UK Construction Sector Sees Fastest Growth in Two Years

The UK construction sector has seen a significant surge in growth, with the S&P Global UK Construction Purchasing Managers’ Index (PMI) rising to 54.7 in May, the highest in two years. This marks a welcome turnaround for the industry, which has faced challenges in recent years.

UK construction sector growth accelerates

The growth in construction activity was driven by a broad-based expansion across all three monitored categories: housing, commercial, and civil engineering. The commercial sector saw the sharpest increase in activity, with a two-year high in growth rates. Housing activity also returned to growth, albeit marginally, while civil engineering activity rose at a solid pace.

Experts have welcomed the news, citing the importance of a thriving construction sector for the overall economy. “The UK construction sector looks to be building good momentum as we approach the middle of 2024,” said Andrew Harker, economics director at S&P Global Market Intelligence. “Particularly pleasing was the broad-based nature of the rise in activity as work on housing projects increased for the first time in more than a year and a half.”

Construction sector growth driven by commercial and housing activity

Meanwhile, Brickflow has partnered with Deallocker to offer borrowers and investors funding across the entire capital stack. The partnership will enable intermediaries to exclusively secure senior terms on the Brickflow platform, before using Deallocker to secure their second charge or equity requirements for their clients. This streamlined process is expected to speed up deal completion times and allow borrowers to move forward with their projects faster.

Brickflow and Deallocker partner to offer comprehensive funding solutions

In other news, Vida has reduced rates across its buy-to-let (BTL) and residential product ranges by up to 0.35%. The cuts are aimed at helping borrowers secure better deals in a competitive market.

Vida cuts rates to support borrowers

As the construction sector continues to grow, it’s clear that lenders and borrowers alike are adapting to the changing landscape. With innovative partnerships and competitive rate cuts, the industry is poised for further growth in the months ahead.

UK construction sector outlook remains positive