House building crisis deeper than expected

The Construction Centre today warned that the number of housing projects being currently shelved would have far reaching effects and place significant stress on the market even after the country pulls itself out of recession.

Figures released from Emap Glenigan this week showed that housing projects totalling over £11.7billion had been scrapped so far this year. Reports have also been rife that the public sector has also had to scale back its plans for various housing schemes across the country.

The Construction Centre.co.uk said that although deferring projects may help cash flow in the immediate future, the long term effects of this slow down could be severe. Over the last 12 months the Centre has been monitoring the state of the market in the light of the government’s goal to build 3.8 million homes by 2020, reporting that achieving the target would be difficult even in the best of circumstances. It said that even without the financial crisis, the new house building figures were not enough to meet the government’s ambitious goal and now with the public sector pulling out of housing initiatives and the private sector almost at a standstill, the target is merely a pipe dream.

The Construction Centre also warned that even when the country was out of recession the housing sector would struggle to regain its footing. It said the industry would not be ready to cope with the demand for housing as the shortfall of new homes would be extreme. The level of skills shortages would also be a significant contributor, exacerbating the situation further. The Construction Centre highlighted that this was the time for the government to invest in training and skills in order to plan ahead for when projects finally start to regenerate. It also said that instead of curbing projects the government should continue to invest in public housing which would help boost the construction industry during the recession and help satisfy demand.

Richard Simmons Managing Director at The Construction Centre said “The construction industry is always the first sector to be hit during an economic down turn but it is also the first to improve when things start to get better. What is clear is that the government should continue to invest in housing in order to bolster the construction industry during this time. It also should invest in training and skills so that following the economic crisis there won’t be a housing crisis which will see demand far outweigh the industry’s capabilities, to the point where people’s lives are affected.”

The Construction Centre said that in order to help promote skills training in the building industry it would look to further develop the courses section of its website to direct and encourage people to undertake key training and certification schemes.

Notes for Editors:

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