Fewer new homes to be built?

Posted: 03 Nov 2010 10:03:15 GMT

A specialist has suggested the number of new build homes will continue to fall.

There could be a shortage of new build homes, one expert has claimed.

Director of external affairs at the Federation of Master Builders Brian Berry said a slowdown in the rate of construction growth in October will have a "dramatic" effect on the sector.

"I think it is the impact of government changes in terms of public sector cutbacks - as we saw in the Comprehensive Spending Review," he observed.

Mr Berry noted the cut in social housing is a prime example of the decisions currently being made and this is also having consequences for levels of maintenance work being carried out.

There will probably be further declines when people realise the full extent of the spending review and confidence in the economy will drop further, Mr Berry explained.

According to the latest Markit/CIPS Construction Purchasing Managers Index, growth fell to a reading of 51.6 points in October, which is the lowest it has been for eight months.
 

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