Surge in housebuilding helps construction sector’s turnover jump 6%

The construction sector’s total turnover jumped 6% year-on-year to £218bn in 2014, according to new data from BNP Paribas Leasing Solutions.

housbuilding helps construction
Construction sector’s total turnover rises 6% year-on-year to £218bn.

The UK arm of the European leasing specialist says the surge in new orders has come from the housebuilding, commercial property development, and infrastructure sectors.

It adds that construction turnover in the UK in 2014 was 20.7% above the low of £180bn that was recorded during the recession of 2009.

The construction sector generated £74.6bn in new build project orders in 2014, up from £65.4bn in 2009.

And residential building firms are forecast to further increase their orders for new work as a result of the housing shortage and government support for first-time buyers.

To cope with the increased demand, firms from all areas of the construction sector increased the levels of finance raised through leasing by 19% last year to £1.68bn from £1.41bn the previous year, according to the data from BNP Paribas.

“UK construction firms are seeing high levels of demand, and need to access the machinery they need to complete projects efficiently.  Leasing is helping them to deliver new homes, new commercial buildings and infrastructure, and ultimately create new jobs,” say Tristan Watkins, the head of BNP Paribas’s UK leasing arm.