Development certainty and pro-growth policy at the top of the construction sector’s demands for the government

PRO-DEVELOPMENT policies must take priority if the construction industry is to realise its full investment potential in the future, according to new research into construction industry professionals conducted by multidisciplinary consultancy Pick Everard and planning and development consultancy Lichfields.

With a week to go before the UK election, respondents identified policy changes that the next government could implement immediately to boost growth ambitions and address key barriers to growth. Indeed, 83% of respondents cited political or economic uncertainty as a major obstacle to investment.

A key objective across the sector was the need to create a pro-development policy platform to drive investment activity. 55% of respondents identified the need to achieve comprehensive local plan coverage as a priority, while separate research by Lichfields found that only 22% of plans are currently expected to be operational by the end of 2025.

The need for a long-term industrial strategy was also highlighted, with 40% calling for clear investment pathways, while decisions on public investment in housing (38%), investment in clean energy (39%) and improving the capacity of the national electricity grid (38%) also topped the wish lists of contractors, developers and consultants.

Gavin Mason, Operations Director at Pick Everard, said: “Our research was conducted against the backdrop of political and economic uncertainty, and in a market that is struggling with rising construction costs, reduced public investment, increasing complexity in obtaining planning permission, a persistent skills shortage and a sector that sees more than 4,000 insolvencies a year – the highest of any sector in the UK.

“All these issues will need to be addressed by the new government, which will play a key role in improving the sector’s performance.

“The survey results clearly show that the industry is calling for constructive reform of the current regulations to deliver the construction investment that the country so desperately needs.”

Ciaran Gunne-Jones, senior director, head of economics at Lichfields, said: “We need to see more local plans adopted, opening up more homes and economic opportunities. The next government has an opportunity to work with the development industry to supercharge the UK economy, and do it quickly.”

Further survey results reveal that 96% of respondents expect tender prices to increase next year, with 76% predicting increases of 1-6%. Factors influencing this include the impact of government legislation (26%), construction industry opportunities (20%) and geopolitical volatility (19%).

To summarise the current issues facing the industry, 24% of respondents asked for a review of the current Biodiversity Clearance Gain Regulations, which only came into force earlier this year, with Gateway 2 of the Building Safety Act and Part L Building Regulations (2022), each of which has been widely discussed in construction circles over the past year.

Finally, lower interest rates (36%) and increased investment in training subsidies (24%) were also seen as key to the industry’s growth, with the latter proving particularly important in helping to plug the growing skills gap in construction.

For more information about Pick Everard and the services they offer, visit https://www.pickeverard.co.uk/

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