Housebuilding boost as firms announce strong projections

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The residential construction sector is on the up in the UK, with forward figures from two housebuilders reflecting positivity in the sector.

McCarthy & Stone has announced plans to effectively double the size of its business in the next four years. As part of this, it will split its Northern division into two offices in preparation for growth.

The firm, which specialises in retirement properties, has made a £2bn national investment commitment to land and building over the next four years and plans to develop 12,000 homes in 300 locations.

In East Yorkshire, Beal Homes revealed its forward sales have exceeded pre-recession levels for 2015.

The family-owned builder, which has been developing in the region for almost 50 years, has secured 62 sales for the year.

In 2014, it completed 145 properties and is targeting 166 builds in the next 12 months.

Richard Beal, chairman and managing director at the business, said Help to Buy had bolstered the market in Hull, while improved economic prospects had also boosted its 2015 off-plan sales.

“With demand increasing in our region we anticipate, should the economy continue to be steady, new-build price growth will follow during 2015,” he added.

Figures from Markit/CIPS this week showed residential building was the best performing sub-category of the construction sector in January.

While the announcements are a boost for the UK’s housing prospects, concerns remain over a chronic shortage of properties.

Strata chairman Irving Weaver told The Yorkshire Club Business Club’s December event that radical action is need to boost home numbers.