The NHBC has reported that private sector registrations were the sole driver of UK housing growth in Q2 2014 with registrations rising 9% to 27,527 during the quarter against Q2 2013.
During Q2, South East England saw the largest rise in registrations. These climbed 48% to 6,434 compared to Q2 2013. The East Midlands also experienced a strong rise of 38% to 3,708 registrations.
In June, total registrations across the UK lifted 14% to 11,726 against the same month last year.
Also, according to the Office for National Statistics (ONS), new housing output increased 17.9% in June compared to the same time last year and that new housing development had recently been the main provider of growth in all new construction work.
The ONS data, covering Great Britain, also showed a 1.9% rise in new housing output in June compared to May, with a 3.5% increase in Q2 2014 against Q1 2014.
The ONS said that the quarter-on-quarter rise was due to ‘three individual months of positive growth’, which brought the level of new housing to its highest point since Q4 2007. Output across the construction industry increased 4.8% year-on-year. In contrast, no growth was registered in Q2 2014 against the previous quarter. But month-on-month (June compared to May), overall output rose 1.2%.
These statistics supported the Construction Products Association’s (CPA) Summer Forecasts, which said that private housing starts are set to increase by 18% this year to 134,170 units.
The CPA believe that over the next two years the construction industry will grow approximately 10% and contribute almost £11 billion to the UK economy. The private housing sector is expected to grow 10% in 2015 followed by 5% growth every year to 2018.
By David Mote, Editor