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An increase in private builds fails to prevent further falls in construction

House building continues to fall as funding for social houses is cut

Activity in the construction sector fell by 1% in the three months to October compared with the same period in 2011 according to the Glenigan index which analyses the sector. This was despite a 58% increase in private sector activity. Social housing continued its seemingly endless slump, due to persistent cuts to funding.

The report predicts this pattern to continue over the coming years with the value of social housing starts falling to £3,807 in 2013 compared to £4,596 in 2011. Conversely the private sector is expected to continue its recovery with the value of new builds predicted to rise from £8,554 in 2012 to £9,302 next year.

An economist at Glenigan, Andrew Whiffin said: “Private housing has once again been the sector that’s stood out from the rest of the industry in a climate where growth is increasingly difficult to find. We believe that the growth in new projects we have seen over the last few months is down to house builders gearing up in anticipation of renewed housing market activity next year.”

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