Planning delays are ‘one of the biggest barriers to growth’ in the construction sector, survey reveals.
The latest UK Construction Market Survey from RICS shows a dramatic slow-down in growth in the private housing sector despite the Government’s promise to deliver 200,000 new homes by 2020.
RICS reports private housing workloads rose during the first quarter of 2016 at their slowest pace since 2013. Only 36% more of those working in the sector reported a rise in growth. During the first quarter of 2015 that figure was close to 50%.
According to the survey’s findings, while 33% more respondents saw workloads rise during the last quarter of 2015, this figure has dropped by 5% over the past three months.
The survey also revealed a sharp drop in confidence. This time last year, 79% of construction professionals expected to see workloads rise. This has decreased to 55%.
RICS calls on the Government to do more to free up private brownfield sites, but also argues the biggest problem is planning delays.
Simon Rubinsohn, RICS’ chief economist, wrote: ‘Our survey tells us that planning delays are one of the biggest barriers to growth in the construction sector.
‘We have recommended that councils work together to create a team of emergency planners who can parachute into boroughs that are experiencing significant delays, therefore reducing a major growth barrier.’
