Unfortunately the building industry took a dip again during the month of April 2016 as house building hit a downturn, possibly due to the introduction of the new financial year and the launch of the new spring budget. As a result, April 2016 was recorded as the weakest rise since 2013 according to Tim Moore, a senior economist at Markit.
The Construction Products Association, which represents suppliers to the construction industry sector, recently marginally downgraded its growth forecasts due to evidential trends within the building industry. However in a positive step, it has continued to outline its growth expectations for the coming year by doubling the 1.8% forecast for the UK economy.
Despite George Osbourne’s plans in the 2015 Autumn Budget to build affordable homes, demands are still not being adequately met and there continues to be a housing shortage throughout the UK. Howard Archer, chief economist at IHS Global Insight, says “The chancellor needs to move quickly to implement plans to double the housing budget to more than £2bn a year and to build 400,000 affordable homes by the end of the decade.”
The Building Industry and our desire for bricks and mortar
By implementing this strategy, the UK economy would flourish on so many levels as first time buyers up to homeowners and families who are on higher levels of the housing market, seek to invest their savings and take on mortgages. Whilst the demands for new homes and the development of popular areas throughout the UK continue to be sought after, it’s not just the desire for bricks and mortar but the communities that are built in and around new developments, along with sustained resources such as new business developments and the employment opportunities that comes with it.
If you are a housebuilder and considering a business expansion to accommodate new projects within the building or general construction industry then please contact Crendon Insurance to find out how we can help to support your employment and contractor growth based on building industry liability insurance and specific HSE requirements.
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