that they were retaining staff to be ready for a conclusion to the Brexit deal but, in the meantime, the general slowdown in the build sector and the possibility of leaving the EU without a deal was hampering demand. However Design and Build firm APT Renovation have posted that despite the lull, they saw an increase in planning applications and build jobs throughout the same time period which has contiued up until November and has tailed off at a consistently high startup rate. A combination of various construction surveys indicated the economy is at its weakest point since 2012.

Analysts expect the downturn to sharply riseover the oncoming six months. This goes in tandem with a rise in mortgage lending despite the lowest level of growth in consumer borrowing in over five years.
The mid year fall of housebuilding in 2019 was the largest reported Job for three years, w construction companies linked to a weaker outlook for residential sales.

Samuel Tombs, the chief Executive at Pantheon Macroeconomics, said the possibility a Jeremy Corbyn party might win an autumn election was hampering demand for a large-scale private sector in civil engineering projects. All three main sub-sectors, housebuilding, commercial and civil engineering are reporting a slow turn in upwards activity. The threat of a no-deal Brexit reportedly has hampered demand for commercial projects, while the risk of a Corbyn government following a general election has hindered activity in the civil engineering sector. Construction firms, however, expect the current upturn to be brief & expectations for levels of future activity improved slightly and were in line with those in the last six months. Duncan Brock, a director at the Chartered Institute of Procurement and Supply, said that "The purchasing activity and new orders dropped like a stone in June as the UK construction sector experienced its worst month for a over 3 years." The lack of clarity from policymakers has amplified the poor performance in June. Swift decision-making and a break in the political climate holds the key to pulling construction out of quicksand. An associate director of IHS Markit, said the deepening political and economic uncertainty were the main reasons construction companies saw the mid year drop in residential construction output since April 2016. While the scale of the downturn is in no way comparable with what is seen during the global financial crisis the abrupt loss of momentum in 2019 is only brief and will soon gain traction once the festivities have ceased.