Kalpana Padhiar, risk underwriting manager and construction specialist at global credit insurer Euler Hermes, said:
“Broad concerns about global growth and the uncertainty surrounding the Brexit referendum, together with the acute skills shortage, are all weighing down on investment decisions in the sector, which may also increase pressure on cash flow and prompt payment. These concerns are heavily affecting housebuilding, previously a star performer, which is struggling for new business growth with current performance comparable to the pre-election lull in 2015.”
“Looking further ahead, and despite promises to explore options for big new infrastructure projects, many in construction feel that last month’s Budget worked against them. The scrapping of stamp duty exemptions for large residential investors in particular, is seen as something that could clip the wings of the nascent PRS sector before it even took off.”