[London 9th Reuters]-According to an annual survey by the British Construction Industry Association (FMB), demand for new housing has dropped to a low level for the first time in six years since 2013. The reason for this is that housing purchases are refrained until the prospect of leaving the European Union (Brexit) is more certain.
The survey of small and medium sized builders found that land, money and skilled workers were easier to secure than a year ago, while construction demand from home buyers declined further.
FMB CEO Brian Berry said, “Small and medium-sized builders are starting to feel that uncertainty about Brexit is affecting consumer confidence. “It ’s clear that we ’re putting up with purchases until the uncertainty in terms is reduced,” he said.
According to the FMB, these SMEs have less than 10 constructions per year, accounting for about a quarter of the total construction in the UK construction industry. The rest are dominated by a handful of big players.
The biggest barrier faced by SMEs continues to be the shortage of small land that has been granted development permits, followed by financing.
The percentage of companies that cited the shortage of skilled workers as a limiting factor dropped from 44% to 26%. This contrasted with the overall trend in the construction industry, which appealed for the shortage of skilled workers. However, SMEs also expected a further shortfall next year.
The survey was conducted at 154 SMEs operating in England.