Construction output to fall

Published:  12 April, 2011

LONDON: Building activity is set to fall this year and next says the Construction Products Association.

After an initial recovery in 2010 from the sharpest downturn in more than a generation, the association forecasts output will fall by just under 1% in 2011 and by a further 2% in 2012.

Michael Ankers, the association's chief executive said: "We welcome the steps that the government is taking to stimulate private sector growth but we do not see these in the short term as being sufficient to outweigh the public sector cuts."

Availability of finance remains an issue for many companies and the housing market is still being held back by the lack of finance available, particularly for first time buyers, he said.

The association calls on government to:

  • put pressure on the institutions to make finance available for house purchase and ensure that the range of initiatives introduced in the recent Budget actually work
  • make sure that planning authorities around the country adhere to the requirement to make a presumption in favour of sustainable development
  • ensure that the localism agenda acts as a stimulus for growth in local communities and does not create a 'nimby's charter'
  • accelerate the programme for investment in energy supply so that companies have an increased confidence about investing in the UK
  • introduce incentives to encourage householders to invest in the energy efficiency of their homes in advance of the Green Deal policy being introduced at the end of next year.'

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