Energy efficiency projects are one of the few areas of growth
The Construction Product Association’s (CPA’s) autumn forecasts predict construction output in 2023 will be down by 6.8%. A further fall of 0.3% is expected in 2024, down from a 0.7% growth forecast predicted in its summer publication.
The CPA also expects the UK economy to ‘flatline’ in 2024 because of high interest rates. Mortgage rate increases have led to housebuilders reporting a 30-40% fall in demand, and this has remained weak throughout summer and early autumn, it added. Completions are expected to fall 19% this year and be flat in 2024, while private housing repair, maintenance and improvement is forecast to fall 11% this year.
Energy efficiency projects remain strong, but there are questions for the delivery of government programmes such as ECO4, the Great British Insulation Scheme, and the Boiler Upgrade Scheme, said the CPA. It added that infrastructure growth would be flat for the next two years.