U.K. Construction Industry Growing

U.K. Construction Industry Growing

Residential News » Europe Residential News Edition | By Francys Vallecillo | February 11, 2014 8:38 AM ET

The U.K. construction industry has enjoyed three consecutive quarters of growth for the first time since the financial crisis, the Financial Times reports. 

In a survey of approximately 1,000 U.K. construction companies, the Construction Products Association said there were more respondents who reported growth in activity during the last quarter of 2013 than those that reported lower activity. The difference was 15 percent, which although positive, represented a slowdown, the FT reports. 

"Growth was driven by the housing sector, though this was partially offset by a drop in repair and maintenance work," Noble Francis, economics director at the CPA, said in a statement. 

In the survey, CPA found construction groups experienced increasing costs in the final quarter. 

The boost in the construction industry should bode well for Britain, which had the highest number of new homes built in 2013 since 2007.  

A total of 133,670 homes were built last year, increasing 28 percent from 2012, according to the National House Building Council. The recovery is viewed as "broad-based" rather than concentrated only in London.

Approximately 250,00 new homes are needed to meet demand, Bloomberg reports. That compared to 2007, when 200,000 homes were needed. 

In London, 26,230 new homes were delivered in 2013, increasing 60 percent from the prior year and the highest in 26 years.

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