UK construction figures add to economic doom and gloom

The UK's construction industry continues its descent. Analysts blame everything from uncertainty surrounding Brexit to the housing crisis and the policies set out by new London mayor Sadiq Khan.

Overall, Private house building is the only area that has experienced some growth over the last 12 months.

There are some signs that the uncertainties surrounding Sadiq Khan’s new housing proposals could be the cause of the faltering number of houses being built. The newly elected mayor of London made housing a priority in his campaign for City Hall, referring to London’s housing crisis as “the number one issue”.

Michael Thirkettle of McBains Cooper claims: “housebuilders are telling us that they’re waiting to see the details of the new mayor’s housing policies before committing resources to new developments.”

The anticipation that is apparent in the lead-up to the EU Referendum is also another reason for the construction companies and individuals to remain idle as they await the result in uncertainty.

Howard Archer of HIS Global Insight said: “the construction sector is seemingly currently being affected by increased caution among clients… amid heightened economic uncertainties that are being magnified as June’s referendum looms.”

More bad news comes still, as the Bank of England warn that even if the UK does vote to remain a part of the EU, economic activity still may not bounce back very quickly.

However, industry experts have issued advice not to read too much into these figures as the data has often been revised upwards. Professor Noble Francis, economics director at the Construction Products Association said: “all of the surveys across the industry suggest that output grew over the first quarter.”