GDP figures shows the need for planning reform

Following GDP growth of 0.4% in March 2024, April has seen no growth and in key sectors, such as construction, output has again dropped.

Richard Beresford, Chief Executive of the National Federation of Builders (NFB), said:

“The NFB Manifesto, ‘Supporting Construction to Power Growth’, was written with the UK’s GDP struggles in mind. While growth of the service sector should be celebrated, we should be desperately worried about the persistent drop in construction output and fluctuation of output in production.”
Service output rises were greatest in ‘information and communication’ and ‘professional scientific and technical activities’ but worryingly, ‘wholesale and retail trade, repair of motor vehicles and motorcycles’ saw a 0.20 percentage point drop, which caps a three month negative trend.

Production output fell by 0.9%, with mining and quarrying continuing to see the greatest drop of more than fifteen points since April 2022. Manufacturing continues to flatline.
Construction output fell by 1.4%, the third monthly fall, with ‘new work’ seeing the greatest drop. 17.4% of all insolvency was attributed to construction and insolvency in the sector is 36% higher than it was in 2019.

There is a concern that as new, less ambitious or higher cost planning policies start filtering through the system, insolvency will increase again.

Rico Wojtulewicz, Head of Policy at the NFB, said:

“When construction output drops, the economy suffers. This is because construction builds the roads and rail, premises for employers and investors, homes to tackle the cost of living crisis and everything else which enables growth in practice.

High speed rail, airport expansion, heat pump installs, electrification of buildings, freight transport, mining for manufacturing, energy generation and much more is either stalled, or made unviable because of the broken, delay ridden planning process. Until the UK gets a government which puts growth above fear of planning reform backlash from the vocal minority, we will continue to see a stumbling economy which cannot meet its potential.”

EAN Breaking News

Breaking News from the team at Estate Agent Networking. Have a new story to share with us? Then please get in contact today! When and where we can we will refer to third party websites with a 'live link back' where news was released first.

You May Also Enjoy

LIVING BY THE SEASIDE 2022
Breaking News

COVID five years on: City and coastal trends reverse as homes by the sea take longer to sell

Rightmove’s new report looks at how the market has changed five years on from the pandemic starting Many city and coastal trends have now reversed, with homes near the sea taking three weeks longer to sell compared to 2020, and the majority of buyers in the capital looking to stay rather than leave London A…
Read More
Estate Agent Talk

What it takes to make real estate development financing work

By Daniel Austin, CEO and co-founder at ASK Partners Securing financing for real estate development has become an uphill battle. With interest rates still elevated, inflation pushing construction costs higher, and planning delays introducing further uncertainty, developers face a challenging environment. Traditional lenders, constrained by regulatory pressures and rising risk aversion, have scaled back, creating…
Read More
Home and Living

Signs Your Roof Needs Professional Repair: Don’t Ignore These Red Flags!

The roof of your home is one of its most vital components. It serves as the first line of defense against the elements, shielding you and your family from rain, snow, wind, and UV rays. A sturdy roof also enhances the energy efficiency of your house, helping to regulate temperature and reduce heating and cooling…
Read More
for sale sign london
Estate Agent Talk

Cheap Local Estate Agent

How much is the average estate agency fees in England for 2025? The figure of 1.42% (including VAT) is the average estate agency fee in 2025. This average fee for selling your home can vary with figures between 1% and up to 3.5%, there may be some lower and higher too. How you are looking…
Read More
Estate Agent Talk

The Future of Real Estate: How Technology is Revolutionizing the Industry

It is also evident that the real estate industry is going through a lot of changes mainly due to changes in technology. Technology is changing almost every aspect of the industry and this includes the purchasing, selling, and advertising of properties. Consumers need a more efficient and enhanced form of transactions, real estate professionals must…
Read More
Breaking News

Halifax House Price Index – Average UK house price falls in March

• House prices fall by -0.5% in March (vs -0.2% in February) • Average property price now £296,699 (compared to £298,274 in previous month) • Annual rate of growth remains at +2.8%, unchanged from February • Northern Ireland sees house prices rise at fastest pace (+6.6%) Amanda Bryden, Head of Mortgages, Halifax, said: “UK house…
Read More