Why the future is bright for UK construction

FROM STRENGTH TO STRENGTH

A "NEW DEAL" FOR BRITAIN

"Build, Build, Build" was the Government's response to combating the global economic slowdown brought on by the COVID-19 pandemic. The rhetoric 'Build, Build, Build' were the prime minister's words when announcing the Government's plan to invest £5bn into capital investment projects aiming at accelerating infrastructure projects and fuelling jobs. The subsequently named 'infrastructure revolution' began with Chancellor Rishi Sunak's March 2020 Budget, where he revealed the Government's plan to spend £640bn on infrastructure over the next five years. In his speech to parliament, Sunak rightly stated to MPs, "We need to build the infrastructure that will lay the foundations for a new century of prosperity. We need to grab the opportunity to upgrade, to improve, to enhance, to level up. That starts today with the next part of our plan as we get Britain building."

HEEDING THE GOVERNMENT'S CALL

Sunak's investment pledge provided much-needed reassurance to the construction industry, who took Johnson's proclamation at face value, and the results speak for themselves. For example, figures from the National House-Building Council (NHBC) reveal that in Q4 of 2020, the housebuilding sector registered 39,749 new homes, which is just 2% lower than in Q4 of the previous year, despite the pandemic's impact.

Source: NHBC

A recent survey by IHS Markit found that in February 2021, the industry regained its position as the fastest-growing, major category of private-sector output, thanks to the Government's Covid-19 vaccination programme. New order volumes increased for the ninth consecutive month, coinciding with the largest rise in commercial development activity since last September.

INVESTING WITH CONFIDENCE

With ongoing stock market volatility across the world, "bricks and mortar" investments are currently amongst the safest option for anyone looking to make good returns. Especially given the importance the Government is placing on the construction industry as a wealth generator. Its commitment to infrastructure is extremely positive and necessary given the shortage of good quality homes in the UK. Clearly, the Government is doing its part creating the right conditions for construction to thrive, but now investors need to step forward and do theirs.