Posts tagged housing schemes
Increased demand from first-time buyers coupled with the government’s increased investment in the housing market are driving new private housebuilding projects to grow by 40 per cent in the second quarter of 2012, resulting in more employment opportunities for people in the trades.
New data published by construction industry analyst Glenigan has revealed significant year-on-year growth in the underlying value of new private housing project starts in the first two quarters of 2012, compared to the same period in 2011.
Glenigan forecasts indicate that the underlying value of project starts will increase by 29% over 2012 providing further employment opportunities for builders and trade professionals, including electricians, plumbers and gas engineers.
Glenigan said the findings are giving a strong indication that confidence is returning to the private housebuilding market, paving the way for more jobs in the building construction industry.
Economics Director at Glenigan, Allan Wilén, said that despite weak economic conditions and a fragile banking sector, housing developers have seen an increased demand from first-time buyers and the government’s incentive schemes which have helped them to make a swift economic recovery.
Commenting on the sector’s future performance Mr Wilén said:“While the threat of an increase in interest rates and the end of the stamp duty holiday have stymied the market to a certain extent, we expect the sector to continue to grow through 2012 and 2013 as the wider economy begins to recover once more.”
The figures from Glenigan, compiled through comprehensive data collation and exhaustive research, reveal that London and the South East continue to dominate the market having accounted for almost a third of the value of all new private housing schemes starting on site in the first half of 2012.
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The Chancellor George Osborne has been urged by business leaders to allocate more investment on capital projects rather than on the current expenditure which will give boost to the construction industry and encourage economic growth.
Improved access to government funds, cutting red tape for businesses and giving greater investment to infrastructure projects are the key demands by business leaders. The call comes ahead of the Chancellor’s budget statement next month which is expected to make significant announcements for creating new jobs and boosting the national economy.
The Construction Products Association (CPA) has urged the Chancellor to cut VAT for domestic projects that will improve energy efficiency for thousands of homes across the UK.
Chief Executive at CPA, Michael Ankers, said that the Chancellor needs to allocate in the budget more capital spending for housing and infrastructure projects because it will give confidence to businesses and provide sustainable investment for growth.
Mr Ankers said: “The 2012 Budget provides the Chancellor with the opportunity to introduce a package of measures to stimulate the economy and deliver growth. This should include a further rebalancing of public spending away from current expenditure and into capital investment, as this will not only generate economic activity and employment but will increase long term productivity as a result of improving the infrastructure of this country.”
What would your suggestions be to the Chancellor Osborne to help businesses across the UK? Is capital investment the best way to create jobs and sustainable development for growth? Share your thoughts by leaving a comment below: