Private sector housing starts will grow by 2% in 2012 and then increase sharply in the next few years, according to the latest forecast by the Construction Products Association (CPA).
The forecast says growing consumer confidence and economic recovery in 2013, combined with the effects of the government’s new housing strategy, will boost starts by 29% between 2013 and 2015.
The CPA says housing starts were one of the few areas of optimism, with overall construction activity set to fall by more than 5% in 2012 and remain flat throughout 2013.
It says private sector housing work will be offset by a sharp fall in public sector housing.
“As a result, the number of new homes started in 2012 is forecast to be 5,000 fewer than 2011,” it said.
Public sector construction activity is predicted to dip, with work on schools, hospitals and other non-housing work to fall by 23% compared with 2011.
The CPA says education construction will fall by 25% in 2012, while health sector work will dip 15%. Infrastructure work is predicted to rise 20% by 2015.
