Building trade in freefall as confidence collapses

              

 

Housebuilding crisis deepens across the UK

The foundations of Britain’s construction industry are beginning to crack. New industry figures reveal the sharpest downturn in construction activity for six years, with builders cutting jobs, delaying projects and warning that rising costs are making many developments unviable. From housebuilders to subcontractors, firms across the sector are feeling the strain, raising serious questions about how the Government will deliver its ambitious housing and growth targets.

UK CONSTRUCTION IN SIX‑YEAR FREEFALL

The UK’s builders are in meltdown, with construction activity collapsing at the fastest rate in six years. Bosses are slashing jobs to survive.

New industry figures show the sector is plunging towards levels not seen since the financial crash, as soaring energy bills, sky‑high fuel costs and government chaos hammer confidence.

The latest S&P Global construction index, which is a key health check for the industry, crashed to 38.2 in May, miles below the 50 mark that signals stability. Apart from the pandemic, it’s the worst reading since March 2009.

Housebuilding “on its knees”

Researchers say housebuilding has been “especially subdued”, despite ministers promising 1.5 million new homes by 2030 and splashing out £39bn on affordable housing schemes.

But with no new orders coming in, firms are being forced to cut staff, shelve projects and brace for even tougher times ahead.

Energy shock hits hard

Builders say the surge in oil and gas prices since the Iran conflict erupted has sent costs spiralling. Transport bills, energy charges and subcontractor fees have all jumped at the fastest pace in more than three years.

The banks too are concerned that the sector is under huge pressure and energy and fuel costs are hitting projects hard.

“Dire, dire, dire”

Shadow ministers tore into the government’s promises of a construction boom, saying leadership turmoil has stalled growth and shattered confidence.

One senior figure blasted: “Instead of ‘build, build, build’, it’s ‘dire, dire, dire’. This is the worst housing market confidence in six years.”

Projects paused, budgets slashed

Firms across the country report:

• Cutbacks in budgets
• Delayed investment decisions
• Projects pushed back or cancelled

The only bright spot is energy infrastructure, which is one of the few areas still seeing strong demand.

Economists stunned by the slump

Analysts at Pantheon Macroeconomics said the scale of the collapse is usually seen only in deep recessions and suggests the survey may be more pessimistic than official data. For thousands of builders, contractors and small firms, the pain is already real and getting worse. The UK’s construction sector is the foundation of growth, jobs and new homes and at the minute the foundations are crumbling.

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