When looking at signs of the health of an industry, news from those industries which supply it is a great indicator. Thus, the figures released recently from the Office of National Statistics that brick deliveries in August 2016 were 8.9% higher than a year previously shows how the recovery in housebuilding continues.
The seasonally adjusted figures, released by the Brick Development Association (BDA) and reported in Show House, also show a month-on-month increase of 5.5% and a year-to-date increase of 1.3% on the same period last year.
This comes on the back of news that the construction sector has bounced back after an initial post-referendum slump, and figures released by the National House Building Council which show a 20% increase in new home registrations in August 2016.
Chief Executive of the BDA, Keith Aldis, said, “Following the government’s announcement…that a £3 billion Home Building Fund will be introduced, these distribution figures reinforce confidence across our membership. The industry is geared up to respond to changing market dynamics and is equipped to meet immediate demand.”
Meanwhile, data from Barclays Mortgages and the economic consultancy, Cebr, reveals the cost of a brick in the average UK home has risen by 33% in a decade to £47.44 and to £121.08 in London.
UK property expert and TV presenter, Sarah Beeny, says, “It is fascinating to see just how valuable each brick that makes up a home works out to be, and how this can change over time. Of course, there are no guarantees on which way house prices will go in the future, it is very much lead by planning law and supply and demand, but this research should go some way in boosting the confidence of homeowners around the country. It really shows that property can be a great investment, and I would encourage people to get on the property ladder as soon as they can, even if this means looking in a new area where those all-important bricks are a little more purse-friendly!”
Raheel Ahmed, Head of Barclays Mortgages says,
We know how important it is for people to be able to buy their own home, and our latest research is a creative way to show how house prices are changing, as reflected by the 33% increase in the average cost of a brick since 2006.”
The research by Barclays also found that the cost of bricks varied significantly between different regions.