South West property sector continues to see stable growth

A new report on the property sector in the South West has found that the region has stable growth and investment.

The report has been put together by built environment consultancy Rider Levett Bucknall.

The third quarter of their Tender Price Forecast report explores the local effects of the wider national economic situation on construction activity, by focusing on regional perspectives and regional effects across the country.

Jackie Pinder, managing partner for RLB West and Wales, said: “Our latest tender price forecast for the South West, which is a benchmark for construction activity, shows that the outlook for the region is for stable growth and investment, despite new order figures being lower.

“The ongoing large-scale energy infrastructure interest we are seeing is expected to dramatically increase energy capacity in the region which will boost the commercial, data and energy storage and infrastructure sectors over the next few years.”

Overall, the outlook for the South West region is considered to be one of stable growth and investment, despite relatively poor new orders figures.

This is set against the backdrop of the wider construction market still dealing with the issue of ongoing labour shortages and the aftermath of sudden, though now relenting, materials cost inflation.

According to the findings large multi-use schemes are now being brought forward to planning now across several regional locations.

Other points:

■ Large multi-use schemes are being brought forward to planning.

■ Demand is beginning to soften in the residential market as purchasers but affordable housing remains busy.

■ Student residential market remains strong, with large-scale schemes going through planning in the university cities of Exeter, Bristol and Bath.

■ More contractors are increasingly seeking replacement workloads, across most

sectors.

■ There is ongoing very significant large-scale energy infrastructure interest, with offshore wind, nuclear, and new foreign power cable supplies programmes to come ashore in the South West. This is expected to dramatically increase energy capacity in the region, boosting commercial, data and energy storage and infrastructure sectors over the next five years.

■ There is also increasing workload coming through in air, sea, road and rail infrastructure and defence spending.