The Office for National Statistics (ONS) has reported that in July 2016, output in the construction industry was flat at 0.0% growth on June 2016.
However, compared with July 2015, construction output decreased by 1.5%.
Output in total new housing fell by -0.8% in July 2016 compared with June 2016. Compared to July 2015, total new housing output reported an increase in growth of 5.6%
Andrew Bridges, managing director of Stirling Ackroyd, said: “We’re not out of the woods yet. Despite the positive consumer data we’ve seen in the weeks and months since Brexit, it’s clear that construction output and housebuilding is flat-lining. The Bank of England’s decision to halve interest rates has helped to balance the ship in the very short term, but it is still too early to say what the longer-term impact of June’s referendum will be on housebuilders, the property market and the wider economy.
“We must not allow Brexit to distract from the urgent need to build more homes, especially in London and the South East, which are both facing an intense housing shortage. The Chancellor’s Autumn Statement must give housebuilders the confidence to get on with tackling this fundamental issue in our society and extend opportunities for first time buyers, such as Help to Buy.
“As a former property developer, the industry will be expecting Phillip Hammond to step up to the plate and back housebuilders.”
