Whilst double-digit growth recently forecast for the construction industry in 2022, property consultancy Vail Williams urges caution as industry faces chronic shortages.
A recent report from the Construction Products Association has forecast construction output to rise by 6.3% in 2022. Yet, behind this façade of buoyancy is a sector struggling to maintain construction pace, amid crippling shortages and rising costs, according to Vail Williams.
Indeed, it was the Royal Institute of Chartered Surveyors (RICS) themselves, who recently issued a stark warning in their recent report highlighting the issue of rising global material costs, which 83% of respondents stated, was already holding back construction activity.
We believe that the harsh realities of Brexit have come into play, exacerbated by global supply chain bottlenecks and the effects of the pandemic, resulting in a UK skills shortage, rising materials and labour costs which could slow down delivery of construction projects in 2022.
“What is happening in the construction industry currently is a warning to Government and industry that things need to change if housing targets are to be met, and key infrastructure projects delivered,” commented Holly Vos, Chartered Surveyor based in our Woking office in Surrey.
Whilst nearly 50,000 homes were built in the first quarter of 2021, over 100 local authorities failed to deliver on their targets in 2020. With 300,000 houses a year to deliver, many developers are struggling to meet Government targets for housing delivery in 2021, thanks in part to Brexit, as well as the challenges of a planning backlog.
In its Building on Brexit Report, the Construction Industry Council warned of the potential impact of Brexit on the industry, and it appears we are now seeing this come to fruition, brought even further into focus by the pandemic.