Difficulty in securing a mortgage having 'negative impact' on construction

Posted: 07 Jan 2010 12:16:09 GMT

Getting a mortgage approval is still "very difficult" for many people in the UK, in the opinion of one construction expert.

Brian Berry, director of external affairs at the Federation of Master Builders, says that this factor will contribute towards a "rocky ride" for the construction industry in 2010.

He adds that recent figures from the Chartered Institute of Purchasing and Supply and the Markit Construction Purchasing Managers Index - which revealed that residential building activity in December increased at its fastest rate since August 2007 - present a distorted view of the marketplace.

Mr Berry goes on to state that the figures give a false impression of what is actually happening because the construction industry has actually almost collapsed.

"We are starting to pick up but in a very slow and disjointed way," he advises.

The construction expert concludes it is likely that whichever party wins the upcoming general election will need to cut public expenditure or demand higher taxes in order to balance the nation's books, which in turn will have a detrimental effect on the building industry.

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