Housing construction in the UK experiences its steepest decline since COVID, potentially jeopardizing a goal of building 1.5 million homes

The UK's construction sector is currently facing a series of challenges, with residential construction output falling at its fastest rate since February, according to Gareth Belsham, director of Bloom Building Consultancy.

The decline in residential construction is not isolated. Civil engineering has also seen a significant reduction, recording its lowest level since October 2020 at 38.1. These trends are causing concern for the government's target of delivering 1.5 million new homes by 2029, as the industry slump threatens the achievement of this ambitious goal.

Business confidence in the construction sector has weakened, with only 34% of firms expecting growth in the coming year. The slowdown in the sector is due to a combination of factors, including fewer projects starting and slower construction work, as well as increased competition among firms.

Many builders are facing tough conditions with rising costs and fewer new orders. Tim Moore, economics director at S&P Global Market Intelligence, noted that construction activity has decreased continuously since early 2020.

The overall outlook for the construction sector remains bleak, with decreasing construction activity throughout the year. The housing sub-sector PMI dropped to 44.2, marking its sharpest decline since February, further highlighting the challenges faced by the industry.

The slowdown in the construction industry is not only threatening the achievement of housing goals but also the government's Warm Homes Plan, which requires an additional 140,000 construction workers over the next five years. To meet the target of 1.5 million new homes, an additional 61,000 workers are needed each year.

Sara Roberts, Chief Operating Officer at Kingdom Academy, emphasized the need for investment in skills development to address the significant shortage of skilled workers in the sector. Without substantial intervention, the goal of delivering 1.5 million new homes by 2029 remains uncertain.

It is worth noting that there is no specific information in the search results about a government coalition in the United Kingdom promising to address the current crisis in the construction industry caused by a prolonged downturn in the sector.

The UK's construction industry is experiencing its longest slump since the COVID-19 pandemic, potentially leading to the abandonment of the target of delivering 1.5 million new homes by 2029. It is a critical time for the industry and the government to work together to find solutions and ensure the delivery of much-needed new housing.

Housing construction in the UK experiences its steepest decline since COVID, potentially jeopardizing a goal of building 1.5 million homes