Living Costs, The Construction Industry, And Property Investment
The cost of living crisis extends far beyond increases in rail fares and electricity costs.
Property investors are fully aware that home prices and rentals are both rising.
But what about the UK construction sector and the implications of a 25% inflation rate on various building materials?
According to Barbour research, the construction industry faces some serious issues and planning apps and contracts offer some clues…
As a reminder of what is to come:
> Planning applications have declined by 12%, which is much lower than the national average. This indicator provides one of the most accurate long-term projections of the construction industry’s health, and it is the first time this year that it has fallen below the long-term average.
> Contract values given as a shorter-term metric revealed that June was a strong month, with a 15% increase over May’s value to £6.4bn.
More expensive new houses and greater refurbishment prices will do nothing to solve the UK’s persistent supply constraint, much alone the consequences of faltering construction industry.
