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House building picks up

House building in the UK appears to be on the up as chartered surveyors across the country are reporting growth in Q3 2013 according to the RICS construction market survey.

A record net balance of 41% more respondents reported rises in privately-funded housing projects compared with Q2 2013 at 31%. It is also the first time that every part of the country has reported growth since the beginning of the market crash six years ago.

Simon Rubinsohn, RICS Chief Economist, said: “While it’s certainly good news that construction - and especially house building - is finally on the rise right across the UK, we are certainly not out of the woods yet. Critically, we’re still way behind in terms of building enough homes to meet the nation’s growing housing need and overall construction projects are at a historical low. In the face of this challenge, it is a particularly concerning that we are already receiving reports of some skill shortages as well as capacity constraints for some building materials such as bricks.”

The overall construction sector also saw an increase in workloads during Q3, rising at their strongest rate since the summer of 2004 with a net balance of 31%.This growth was largely driven by private commercial and industrial developments as funding finally begins to filter through to actual works taking place.

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