House building sector witnessing 'challenging' time

Posted: 04 Nov 2008 09:33:04 GMT

            Property News - House building sector witnessing 'challenging' time

The current conditions in the construction industry are "extremely challenging", according to one expert.

Steve Turner, head of communications at the Home Builders Federation (HBF) - the trade association representing homebuilders in England and Wales - said contractors are being forced to scale back new developments because of a lack of demand.

He suggested that the situation was caused by the relative scarcity of available funding for mortgages - something which is forcing homebuyers to delay their purchases for the time being.

"Builders are having to scale back their business to suit the demand in the market," said Mr Turner.

The industry expert added: "Until we get that liquidity back in the market, and we get banks and building societies lending again, then the challenging environment will continue."

Meanwhile, the most recent report from the National House Building Council suggests that there were 23,185 applications to build private sector homes in the third quarter, a massive 54 per cent drop over the same period in 2007.

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