According to a new survey, pro-development policy must take precedence if the construction industry is to achieve its full investment potential in the future
Survey respondents have identified pro-development policy changes the next government can enact immediately to kickstart growth ambitions in the construction industry.
Indeed, 83% of respondents identified policy or economic uncertainty as major investment stumbling blocks.
Pro-development policy platform to increase investment activity
One of the primary goals across the sector is to establish a pro-development policy platform to boost investment activity.
55% of respondents identified achieving comprehensive local plan coverage as a top priority, although separate research by Lichfields indicated that only 22% of plans are expected to be adequate by the end of 2025.
Public investment decisions rank high for industry
Additionally, there is a strong emphasis on the need for a long-term industrial strategy, with 40% calling for clear investment paths.
Public investment decisions in housing (38%), clean energy investments (39%), and national grid capacity improvements (38%) also rank high on the wish lists of contractors, developers, and consultants.
Calls for reform of existing legislation
Gavin Mason, operations director at Pick Everard, said: “Our survey has been carried out against a backdrop of political and economic uncertainty, in a market that is challenged by inflated construction costs, decreased public-led investment, increasing complexity in securing planning permission, continued shortages of skilled labour, and a sector that is recording 4,000+ insolvencies a year – the highest of any sector in the UK.
“All of these issues will need to be addressed by the next government, which is going to have a key role to play in improving sector output.
“It is also clear from the results of the survey that the industry is calling for constructive reform of existing legislation to deliver the construction investments the country desperately needs.”
Tender prices are expected to rise next year
Further results within the survey reveal that 96% of respondents expect tender prices to rise in the next year, with 76% predicting increases between 1% and 6%.
Contributing factors include the impact of government legislation (26%), construction industry capacity (20%), and geopolitical volatility (19%).
Industry concerns and priorities
Assessing current industry challenges, 24% of participants called for a review of the recently enacted legislation on Biodiversity Net Gain, which was implemented earlier this year.
Gateway 2 of the Building Safety Act and the Part L building regulations (2022) have also been subjects of extensive debate within the construction sector over the past year.
Furthermore, to foster industry growth, there is a pressing need to reduce interest rates (36%) and increase investment in training grants (24%).
The latter is particularly crucial in addressing the widening skills gap in construction.
