House building figures 'reflect demand'

Posted: 06 Apr 2011 12:12:01 GMT

The scale of demand for property can be seen through the increase in house building, it has been claimed.

Positive house building figures in the last year have reflected the scale of demand currently adding up across the UK, it has been suggested.

Steve Turner, head of communications at the Home Builders Federation, said it is well known that demand is out there, but explained a lack of mortgage available still has a constraining effect.

The industry figure was speaking in response to figures shown in the latest Markit/CIPS Construction Purchasing Managers' Index (PMI), which revealed residential construction levels increased for the third consecutive month in March.

He noted: "These [PMI] figures are reflective of what we have seen since January and must be a reflection of the demand that has been constrained over the past year or so."

The last 12 months have been a very difficult time for builders and house buyers, Mr Turner added.

According to the PMI figures, the seasonally adjusted index posted 56.4, which was fractionally weaker than February's eight-month high of 56.5.
 

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