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Housing construction is in overdrive

The latest Markit/CIPS UK Construction PMI figures report the sharpest rise in housing construction since November 2003.

According to the latest figures from the Construction Industry Training Board, the building industry faces an average annual shortfall of 1,790 workers a year to 2019.

CITB claims London needs almost 9000 extra workers to cope with a recovering construction market.

KPMG UK head of infrastructure, building and construction Richard Threlfall comments: “The figures show that construction market activity is going up a gear, with residential activity in overdrive. The increase in housing construction is an interesting case study in the delayed response of the market to Government initiatives, with activity picking up just at the point that government has started taking steps to cool the market ignited via Help to Buy.

“Record levels of job creation is welcome news, but it’s no surprise given the high levels of construction market activity.

“New contracts are increasingly being farmed out at cost plus rates to offer some relief to main contractors who are still suffering from legacy commitments. It’s good to see more subcontractor capacity coming into the market, but another month of near – record level subcontractor rate increases indicates that there is still a substantial shortage of supply.”

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