Construction News and Jobs in Northern Ireland

Increase in number of new houses drives 5.5% surge in NI construction output
Tue - February 26, 2019 10:50 am  |  Article Hits:4384  |  A+ | a-
CSR - NI Housing Construction
CSR - NI Housing Construction
An upsurge in new house-building by private developers contributed to a 5.5% increase in construction output during the third quarter of last year.

The latest Northern Ireland construction bulletin showed output in the sector rose 2% on the same period in 2017.
 

The latest Northern Ireland construction bulletin showed output in the sector rose 2% on the same period in 2017.

Despite fluctuations, the Northern Ireland Statistics and Research Agency (NISRA) said the total volume of construction output in Northern Ireland had been on an upward trend since the fourth quarter of 2013.

The increase in overall output between July and September last year was driven by a 7.2% rise in new work, with a 1.4% increase in repair and maintenance.

Activity in the housing sector increased by 9.4% over the three months, and was 10.7% higher than in the same quarter in 2017.

However, while July to September saw the biggest quarter-on-quarter rise in six years, housing output still remains well below historic levels.

The upsurge was limited to the private sector, with output in public housing dipping over the quarter.

As a sub-sector, housing made up 40.9% of all construction output in Northern Ireland during the third quarter, overtaking the 'other work' category in the output measure for the first time since early 2013.

Among the biggest new housing projects started during the quarter was a scheme in Bangor, where Hagan Homes is building 350 new homes. Work on the Helens Wood project at Rathgael Road got under way in August. The development is part of a £90m project approved in 2016 for 550 new homes.

Lisburn is another area identified for major residential projects. Upwards on 750 homes are currently being proposed for the west of the city.

Neal Taylor, from Belfast business advisory firm Grant Thornton, described the 5.5% rise in construction output recorded during the third quarter of 2018 as "significant".

"Given that the traditional July holidays fall within the period, construction levels in the third quarter can tend to be leaner or flat, compared to the rest of the year, but that is not what we are seeing here," he said.

"The volume was also 2% higher than during the same period in 2017, illustrating a continued upward trend of rising output that has prevailed since the end of 2014.

"That said, it is still unknown how Brexit and wider political uncertainty will impact the industry going forward, particularly for large infrastructure and commercial projects.

"The subdued sales expectations of surveyors, outlined in the recent UK Residential Market Survey, adds further context."

Credit : Belfast Telegraph

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