Not since November 2003 has the home construction sector seen such prominent activity and growth. The housing sector was also one of the most significant in the broader purchasing managers index (PMI), which indicates strong recovery in this market.
As residential construction continues to pick up speed, the economy will continue to grow as more and more individuals are getting jobs, buying homes, and spending money.
Housebuilding is currently at approximately 100,000 units per year.
“Construction is no longer the weakest link in the UK economy. The third quarter of 2013 ended with output growth riding high amid greater spending on infrastructure projects and resurgent house building activity,” explains Tim Moore, senior economist at Markit.
The PMI has risen for the last five months consecutively and the housebuilding industry has been hiring new workers at the fastest pace in six years. The industry is close to hitting a three and a half-year high.
Just last week the UK government announced modifications to the second phase of the Help to Buy scheme, with the Bank of England having authority to recommend changes in an effort to deflate the housing bubble.
In addition to a boom in the industry and more jobs, house prices have risen by 3.3%.