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20/10/2016

Brexit Uncertainty Stagnates Growth In UK Construction Sectors

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New figures have revealed growth in the majority of UK construction sectors is slowing down due to uncertainty surrounding Brexit.

The latest Royal Institution of Chartered Surveyors (RICS) Construction Market Survey states while there was a 19% rise in the amount of chartered surveyors reporting rising workloads, this is largely slow compared with growth trends over the last three years.

The largest increase was experienced in the Midlands (30%) while London and the South East saw growth levels decline "significantly", largely due to a slowdown in private commercial sector activity.

Out of each construction sector, private housing saw the highest levels of growth (27%) while the private commercial sector was unchanged from the previous quarter.
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In addition, 175 of respondents reported rising workloads in the infrastructure sector, while actiity in the public sector continues to underperform.

RICS said it appears financial constraints "remain the most significant impediment to growth", as well as anecdotal evidence of uncertainty due to Brexit. However, around 50% of respondents are predicting workloads to rise over the coming year.

Jeremy Blackburn, RICS UK Head of Policy, said while private housing remains strong, the figures mask a "disparity between the kinds of properties that are being built".

"When the Communities Secretary publishes his Housing White Paper later this month, he must deliver a housing programme that benefits more than the just the fortunate few," he said.

"We need to shift the rhetoric away from home ownership and encourage the building of affordable rental properties in the suburbs and our cities.

"While the Midland's Engine - driven by high speed rail programmes - is building up steam, we expect the Chancellor to initiate a wave of smaller infrastructure schemes, whether new build, repair or upgrade, across the transport network.

"As the UK prepares for the changes ahead, the ability to move people, goods and services more effectively will be vital and we expect locational investment in road, rail, air and sea ports. Government must continue to reassure and encourage investors in the coming months so that improvements to UK infrastructure can continue."

(LM/CD)

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