Posted on 21/11/2016 by Lee Hiskett
Earlier this year the Financial Times reported a 40% increase in new / luxury house building with developers continuing to forge ahead despite falling property prices in the area. North London will see an increase of well over 10% of these luxury new builds but what does this mean for North London plant hire?
Given that costs are spiralling, London is reported to now be the second highest globally for construction costs. Despite record costs impacting the construction industry as a whole, we are still seeing a steady rise in the North London plant hire market.
In some Central and South London areas, developers are having to renegotiate with planners on the basis that increased costs are now making their projects unviable and others reporting projected profits reducing by as much as 90%. Investment from Chinese property investors does not seem to have abated and this has, in part helped to keep the construction industry and in turn the North London plant hire sector bouyant.
The CITB has determined UK construction as whole will grow by 2% for the next 5 years, down from 2.5% placing the UK higher in terms of growth, post Brexit, than that of our EU counterparts where growth has dropped by 0.9% to just 1.5% (source. Eurostat)
In the last financial year, more than 200,000 new homes were built resulting in a 52% increase in housing supply over the past three years. New government figures show that overall housing production between April 2015 and end of March 2016 was up 10% to 200,070 which indicate the govt's target of 1 million new homes for this parliament is within reach.
Despite the predicted doom and gloom the UK construction industry seems set to not only weather yet another storm but to outgrow the EU. Increased costs, Brexit, falling prices have not impacted the North London sector as much as predicted and the continued demand for both residential and business property will see North London continue to grow.