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Construction activity in the South East appears to be stabilising, having I initially been at the forefront of the UK’s construction recovery. Despite the region’s comparatively high levels of house prices and demand, private  housing output rose just 2% during 2014 while the value of starts went backwards. The commercial sectors pushed output higher during 2014, but weakness in approvals point to a moderation ahead.

Having moderated to 5% in 2013, growth in starts remained stable in 2014 with a 6% rise in the underlying value of projects started.

2014 also witnessed an 8% rise in detailed planning approvals, following double digit growth in the two years prior. This growth was fuelled by private housing and public non-residential projects. In the commercial sectors which fuelled recovery in the South East earlier than much of the UK, the value of approvals fell during the year.

The region will continue to benefit from the rising housing market, with high levels of demand and house prices expected to spur growth in new housing activity.

South East

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