Construction Orders Increase At Fastest Rate Since 1997

May PMI data indicated that the UK construction sector remained on a strong recovery path, as output growth reaching its strongest since September 2014. New order volumes increased at the fastest pace since the survey began just over 24 years ago. Input cost inflation was also at a survey-record high during May, reflecting a surge in demand for construction materials and severe supply shortages. Read more on the pbctoday website.

UK construction orders increase at fastest rate since 1997 (pbctoday.co.uk)

UK Construction Sector Loses 46% Of Skilled EU Workers

The UK construction sector has lost 46% of its skilled EU workers, according to research by the Migration Observatory at the University of Oxford, as Brexit and Covid-19 lead to staff shortages. New research reveals that in 2019, a total of 113,000 EU-born professionals worked in the UK’s skilled construction and building trade. That’s a 46% decrease from previous ONS data, which listed 208,000 skilled EU workers. Construction industry experts now warn that the exodus of skilled EU workers is the result of Brexit as well as Covid-19 and requires immediate Government attention to avoid staff shortages. Read more on the pbctoday website.

https://www.pbctoday.co.uk/news/hr-skills-news/skilled-eu-workers/87732/

59% Of Existing EU Construction Workers ‘Would Be Ineligible’

59% of current EU migrants in the construction sector would have been found ineligible under new government immigration plans. The new system will only allow those who gain enough points through skills and qualifications to be granted a visa. The think tank IPPR has analysed government data to estimate the share of EU migrant workers in the UK who would be deemed eligible for a skilled work visa under the proposed system. The research found that in total, around 69% of EU migrants currently working in the UK would be ineligible for a skilled work visa if the future immigration rules were to apply to them. Read more on 24housing.

https://www.24housing.co.uk/news/59-of-existing-eu-construction-workers-would-be-illegible/

Construction Sector Loses Patience With Brexit Indecision

The markets' patience with Brexit related indecision appears to be wearing thin, as the results of the Q2 2019 RICS Construction and Infrastructure Market Survey shows output growth accelerating, and workload and employment expectations gathering pace for the year ahead. This quarter, 16% more respondents reported an increase in construction workloads, up from a +9% net balance in Q1. Relative to other sectors, workloads in public housing grew at the fastest pace, closely followed by private housing. The rise in workloads in social housing (+26% up from +6%) suggests that the lifting of the HRA borrowing cap may have begun to influence sentiment in social housing construction. Read more on the RICS website.

https://www.rics.org/uk/news-insight/research/market-surveys/uk-construction-and-infrastructure-survey/q2-2019/

Housebuilding Returns UK Construction Sector To Growth In April

Britain’s construction sector returned to growth last month thanks to a pick-up in housebuilding, though the outlook is less certain due to a sharp fall in new orders, an industry survey shows. The IHS Markit/CIPS construction Purchasing Managers’ Index (PMI) rose to a three-month high of 50.5 in April from March’s 49.7, a shade higher than the reading of 50.3 forecast on average in a Reuters poll of economists. “A return to growth would normally be considered a positive month for the UK construction sector, but the weakness outside of house building gives more than a little pause for thought,” IHS Markit economist Tim Moore said. Read more on the Reuters website.

https://uk.reuters.com/article/uk-britain-economy-pmi/housebuilding-returns-uk-construction-sector-to-growth-in-april-pmi-idUKKCN1S80K4

Rise In Housebuilding Boosts Construction Sector In May

Activity in the UK construction sector expanded at its fastest rate in 17 months in May, boosted by a surprise rebound in homebuilding, a survey says. The Markit/CIPS construction purchasing managers' index rose to 56 from 53.1, its highest level since December 2015. A figure above 50 indicates expansion. Builders also hired more workers and ordered more supplies to deal with an increase in new projects. Economists said the sector was recovering after a slow start to 2017. Read more on the BBC.

Construction Sector Grows At Fastest Pace In Seven Months

The British construction sector expanded at its fastest pace since March last month, buoyed by a strong performance in residential projects as output and volumes picked up in the months after the country's Brexit vote.  The closely-watched Markit/CIPS UK Construction Purchasing Managers' Index stood at 52.6 last month, compared with analysts' expectations for a 51.8 figure and with the 52.3 reading recorded in September. A reading above the 50.0 mark indicates growth, and October was the first time in four months the sector had reported signs of expansion. Read more on the IBT website.

Brexit Puts Almost 50,000 Property And Construction Firms At Risk

Almost 50,000 property and construction firms with “shaky” foundations could bear the brunt of Brexit, according to new research, which revealed that 49,186 construction and real estate businesses were classified as experiencing “significant” financial distress ahead of the EU referendum in the second quarter of 2016. Experts are now predicting London house prices could plummet by up to 20% following the decision to leave the EU. Despite the high proportion of construction firms at risk, the research found that financial distress decreased across every sector in the UK prior to the referendum. Read more on the Development Finance Today website.

Brandon Lewis On Prefabricated Housing: 'Key To The Sector's Future'

Brandon Lewis spoke to MPs at Westminster Hall regarding the issue of prefabricated housing, saying the government was “committed” to the idea. He said the Housing and Planning Bill, recently passed at its second reading, was part of the government’s plan to help prefabricated housing and innovative design. He said: “We are committed to encouraging not only home ownership, but increased housing supply, to make sure that we have more good-quality homes that people can afford to buy and that we support all parts of the housing market and all tenures. The way we do that is equally important. We need to deliver more new, high-quality homes, with well thought out interior design, built quickly and efficiently. We want to see innovation in the house building and construction sector.” Read more on 24dash.