The ONS have released their Output in the Construction Industry June 2015 and Quarter 2 figures. These show that in Q2 2015, output was estimated to have increased by 0.2% compared with Q1 2015. Also that between Q2 2015 and Q2 2014 estimated output increased by 2.4%. This saw all new work increase by 1.0% for Q2 2015 driven by rises in Private New Housing of 3.9%, Infrastructure by 0.5% and Public Other New Work by 3.9%. For the year, output increased by 2.6% in June 2015 compared to Jun 2014.
Complementing the increase in construction output, the ONS have released their Interim solution for construction output price indices, quarter 2 2015. The results of this show that the interim output price index for all construction rose 1.3% in the year to June 2015, down from an increase of 1.7% May 2015.
The Construction Products Association have released their Construction Industry Forecasts for Summer 2015. The key points of the forecasts are that construction output is expected to increase 13.2% by 2017, with private house building being the key driver behind this growth as it benefits from a strong property market. Despite forecast increases in private house building contributing to growth, public house building is expected to fall by 10.0% in 2015, 5.0% in 2016 and remain flat in 2017.
The Markit/CIPS UK Construction PMI registered 57.3 in August, an increase from 57.1 in July and still well above the neutral value of 50.0. This increase has been led by the fastest rise in commercial work for five months. Overall this represents the longest period of sustained growth for seven and a half years.
Barclays published their Mortgages & Home Improvement Report 2015 which states that over half of UK homeowners would prefer to spend their money on home improvement rather than moving to a new property. UK homeowners claim to have added a collective £164bn to their properties through improvements, while living in their current homes.
The ONS House Price Index reports that house prices increased by 5.7% in the year to June 2015, up from 5.6% in the year to May 2015. Also, that on average, prices paid by first time buyers were 5.1% higher in June 2015 compared to June 2014. The Nationwide House Price Index reports that in August 2015 house prices increased by 0.3%. With annual house price growth slowing to 3.2% in August 2015 down from 3.5% in July 2015.
Bovis Homes announced their half year results for the 6 months ending 30th June 2015. These results show an increase in half year revenue, up by 9% to £350m, due to record numbers of completions. Also operating profit rose 6% from £51.2m to £54.3m.
Persimmon Homes also announced their half year results for the 6 months ending 30th June 2015. Their results show an increase of 31% in pre-tax profit to £272.8m, up from £208.9m with an increase in revenue of 11% to £1.33bn up from £1.20bn. The improved performance is attributed to the group’s focus on executing their operational objectives and delivering their 10 year strategic plan.
Housebuilder Redrow have released their annual report for 2015, showing a pre-tax profit increase of 53% to £204m in their full year results to June 2015. Alongside this they announced their revenue has broken through the £1bn barrier, with a 33% boost from £864m in 2014 to £1.2bn in 2015.