Construction is back, in a big way. In fact, it's estimated that £375bn is due to be spent on infrastructure between now and 2030.
At a recent trade conference, it was discussed that the outlook for the housing market and commercial construction was positive and there were lots of reasons to be cheerful, although there are areas which need to be avoided. According to experts, the visibility provided to the construction industry would give investors much more confidence when putting funds into the UK infrastructure.
Investors have already been showing their support for the industry, with six major insurers planning to invest £25bn in UK infrastructure over the next five years, although there has been questions as to whether this will occur. As the cost of living has increased and there is more pressure on the Government tot provide affordable housing and affordable living, it has been questioned whether the best use of money is on infrastructure. However, it has to be considered an increase in infrastructure would mean an increase in jobs, which is better for the economy.
The renovation of the great British High Street is another aim for the construction industry in 2014. At a political conference towards the end of last year, business panellists agreed to capping the business rate increases for 2014/15. In the past, this would increase year on year meaning businesses were never sure about how much it was going to rise. However, the business rate will be capped at two per cent.
It was discussed that the future of the high street was uncertain, as the way people buy things has changed. With the increase in Internet use, people are less likely to go to the high street, meaning less people that physical shops are at danger of closing. It is believed that community and leisure facilities are going to be more popular than the traditional high street.
The 'Help to Buy' scheme is also going to feature heavily in 2014, it has been suggested. As more people can afford housing, more homes will need to be built thus leading to more jobs in the industry. However, it has been suggested that the 'housing bubble' is set to burst with house prices in London set to grow by 10 per cent a year over the next five years. If this is the case, there is worrying times ahead as this is likely to slow down construction and further increase living costs.
What can you see changing in construction over the next twelve months? Have you noticed an increase in jobs already?