Tradesmen could be in for a bumper 2017 after housebuilding companies reported rising demand for new homes.
Persimmon, the Yorkshire building firm, booked a 15 per cent rise in sales during the second half of last year, citing rising consumer demand for new homes and the effect of historically low mortgage rates.
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Shares in Persimmon rose by 5.41 per cent on the back of the news.
Could this spell a busy 2017 for tradesmen?
Booming interest in new build properties could spell good news for tradesmen, following a tough 2016 for the construction industry.
Figures published in October last year showed a decline in construction, which accounts for six per cent of UK GDP, amid uncertainty following the EU referendum.
But Persimmon’s results suggest that a resurgence could be in the offing for the sector, which could also benefit from new housebuilding measures announced in the Autumn Statement.
Chancellor commits to £1.4 billion housing fund
In November, Chancellor Philip Hammond set out plans for a £1.4 billion new housing fund, which the government said would help with the construction of 40,000 new homes.
But the rate at which new homes are being built is still well below what is necessary, according to reports. In August, housing charity Shelter claimed that the government will miss its target of one million new homes by 2020 by more than a quarter unless major new steps are taken to boost construction.
Who stands to gain from the rising demand for new homes?
Tradesmen and construction workers, including bricklayers, plumbers, groundworkers, and painter decorators, are likely to see a boost from rising demand for new builds. The industries are also likely to be buoyed by new figures released this week suggesting an uptick in the construction industry, following October’s downturn.
The latest Markit/CIPS survey indicates that new orders in construction rose in December at their fastest rate for 11 months, hinting that 2016’s difficult trading conditions may be easing.