ONS construction output commentary

Kevin Reid, Cruden Group managing director

THE latest Office of National Statistics (ONS) report on construction output has revealed that while overall output was flat over a three month period, new work has increased.  The increase in new work is said to be driven by growth in private commercial work and public housing, which saw growths of 2.2% and 8.4% respectively.

Kevin Reid, chief executive of Cruden Group commented, “Despite continued political and economic uncertainty, construction output has not slowed down this month. This is reflected within the housebuilding sector, where demand for new homes is outstripping supply, as the sector tries to plug the housing shortage gap. However, tackling this problem is being compounded by the growing number of housing developments getting stalled in the planning process, with latest figures showing a dramatic 44.5% drop in the number of homes receiving planning consent in the last quarter of 2018.

"More encouragingly, the amended Planning (Scotland) Bill has finally passed through Parliament. I hope this will result in much more streamlined and delivery-focused planning system. Importantly, it needs to be a catalyst to get more housing developments underway and in turn see more investment and employment opportunities in Scotland – ensuring our communities have the new homes they need for a successful future.”

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