Black Country company upbeat as housing sector may have 'turned a corner'
Data suggesting UK’s housing sector has grown at the fastest rate since the mini-budget knocked the industry almost two years ago, has been welcomed.
The latest S&P Global construction purchasing managers’ index (PMI) scored 53.6 in August.
Any reading above the 50.0 threshold indicates that activity in the industry is increasing, while anything below means it is shrinking.
James Rennison, Managing Director of Kendrick Homes, said: "We are encouraged by the recent signs of recovery in the housing sector, and, with mortgage rates now at their lowest levels since the mini budget, we are feeling increasingly optimistic about the market's direction.
“While we remain mindful of broader economic conditions, the drop in rates is a positive indicator for potential buyers and should encourage more movement.
“We are fully focused on preparing our sales teams and ensuring our six developments across the Midlands and in the South are ready to meet the future surge in demand that many industry experts are predicting. This proactive approach should put us in a good position to take advantage of the expected upswing in the housing market."
Kendrick Homes is one of the UK’s longest established providers of new build quality homes. The company, which is located in the heart of the Black Country, has been building communities since 1880.
Tim Moore, economics director at S&P Global Market Intelligence, said: “The UK construction sector appears to have turned a corner after a difficult start to 2024, with renewed vigour in the house-building segment the most notable development in August.
“Commercial building was the best-performing part of the construction sector as the improving UK economic backdrop resulted in stronger order books, but the post-election bounce in demand faded somewhat in August.”
