The biggest fall in new UK construction projects since March 2009 is one of the consequences of the uncertainty surrounding Brexit, according to the UK Construction Report.
New work orders have declined every month since April, ending up in the biggest drop this decade and the result being that competition for business has grown far fiercer than before. The situation hasn’t been helped by the lack of foreign investment, with orders from the US and Asia also falling in the last two years.
Despite all the current unease, analysts are confident that things can pick up quickly if a deal can be put in place with the European Union, with the greater concerns being the political and economic unrest rather than a lack of funds. New work in the housing sector is also expected to rise again shortly, with mortgage rates falling in the last six months, which could also bring with it more commercial opportunities.
The Federation of Master Builders suggested that continued housing projects were crucial to keep the economy moving forward.
Their Chief Executive, Brian Berry, added:
“If we want local builders to deliver the high-quality homes our country needs, to upgrade people’s homes to modern standards and to form the supply chain for key national infrastructure projects that are essential to helping our economy move forward, then we certainly can’t afford for building companies to go to the wall due to uncertainty.”
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