"The UK's construction industry is facing its longest slump since the COVID-19 pandemic. Building a house is becoming harder as fewer projects are starting and construction work slows down. Many builders are reporting tough conditions, with rising costs and fewer new orders making it difficult to keep up with demand. This slowdown puts the government's plan to build 1.5 million new homes by 2029 at serious risk."
"The homebuilding sector experienced its sharpest decline since February, with the housing sub-sector PMI dropping to 44.2. Civil engineering also saw a significant reduction, recording its lowest level since October 2020 at 38.1. These declines are primarily attributed to a lack of new projects and increased competition among firms. Gareth Belsham, director of Bloom Building Consultancy, commented: "Things have gone from bad to worse for housebuilders, with residential construction output falling at its fastest rate since February.""
"With 140,000 more construction workers needed for the next five years to achieve the government's Warm Homes Plan, and another 61,000 each year to meet the target of 1.5 million new homes, considerable investment is needed to tackle skills shortages and deliver these targets,"
UK construction is experiencing its longest post-COVID slump, with fewer projects starting and construction work slowing. Homebuilding output fell sharply, evidenced by the housing sub-sector PMI dropping to 44.2. Civil engineering contracted to its lowest level since October 2020 at 38.1. Rising costs, reduced new orders and increased competition are constraining firms. A significant skills shortage threatens delivery, with projections of 140,000 additional workers needed over five years for the Warm Homes Plan and 61,000 per year to hit the 1.5 million homes target. Supply-side signs include shorter delivery times and eased purchasing price inflation, while business confidence remains weak.
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