Demand For New Homes Drives Britain apos;s Construction Boom

The demand for new homes has driven up Britain's construction boom with the industry growing at its fastest monthly rate in more than six years.   
Construction work was massively scaled back last year during the first Covid-19 lockdown in March - with countless builders self-isolating or shielding as case numbers spiraled out of control. 
But the industry quickly bounced back as the year went on - with the sector accelerating since February and creating more jobs than at any point in more than two years. 
The IHS Markit/CIPS Purchasing Managers' Index (PMI) rates different sectors of the economy by surveying businesses each month. Any score above 50 is said to show a growing sector.
The construction sector Aquarienbau jumped to 61.7 in March, the highest score since September 2014, and up from February's already healthy 53.3. 
The spike saw the biggest increase in job creation since December 2018.
A spokesperson from the Home Builders Federation told MailOnline that the trade body supports construction sites reopening as long as social distancing guidelines are followed. 
The federation's Steve Turner said: 'Demand for new homes has remained extremely strong since the lockdown was lifted and builders are ramping up their construction to meet that level of demand.
'The building trade closed down last March despite the fact that the Government said that construction could remain open.  
'As long as there is that general improvement in regards to coronavirus then sites can remain open.' 
The demand for new homes has driven up Britain's construction boom with the industry growing at its fastest monthly rate in more than six years (file image) 
The IHS Markit/CIPS Purchasing Managers' Index (PMI) rates different sectors of the economy by surveying businesses each month. Any score above 50 is said to show a growing sector. Pictured: The construction industry
The construction sector jumped to 61.7 in March, the highest score since September 2014, and up from February's already healthy 53.3
Tim Moore, IHS Markit economics director, said: 'Improving confidence among clients in the commercial segment was a key driver of growth, with development activity rebounding in sectors of the economy set to benefit the most from the improving pandemic situation.
'The increasingly optimistic UK economic outlook has created a halo effect on construction demand and the perceived viability of new projects.'
Housebuilders scored 64 on the index, their highest since last June, while commercial construction was assigned a score of 62.7 and civil engineering hit 58, their highest scores since the second half of 2014.
Projects delayed because of Covid-19 have been restarted in recent weeks, especially for clients in the hospitality, leisure and office development sectors, the survey's authors said.
Large infrastructure projects helped invigorate the sector as did a rise in new home sales, which is likely due to temporary cuts in tax for homebuyers.
However, March also had the highest increase in the cost of buying materials for the sector since August 2008. Companies pointed towards Brexit and the pandemic as the driving forces behind this.
Construction workers lift a steel beam into position at the 8 Bishopsgate development in the City of London on April 1
Max Jones, director in Lloyds Bank's infrastructure and construction team, said: 'Confidence is high among contractors. Little wonder, with infrastructure work boosting order books and enabling firms to plan ahead.
'Many are using the safety of government-led pipelines to invest in adapting their ways of working to be more sustainable and reduce on-site waste, which will stand them in good stead for the future.'
Group director at the Chartered Institute of Procurement and Supply Duncan Brock told : 'Construction was full of the joys of spring in March with a sudden leap into solid growth fuelled by across-the-board rises in workloads in all sectors.
'The commercial pipeline was particularly spectacular giving its best performance since late-2014.' 
One housing development whose construction was delayed by the pandemic saw the world's first transparent Sky Pool - suspended 115 above  between two tower blocks - near its completion. 
The aquarium-style pool was lifted into place in September by one of the largest mobile cranes in the world after making a 4,720-mile journey from its place of construction in Colorado
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The world's first sky pool, a staggering see-through stretch of water that will float between two luxury skyscrapers under construction in London
A crane lifted the pool into place between the two buildings on September 28 this year, ahead of its opening in Spring 2021
The aquarium-style pool was lifted up in September by one of the largest mobile cranes in the world after making a 4,720-mile journey from its place of construction in .
Swimmers will be able to enjoy views across central London while completing lengths between buildings in a new residential neighbourhood in Nine Elms, Vauxhall.
The 'Sky Pool', which accompanies a roof-top spa, summer bar and orangery, is the centre piece of the £1 billion development next to the new US Embassy. 
It is not known how much the pool itself cost.  
The buildings connected by the Sky Pool will be subject to normal movements inherent to ten-storey buildings including wind sway and foundation settlement. But the pool structure can deal with these movements by not being rigidly connected at both ends as it can slide while maintaining water-tight integrity (pictured)
In June, the construction industry PMI index showed the UK economy was returning to normal as it surged to 55.3 - up from just 28.9 in May and its record low of 8.2 in April.  
The influential survey of purchasing managers found the steepest pace of growth for the construction sector since July 2018, as supply chains reopened following stoppages and business closures.
Around 46 per cent of survey respondents reported an increase in activity in residential building, while only 27 per cent said they experienced lower activity.
Commercial work and civil engineering activity also returned to growth in June, although the rates of expansion were softer than those seen for house building.
New business volumes increased marginally for the first time since February. 
But in February this year, Housebuilder Redrow warned that a growing number of self-isolating workers is impacting construction - as it posted higher half-year profits on record revenues.
The group said it was seeing 'some impact' on work due to self-isolating sub-contractors who were unable to work on building sites during the third national Covid-19 lockdown.
Matthew Pratt, group chief executive of Redrow, said: 'Operating within a further national lockdown continues to present challenges.'
The comments came as the company reported an 11 per cent rise in pre-tax profits to £174million for the six months to December 27, as revenues topped £1billion - up 20 per cent. 
Mr Pratt added: 'There has been some impact on build as an increasing number of sub-contractor colleagues are unable to work whilst self-isolating.'
Redrow said: 'We expect to see this situation improve as the country's overall Covid-19 infection rate decreases.'
The company said its sales centres were open on an appointment-only basis, with comprehensive coronavirus measures in place, while most office-based staff were working from home.
The group saw legal completions jump 20 per cent to 3,065 over its first half as its refocus away from London towards the regions pays off. 
The construction sector boom, as reported in the PMI rates released today, is paired with the biggest increase in job creation since December 2018.
It follows reports earlier this year that claimed nearly two million people have been unable to work for at least six months after losing their jobs in the pandemic or being placed on furlough. 
The Resolution Foundation put the figure at 1.9million - compared to official statistics showing 1.2million.
It said one in five of these people fear they will remain jobless or their roles will vanish when the taxpayer-funded furlough scheme stops on April 30.




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