On the face of it the construction sector performed exceptionally well last year, but there are signs that the industry is experiencing something of a slowdown.
The Royal Institution of Chartered Surveyors (RICS) revealed that although the private housing and private commercial sectors saw output increase by 13 per cent and nine per cent respectively in 2016, this isn’t the whole story.
According to the organisation, there was a noticeable slowdown in both sectors following the UK’s vote to leave the EU in June. In the final six months of 2016, output in the private housing sector reduced to three per cent from 11 per cent, while in the private commercial sector it fell from seven per cent to two per cent.
RICS suggested that this reduced activity could be as a result of developers waiting to see what happened with the UK’s plans to leave the EU before pushing ahead with projects.
However, it’s not all bad news. Earlier this year, Chronicle Live reported on predictions by KPMG that the construction sector in the north-east of England would thrive in 2017.
Affordable housing developments, as well as growing demand for student accommodation in cities like Newcastle were cited as the main drivers for the sector in this region.
Giles Taylor, head of property and construction at KPMG, told the newspaper that there’s also “a healthy pipeline of commercial developments across the region”.
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