Despite Government pledges to deliver 200,000 new homes by 2020, private housing workloads are at their slower pace since 2013, according to the latest UK Construction Market Survey.
Only 36% of firms reported a rise in growth during the first quarter of 2016, a decline from 50% in 2015.
However, while 33% additional respondents saw workloads rise rather than fall during the last quarter of 2015, this figure dropped by 5% over the previous three months.
In addition, confidence in the sector also dropped with construction professionals saying that they expected to see workloads rise over the next 12 month outweighing those expecting a fall by 55%.
-- Advertisement --
Respondents also forecast headcounts continuing to rise over the coming 12 months with a net balance of 41% expecting growth, and a rise of 2% forecast, on average.
Simon Rubinsohn, RICS Chief Economist, said: "On the surface, it might seem surprising that we are witnessing a slowdown in the construction sector just a few months after hearing the Chancellor's 'We Are The Builders' speech, given the Government's significant commitment to this sector. One might well ask why growth in private housing workloads is softening at a time when policy is firmly focussed on the creation of new starter homes. We have long held the view that starter homes cannot be the only solution. There is an issue around the availability of land on which new houses can be built, and we would like to see more being done to free up private brownfield sites.
"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.
"That said, we cannot discount the climate of uncertainty caused by the forthcoming EU referendum. We know that a range of sectors have been affected by these issues as investors look to delay any decisions until a final outcome has been determined, and construction is no exception."
(LM/MH)
