The Federation of Master Builders (FMB) have warned that housebuilding support needs to keep momentum in the new year after a lacklustre index performance
The FMB are pushing housing support by the Government, as the latest PMI’s reveal the sector to be the weakest performing in the industry.
Construction output as a whole was rated at the lowest in half a year, causing concern in the industry that any gained momentum is being lost again.
“The fastest reduction since June 2024”
The business activity in the January PMIs was at its slowest rate of expansion since June 2024, and new order growth did not see any increase.
Brian Berry, chief executive of the FMB, said: “Today’s figures demonstrate the need for significant concern about the viability of the Government’s plans to boost housebuilding rates, with the data showing a decline in output for the third consecutive month. More alarmingly, as we are in the winter months, this has been the fastest reduction since June 2024. With ‘subdued demand conditions’, ‘elevated borrowing costs’ and ‘weak consumer confidence’ sighted by survey respondents as holding back growth, more must be done to get Britain building again.
“The Government made a promising start, following the General Election, with pledges to build 1.5m homes and implement significant planning reforms welcomed by the construction industry. However, the FMB have continued to make the case that these goals will simply not be deliverable without a focus on tackling the construction skills crisis; diversifying the housing market from a small number of volume housebuilders; and ensuring changes to planning policy actually deliver for small builders. Despite early announcements, the data shows this must remain the long-term focus for 2025.”
The changes FMB recommend will transform the industry
The skills shortage is a key issue in the industry, affecting all aspects and professions. A report has shown that salaries in the building control profession have been driven to unsustainable levels due to an exorbitant demand for skill and an inability to supply.
Some in the industry applaud the new skill hubs that the Government is establishing, increasing interest for younger people to join the construction industry. The skills taught in these hubs can include traditional skills as well as modern methods of construction, sustainability, and more.
Late last year, the Government delivered on their promise to change the National Planning Policy Framework.
However, the response was less-than-stellar from many, with criticism coming from SMEs calling some aspects of the announcement “a scandalous abandonment of small businesses who used to form the core of the Conservative vote.”
The Royal Institute of Chartered Surveyors (RICS) also had concerns, stating that while they applaud the Planning Skills Development Fund, they “remain concerned around the acute lack of resources available to local authorities and the impact this will have on realising these LDPs.”
