UK house building output continues to rise

Developers and the construction industry are continuing to do their upmost to lift the country from the housing crisis with the latest figures revealing that new house building increased in July, up 5.6% on the previous year.


Richard Carr Uk House Builders

Output is increasing

The amount of orders being placed for new homes increased by a massive 25% between the first and second quarter of 2016, which is the highest increase since 1967 when growth rose to 44.1%.

A major factor in the increase was the amount of new orders being received in the second quarter of the year for private new houses, which increased by 28.2% to a level of £3.5billion. That level is the highest second quarter for nine years when, back in 2007, it was £3.6billion.

Once again, the quarter on quarter increase highlights that the gloomy Brexit predictions are yet to be realised.

Private vs Public

Richard Connolly, chief executive office of Rentplus, told

“The figures do reveal the startling disparity between the private and public sector housing markets. The 8.3% increase in new private housing between July 2015 and 2016 is strikingly offset by an 8.6% decrease in the number of public homes being built,’ he pointed out.

“This trend is reflected in the new start figures, with public housing accounting for just 11% of all new housing orders, well below Government targets. More urgently needs to be done to increase the number of affordable homes available and the delivery of these must become a priority,” he explained.


Despite the number of houses being built increasing, overall construction output was flat and Andrew Bridges, managing director of Stirling Ackroyd, is still on the fence in relation to the long term impact of June’s referendum on the house building industry.

“We must not allow Brexit to distract from the urgent need to build more homes, especially in London and the South East, which are both facing an intense housing shortage. The Chancellor’s Autumn Statement must give housebuilders the confidence to get on with tackling this fundamental issue in our society and extend opportunities for first time buyers, such as Help to Buy. As a former property developer, the industry will be expecting Phillip Hammond to step up to the plate and back house builders,” he said.

Richard Carr on the other hand is confident that the industry – along with the country’s economy – will continue to prosper and grow following Brexit.

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