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News Release from: PKF Accountants & Business Advisers | Subject: Property and construction industry
Edited by the Buildingtalk Editorial
Team on 10 January 2005
Predictions for property and
construction in 2005
PKF accountants and business advisers make predictions for the property and construction industry in 2005.
According to Neil Gray, partner specialising in the property and construction industry at PKF, the factors affecting the sector in 2005 are likely to include: * There will be increased activity in commercial and mixed use schemes as developers attempt to spread their risk
This article was originally published on Buildingtalk on 22 Oct 2003 at 8.00am (UK)
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* Drivers of housing activity will continue to be supportive of price growth, albeit at a slower rate and increases in house prices will slow to be broadly in line with growth in earnings.
* There is likely to be a slowdown in the buy to let market of residential properties in first two quarters of 2005 but as people get ready for the changes in pension legislation in April 2006, allowing residential properties to be included in personal pension planning, the buy to let market in final two quarters of 2005 will strengthen.
* The construction industry has experienced growth of around 4-5% in the last two years with house building being the key driver of this growth.
In 2005 strong growth will be seen in new public buildings, schools and hospitals, where increased public expenditure continues to provide funding.
* Imbalances between supply and demand and increased expenditure on public housing should ensure continued growth in 2005, despite a slowing down in house price inflation.
This is likely to follow a steady first quarter due to the uncertainty of a pre-election economy.
Neil Gray said: "It is important that businesses in the property and construction industry have an idea of what they are likely to face in 2005 if they are to plan effectively".
"Hopefully the predictions above will help people to do this as early planning is key to business success.".
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