British construction would be harmed by Brexit

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Housebuilding firm Crest Nicholson has warned leaving the EU would have a significant impact on British construction…

Crest Nicholson has warned Brexit would damage the construction sector by disrupting the import of building materials and by stopping foreign construction workers coming into the UK to work.

Chief executive Stephen Stone said it would be more difficult and more expensive to obtain products from the EU if the UK voted out.

Additionally, a hold on foreign workers would slow down construction and further exacerbate the housing crisis.

He said: “As a business, we’d be disappointed if Brexit were to happen. This is a period where we are growing as an industry, and it would be a shame to put that at risk.”

Stone also warned Brexit would damage the apprenticeship programme run by his firm, as “we would stop recruitment”.

“We have strong relationships with our European suppliers,” Stone added. “Belgium and Spain would still be keen to trade, but clearly Brexit is going to take a few years to negotiate.”

He continued: “As a prudent business we would probably pause. It means restricting investment in land and in people. We would review it in three or six months’ time.”

Skills shortages in the construction industry remain a problem, but Crest said this could become worse in the event of a vote to leave. The sector relies on foreign workers to plug skills gaps.

The construction sector has remained somewhat divisive on the issue of Brexit, with a number of surveys conveying mixed feeling toward the referendum vote.

In April, the Scottish Building Federation suggested builders were leaning towards remaining in the EU, despite limited exposure to the union. In fact, the majority of Scottish construction firms said they did not employ workers from overseas, with only 23 per cent of SBF members reporting they employ labour from other EU nations, while 77 per cent said they did not.

Another survey also carried out in April revealed a divide among UK housebuilders remain over leaving the EU, with only 31 per cent concerned about withdrawing. The survey of 389 owners or directors of house building companies was carried out for property consultants McBains Cooper by Morar Consulting. The survey revealed only 31 per cent of firms are worried about an EU withdrawal.

Additionally, a poll carried out by the Federation of Master Builders (FMB) revealed more than 80 per cent of small construction bosses will vote on the upcoming referendum based on their own personal beliefs. The poll revealed that builders believe the main benefit of a Brexit is that it allows the government to specifically legislate for British business. Conversely, support for remaining in the EU comes from the continued economic stability membership would offer.

The referendum vote will take place on 23 June.

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