Rising activity in the housing market empowered by boost from government loan schemes has led to consistent growth in the UK construction sector in March, 2014. A report suggests that such a growth accompanied house builders’ confidence to highest levels after the financial crisis.
Experts say that the rising house building curve was the leading driving force behind growth in the construction sector. It drew winds from the greater demands for new development projects and low mortgage rates.
Tim Moore, senior economist at Markit opined that the rise in residential construction was the sharpest against the last ten years statistics and it was empowered by supportive funding conditions. The government loan schemes also provided additional boost and was also a leading factor in this regard. The house builders seemed positive and was optimistic about the outlook for the coming year since about 59% of the respondents were of the view of a rise in construction activity whereas only 5% forecasted a reduction. This was a record confidence level ever since January 2007.
According to the reports, Moore said that commercial building activity also showed positive growth indications in March although it was slightly below January’s level, which was the highest since 2007.