Housebuilding ready to bounce back

The housebuilding sector had a torrid September according to the latest update from the Chartered Institute of Purchasing & Supply and Standard & Poor’s, but Glenigan’s construction industry research shows plenty of work scheduled to start in the coming year.

A slump in new house building was the key cause of the fastest decline in the CIPS/S&P UK Construction Purchasing Manager’s Index since May 2020, but 41% of respondents did predict a turnaround in the year ahead compared to 17% expecting a decline.

And Glenigan’s construction market data also shows that 44,969 high value private housing developments (over £250,000 in value) are due to start in the 12 months from 17 October 2023 to 17 October 2024.

Planning ahead

Developments comprised mainly of some type of house provided nearly half of the scheduled starts with 24,904 projects due to begin construction in the coming year.

Some of these schemes are still in the early stages of the planning process such as Gladman’s plans for 170 homes at Warrington Road in Lymm, Cheshire (Project ID: 23285061). Outline plans have been submitted and work on the £22.9 million scheme could start next September according to Glenigan’s construction industry research.

Developer Bellcross Homes has submitted an outline planning application for a £50 million project to build 700 houses in Hitchin (Project ID: 16306244). If permission is secured, construction work is expected to begin in May 2024.

Flat out

Of the near 45,000 residential projects due to commence in the next year, there are 22,363 developments of flats. These apartment-led schemes include the £100 million Phase 2-3 of the Manor Road Quarter development (pictured) in Newham, East London (Project ID: 18040097).

London was hit earliest by the recent downturn in the housing market but schemes are still going ahead.

Tenders have been returned for a £30 million plan from Tepbrook Properties and JH Rhatigan to build 96 flats and an Asda supermarket at Cricklewood in north London and a start is due by the end of this year (Project ID: 17042121).

Work should start imminently on a £37.6 million regeneration of the Canning Town estate in East London with Hill Group in place to build 147 homes (Project ID: 22300077).

Private rented boost

London has been at the forefront of the recent boom in the build-to-rent sector (BTR), which has remained relatively resilient during the current downturn.

Glenigan’s construction market analysis has identified 311 BTR schemes due to start in the coming 12 months.

New schemes due to commence include the development of 439 flats at the Yards in Stratford (Project ID: 13073746).

Elsewhere, the Leeds Urban Village will provide 1,012 homes including 478 BTR units on a former goods’ yard at Shannon Street (Project ID: 19033857). Contractors are due to return bids for the construction contract on October 20 and Glenigan’s construction market research shows that work should start next spring.

With a host of schemes across the country being developed in the pipeline, the residential sector should be able to bounce back quickly.