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Residential construction output increased by 5% in 2018 to £74.2bn

Preliminary data indicates that total residential output increased by 5% in 2018 to £74.2bn, according to the latest Construction and Housing Forecast Bulletin from AMA Research. This was underpinned by an 8% increase in new work but with residential RMI remaining static at £30bn. 

Whilst both housing starts and completions have remained positive in 2018, there is some evidence of a slowing of the growth rates for both starts and completions into H1 2019. In addition, the rate of annual house price growth has also slowed in Q1 2019. The Spring Statement in March 2019 also provided good news for the public housing sector with the confirmation that up to £3bn of borrowing by housing associations in England will be made available under the Affordable Homes Guarantee Scheme in order to support the delivery of 30,000 affordable homes.

Future prospects for the new housebuilding sector in Great Britain into the medium-term will be heavily influenced by the issues of affordability, availability of mortgage finance and levels of consumer confidence the report added.

However, the outlook for residential construction remains positive, if modest, with 21% overall growth in output currently forecast between 2018 and 2023. 

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