Comparing Apples with Oranges
Extract from an interesting article in UK construction week.
London’s homebuilders have been outpaced by the rest of Great Britain as investment in housebuilding dropped to its lowest value in six years. Residential contracts awarded in London in 2017 were 34% lower than the value awarded in 2016, in contrast to the majority of regions outside of the capital that experienced growth.
The latest data has come from the Regional Construction Hotspots in Great Britain 2018 report from industry analysts Barbour ABI and the Construction Products Association, which highlights the levels of construction contract values awarded in 2017 across all regions of Great Britain. Hotspots and coldspots identify the areas where contract awards were significantly above or below previous years, highlighting pockets of activity or contraction.
Comparisons like this are only valid if the market conditions in each area are equal. Overseas investors, tenure, size and complexity of sites in London versus regeneration projects and national regions coming on strong later in the sectors economic cycle all contribute to the swing. #housebui