Weekly Economic and Construction Update – 11 November 2022

Date Published

11 November 2022

Document Type

Category

Author

TDUK
Summary

According to the Office for National Statistics (ONS), total construction output in September was 0.4% higher than in August after a slight dip in activity during Summer. It was also 5.7% higher than a year ago and it remained 3.2% higher than in January 2020, pre-pandemic.

The summary chart of output in the key construction sectors that industrial activity remains the strongest of the key construction sectors but began to fall in September (-2.9%). Private housing rm&i output continued to fall from a high base in September (-1.1%) but infrastructure activity rose in September (+2.8%) and continues to be robust, considerably stronger than pre-pandemic. Private housing new build fell marginally (-1.4%) but remained higher than pre-pandemic whilst, conversely, commercial output rose by 1.0% in September but remained 24.8% lower than in January 2020.

Key Information

The RICS UK Residential Survey results point to a further deterioration in market conditions in October, with the fall in buyer demand and agreed sales accelerating. House price growth ground to a halt at the national level.

Persimmon reported for the period 1 July 2022 to 7 November 2022 that rising interest rates and broader economic uncertainty are clearly impacting mortgage lending and customer behaviour and this is reflected in recent weekly sales rates and its forward sales position.

Taylor Wimpey reported that sales rates have been affected by wider economic uncertainty. Its net private sales rate of 0.74 homes per outlet per week for the year to date compares with 0.95 a year ago and it was 0.51 homes per outlet per week in the second half of the year to date compared with 0.91 a year earlier, reflecting customer response to heightened levels of economic uncertainty.

Case studies

This tiny two-bedroom house, only 75 square metres on plan, sits unobtrusively within the confines of an old brick wall in Deptford, London.

Tucked behind two rows of tall 1840s Victorian villas in Notting Hill, London, is a modern single-storey house with a truly dramatic roof, its exposed timber frame rising in an elegant double curve to a glazed oculus.