UK construction activity will continue to decline for at least the next two years, followed by only weak growth in 2013, according to the latest industry forecasts published by the UK-based Construction Products Association (CPA) on July 4.
The CPA foresees that British construction output is expected to fall 0.5 percent this year, followed by a greater fall of 2.8 percent in 2012. In 2013, output will be broadly flat with just 0.2 percent growth, before a return to significant growth of 3.4 percent in 2014.
Noble Francis, economics director of the Construction Products Association, said, "On a positive note, private housing is expected to grow 62 percent over the forecast period. However, until 2013, we will still be building less than half the homes needed to meet the number of new households created each year. These levels of house building will exacerbate the existing difference between supply and demand, leading to an additional housing gap of more than 600,000 homes in just five years."