The UK government has announced it will publish its new Construction Strategy next year. Sahel Majali looks at what we already know about the upcoming plan, and explains how it and other government construction initiatives could provide new opportunities for developers in 2016.
The UK’s construction industry has grown at a moderate pace throughout the second half of 2015. The Telegraph reported that the Markit/CIPS Purchasing Managers Index (PMI) for the construction sector measured 59.9 points in September 2015.
The index dropped to 58.8 points in October and fell further to 55.3 points in November 2015. Anything above 50 points indicates growth; therefore these figures show that the UK’s construction industry is growing, but the rate of expansion slowed throughout the second half of 2015.
The sector is set to receive support from the government. Whitehall is planning to publish a Government Construction Strategy for 2015 – 2020. This was originally supposed to be released this year, but according to Construction News, the paper will now be published in 2016. It has bene delayed to take into account the “recent changes in construction and infrastructure policy,” as well as “reduce waste, tackle bureaucracy and support economic growth through a more efficient construction industry.”
Whitehall is set to prioritise residential property construction in 2016. The UK is facing a chronic housing shortage, the Local Government Association has admitted that the UK needs to build 230,000 new homes per year. The government launched a Housing Commission this month to explore new routes to house building, so councils can enable the effective construction of more residential properties.
New opportunities for construction
The UK’s construction industry will be presented with a number of growth opportunities in 2016. The launch of the housing commission is sure to initiate new residential property construction projects next year. Meanwhile when Whitehall publishes its Construction Strategy for 2015 – 2020, we’ll see how it plans to roll out new infrastructure development programmes. These government initiatives should provide developers with a range of new construction projects in 2016.
Mid group are already actively delivering against the current HM Government Industrial strategy for construction 2025. Andrew Shepherd, the Mid Group Deputy CEO was a major contributor to this document and helped shaped the overarching vision. Once again, we will be actively engaging with HM Government to support hem in delivery of their aspirations for a vibrant UK construction market.
Mid Contracting UK
Mid Contracting UK has extensive experience across the nation’s construction industry. We have the expertise, skilled professionals and sector connections developers require to capitalise on the opportunities the UK’s construction market will present as we head into next year.