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The next government must make pro-development policy a priority, according to respondents to a survey by Pick Everard and Lichfields, with 83% of those polled citing government policy and economic uncertainty as major investment hurdles.
Gavin Mason, operations director at Pick Everard
Over half (55%) of respondents, who ranged from contractors and consultants to developers, said the establishment of comprehensive local plans should be a priority, especially as just 22% of current local plans are forecast to be fit for purpose by the end of next year.
Almost all (96%) respondents said they expected tender prices to rise over the next year, with 76% forecasting increases between 1% and 6%.
Major reasons for price rises cited by respondents included the impact of government legislation (26%), limited construction industry capacity (20%), and geopolitical volatility (19%).
The respondents also called for a long-term investment strategy, with 40% wanting clear investment paths, as well as public investment decisions on housing (38%), clean energy investments (39%), and national grid capacity improvements (38%).
Pick Everard operations director Gavin Mason said: “Our survey was carried out against a backdrop of political and economic uncertainty, in a market challenged by inflated construction costs, decreased public-led investment, increasing complexity in securing planning permission, continued shortages of skilled labour and a sector that is recording 4,000-plus insolvencies a year – the highest of any sector in the UK.
“All of these issues will need to be addressed by the next government, which is going to have a key role to play in improving sector output. It is also clear from the results of the survey that the industry is calling for constructive reform of legislation to deliver the construction investments the country desperately needs.”
Ciaran Gunne‑Jones, senior director, head of economics at Lichfields, added: “We need to see more local plans adopted, unlocking more homes and economic opportunities. The next government has the opportunity to work with the development industry to turbo-charge the UK economy, and to do it quickly.”
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