Region’s construction sector set to thrive in 2017
HIGH demand for affordable housing across Yorkshire combined with low interest rates makes for a bright outlook for the residential construction market in 2017, a property expert has said.
Giles Taylor, KPMG’s northern head of property and construction, predicts that Yorkshire’s property and construction industry is “set to thrive” in 2017, despite facing challenges.
“Housebuilders and developers are already exploring innovative building practices to capitalise on this demand, with Legal & General’s modular housing factory outside Leeds being just one example. We also expect to see build-to-rent schemes take off in earnest next year, with Grainger commencing the redevelopment of the Yorkshire Post building in Leeds city centre to create 242 purpose-built homes,” he said.
Mr Taylor also highlighted that there is a healthy pipeline of commercial developments across the region.
“A great example is the extension of an existing leisure and business park outside Leeds at Thorpe Park by Scarborough Group, with a shopping centre and 40,000 sq ft of office space in the works. This bucks the national trend that has seen schemes put on hold as some corporates delay investment decisions pending clarity on Brexit.”
However, while Mr Taylor says the pipeline is strong, he warned that challenges remain.
“The industry as a whole has suffered from an endemic skills shortage in recent years. To tackle this in 2017, firms across Yorkshire need to make a concerted effort to retain the talent being nurtured in our universities and offer attractive, long-term opportunities for young people. Additionally, rising material costs, the fall in the value of sterling, and the political uncertainty throughout 2016 have all hit the construction sector hard in 2016.
“It’s important to remember that amidst this macro-economic uncertainty, the fundamentals of business still apply. Demand remains high and contractors that look beyond political and economic instability, plan for the long-term and produce a high-quality product, with high-quality customer service will succeed.”
