Market Trends of UK Construction Industry
Increase in GVA of construction Industry
- Construction is a sector where the UK has a strong competitive edge. The UK has world-class architecture, design, and engineering expertise, and British companies are leading the way in sustainable construction solutions.
- Changes in the international economy are creating new opportunities for Britain. To help boost economic recovery, the government is doing all it can to help British businesses grow and have the aspiration, confidence, and drive to compete in the global market. This includes reforming the planning system, ensuring funding is available for crucial infrastructure projects, and supporting the housing market through critical initiatives such as the Help-to-Buy Equity Loan Scheme and the Funding for Lending Scheme.
- The gross value added (GVA) to the construction sector in the United Kingdom in the second quarter of 2022 was more than four billion British pounds higher than in the corresponding period of 2021, according to the Office for National Statistics (United Kingdom). The GVA of this sector dropped to GBP 20 billion (USD 25.6 billion) in the second quarter of 2020 due to the COVID-19 pandemic, marking the sector's lowest point in a decade. Out of all the subsectors in the United Kingdom construction industry, private housing was the one that made the most money.
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Private Housing Share is the Highest in the United Kingdom Construction Industry
- Private housing was the most significant sector within the construction industry. Nevertheless, housing and non-housing repair and maintenance together amounted to almost 39 percent of the construction output in 2022, according to Office for National Statistics (United Kingdom) data. The output volume of infrastructure grew during the past years, surpassing the construction of commercial buildings.
- The number of households occupied by private renters in England has increased gradually since 2000. From two million in 2000, households reached 4.61 million in 2022. The private housing sector was forecast to see further growth in the current year. That industry segment was expected to grow between three and five percent annually in the coming years. The average price of houses in the United Kingdom has also been increasing significantly.
- According to the Office for National Statistics (United Kingdom), private rental prices paid by tenants in the UK rose by 4.4% in the 12 months to January 2023, up from 4.2% in the 12 months to December 2022. Annual private rental prices increased by 4.3% in England, 3.9% in Wales, and 4.5% in Scotland from 12 months to January 2023. In England, the East Midlands saw the highest annual percentage change in private rental prices from 12 months to January 2023 (5.0%), while the West Midlands saw the lowest (3.9%). London's annual percentage change in private rental prices was 4.3% in the 12 months leading up to January 2023.
