NEWS IN NUMBERS
Good news for industry output in 2025
20% The percentage by which tender prices costs are expected to increase over the next five years. Source: Building Cost Information Service
T he construction and property development sector is set to bounce back strongly in 2025, according to analysis by business finance brokers, Rangewell. After three successive years of declines in 2024, the prediction suggests good news for builders. Outstanding lending across the construction sector fell in: ● 2024 by 5.2% (estimation) ● 2023 by 7.2% ● 2022 by 4.0% The reduction in lending means there have been fewer new dwelling projects, with a 19.8 per cent drop in 2023-24 from the year before, with just 162,350 new dwellings. Positively, a lower national interest rate and reduced mortgage costs in
England means the cost of financing will also drop, leading to increased consumer demand and a stronger residential construction market, according to Rangewell. Alasdair McPherson, Head of Partnerships at Rangewell, said: “The good news is we’re already seeing improved confidence across the sector and appetites within the lending space have certainly improved during the second half of this year – and continue to grow. “With a further cut to interest rates likely in the coming weeks and the market starting to build momentum, we expect significantly positive uplifts into 2025, and are already seeing developers with good projects receiving significantly better lending terms than even three months ago.”
£32 Average hourly cost of a tradesperson in Q3 2024, up from £31 per hour in Q2. Source: Trade Costs Index by HaMuch
Brownfield passports proposed
R eforming the planning system so there are fewer restrictions is an aim of the government, which is now favouring brownfield sites for housing developments. In the national planning policy framework consultation, the government noted its intention to introduce ‘brownfield passports’ that would mean
29 months The last time UK construction grew this fast, with a 57.2 index in September, and above the neutral 50.0 threshold
for the seventh month. Source: S&P Global UK Construction Purchasing Managers’ Index
swifter approval for development proposals when design and quality standards are met.
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Master Builder
www.fmb.org.uk
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