2016 Predictions from Building Consultancy
2016 has already delivered surprises particularly the unpredicted turmoil in the world stock markets.
Here are some of our key Building Consultancy predictions for 2016:
Construction activity will continue to grow
Limited industry capacity will continue to fuel price inflation but at the same time builders that don’t manage their cash flow will remain a default risk. With inventory still at a low level, designers and specifiers may be forced to look at new sources for materials and components.
Building costs to rise
Tender prices will grow between 4% and 5% nationally. In the London market this will be higher, between 5% and 6%. The price of steel will fall but demand is still being driven by a number of big development schemes.
The increasing importance of the workplace as a means of attracting and retaining talent
Employers will invest more in creating flexible, wellbeing focused work settings for their staff because of the positive impact on employee productivity.
A continuing shift to online retailing
It’s easy to buy online, now it has to be equally easy to have what we buy delivered to us wherever and whenever we want it. The creation of the necessary infrastructure, from regional mega hubs to local drop in or consolidation centres will be a focus for the industrial market.
New residential models
Could this be the year that private rented development really takes off? We expect new models will be developed to meet the pent up demand for living space. Micro flats, communal living, maybe even a return to live work. New financial models might well emerge too.
More pressure on the planning system to deliver
The changes to the NPPF and the provisions of the Housing and Planning Bill will intensify the search for balance between an effective, thorough planning process but one that doesn’t delay or limit the right development from gaining approval.
Do any of our predictions concern you? As always we are ready to assist so please contact us directly or visit our homepage to learn more about how we can help.