Housing starts rise as prices strengthen

The latest Glenigan index shows an increase in both social and private sector projects.

Allen Wilen, economics director at Glenigan, attributed the rise to the resumption of work on stalled projects and strengthening house prices.

‘Many projects stalled by bad weather in January and February have now started,’ he said.

‘House builder confidence has been boosted by rising house prices and property transactions seen since last summer.’

The rise in residential work is in contrast to non-residential construction, which is down 2 per cent on last year, and civil engineering, which is down 44 per cent.

Overall there is wide regional variation in construction work with growth seen in the midlands and Yorkshire and the Humber, and double digit falls recorded in the north west, south west and south east.

Mr Wilen said private sector work is expected to increase during the course of 2010, but warned that the public sector has ‘begun to lose momentum’ and could be hit by the general election and expected funding cuts.

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