05/08/2013 02:09 PM
Forecasters at the organisation predict that industry output will grow by 2.2 per cent in 2014 swinging it back into recovery. One of the driving forces behind this shift is the housing market which is also expected to perform well over the coming year. Construction Enquirer reported that the CPA predicts the private housing sector to lead the recovery with infrastructure boosting activity adding to 4.5 per cent growth going into 2015.
Other areas such as rail construction and energy-related work such as nuclear, offshore wind and small renewables are also expected to play a part in the sector's recovery. London and the south-east of England are showing the strongest levels of activity thanks to a number of major contracts awarded in the region.
In terms of housing, homebuilder Taylor Wimpey recently announced a 40 per cent rise in profits which the company owing its success to a "healthy" housing market. Officials explained that they had seen an 11 per cent increase in revenues over the opening part of 2013.
One of the main factors behind these positive figures was the fact that more and more people are trying to get their foot on the property ladder. With schemes such as NewBuy and Help to Buy more first-time buyers are able to secure their their first home or even move up to a better home should they wish.
Noble Francis, CPA economics director, told Construction Enquirer: "Growth over the next 12-18 months is predominantly due to a surge in housing sector activity, which is benefitting from the Help to Buy scheme. Help to Buy has clearly stimulated demand and led to increasing supply from house builders. We forecast housing starts will rise 39 per cent by 2015."
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