UK construction headed for a drastic slowdown, warns trade association
Construction activity is headed for a drastic slowdown, according to a top UK trade association, as geopolitical pressures weigh on British builders.
Inflationary headwinds, labour shortages and supply chain disruptions have scuppered growth in the sector, with construction forecast to eek out 2.8 per cent growth in output – a stretch away from the 4.3 per cent growth the Construction Products Association (CPA) expected just three months ago.
It comes as up to 100,000 new homes across Norfolk, Hampshire, Devon and the North East have stopped construction after a ban was imposed by environment watchdog Natural England, The Times first reported.
The move may translate to rising prices in the housing market and is anticipated to bruise the government’s pledge to build 300,000 new homes a year.
Demand remains strong, which is thought to carry through to at least the third quarter of this year, the association added, with the industry painting a pretty picture for the short-term.
However, with rising energy costs driving near-record price increases in construction products, and the Ukraine war exacerbating headwinds, the CPA has warned of tougher times ahead.
It follows booming growth in the private housing sector amid the pandemic, which lockdown-driven home renovations spurring new business for the sector in a turbulent period.