How could Brexit impact the construction industry?
- 21 Feb 2019
- In the press
Brexit continues to dominate public discourse, and with all eyes locked on 29th March, people are keen to understand just what the UK’s departure from the EU will mean for the economy.
However, despite the tumult surrounding Brexit, it is important not to let this overshadow some of the longer-term challenges facing the UK, the most prominent of which is the housing crisis.
There is a chronic undersupply of residential properties available on the market, and with demand continuing to outpace supply, there are concerns that more potential buyers will not be able to access new housing opportunities.
Positively, the Government has recognised the severity of this issue – in early 2018 Prime Minister Theresa May announced that housing remains a top policy priority. As a result, the Government is aiming to add 300,000 new homes to the market each year by the mid-2020s as part of its strategy to address the demand-supply imbalance.
Such a pledge places immense importance on the UK’s construction industry: the firms tasked with building the residential properties that are so sought after across the country. And so we return to Brexit, and in particular the question of how we can ensure the construction sector is positioned to effectively deliver enough new-build properties after 29th March.
For one, attention and resources need to be directed towards supporting the skills necessary to deliver the long-term housebuilding needs of the UK. It is estimated that 7% of workers in the construction industry are EU nationals, with this number jumping to 28% in London.
While we await greater detail about future visa arrangements of EU nationals following Brexit, a skills shortage could pose significant challenges and undermine the overall construction capabilities of developers both large and small.
Furthermore, physical materials and investment into infrastructure are two other areas that must be addressed as we head for Brexit.
Jerald Solis, Business Development and Acquisitions Director at Experience Invest, was recently called upon by the press to offer his expert insight into what challenges Brexit could pose for the construction industry. Acknowledging the Government’s housing target, Jerald called for greater partnerships between developers and local councils to ensure the construction industry can retain its skilled workforce.
Follow the link to read the full article about what Mr Solis of Experience Invest has to say on the matter.
About Experience Invest
Established in 2004, Experience Invest is a leading UK property consultancy which offers clients high-performing property investments. To find out more about Experience Invest, follow the link to watch the latest company video. If you’re looking for the latest UK property news and features on individual asset classes, visit the Experience Invest Blog where you will find out more information about real estate market trends.