By Legal Futures Associate Search Acumen
Monthly construction output increased by 1.7% in volume terms in March 2022; this is the fifth consecutive monthly growth and a record high in monthly level terms (£14,994 million) since monthly records began in January 2010.
Andy Sommerville, Director at Search Acumen, says: “The first quarter of 2022 has ended with a bang in the building industry. The figures for March report an 7.3% annual increase, which was the strongest annual rate since records began in 2014. This serves to highlight the rampant demand across the property sector for residential and commercial developments alike.
“Pricing dynamics in the construction industry have remained favourable, but the duration of these conditions, however, is uncertain. At some point, housebuilders will have to face up to a range of issues. These include changing building regulations, the end of the Help-to-Buy scheme, higher interest rates and declining real wages, which could all hit the market in the coming months.
“While the Construction Products Association (CPA) had previously forecast that construction output would grow by 4.3% in 2022, it is now predicting growth of just 2.8%, with a further fall to 2.2% in 2023. There is a real expectation that one or more of the challenges facing the industry will present a serious roadblock.
“As such, it is important that the task of future proofing the property industry is front and centre for all. We cannot expect the industry to withstand future shocks if time is not given to abolishing antiquated ways of working. This is everyone’s responsibility – from those involved in the construction process to lawyers tasked with completion of homes. We need centralised and digitised property information as this holds the key to creating a more resilient market.”