GDP figures shows the need for planning reform

National Federation of Builders

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

Estate Agent Talk

Top Tps For Buying Your First Property

Buying your first property is an exciting milestone, but it can also be overwhelming. With the right knowledge and preparation, you can navigate the process smoothly and make informed decisions. Here are some top tips for first-time property buyers in the UK, designed to be simple and easy to understand. Top Tps For Buying Your…
Read More
Estate Agent Talk

How much less can you expect if you sell your house for cash in 2024

When selling a house in the UK, opting for a cash sale often means accepting a lower price compared to a traditional open market sale via an estate agent. This reduction is down to a few factors including convenience and the speed of the transaction, which can be highly attractive to sellers looking to cash…
Read More
Rightmove logo
Estate Agent Talk

Rightmove’s weekly mortgage tracker

Headlines   The average 5-year fixed mortgage rate is now 4.97%, down from 5.91 % a year ago The average 2-year fixed mortgage rate is now 5.35%, down from 6.42% a year ago The average 85% LTV 5-year fixed mortgage rate is now 4.97%, down from 5.90% a year ago The average 60% LTV 5-year…
Read More
Estate Agent Talk

Preparing Your Essex Home for Sale: A Step-by-Step Guide

Selling your home can be a complex process, but you don’t have to navigate it alone. Experienced estate agents in Loughton and across Essex play a crucial role in helping you prepare, market, and sell your property. Their expertise and local knowledge can streamline the selling process and maximise your chances of a successful sale.…
Read More
Estate Agent Talk

Optimising Your Property Investment With Financial Expertise

Property investment can be rewarding, especially when approached with the right financial expertise. A well-planned property investment strategy, supported by professional advice, can significantly enhance your returns and minimise risks. Ready to learn more? Keep reading as we share tips on optimising your property investment with financial expertise. Leveraging Mortgage Brokers For Success Mortgage brokers…
Read More
Breaking News

Breaking Property News – 09/07/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Fine & Country increases international marketing and growth focus   Premium estate agency, Fine & Country is increasing its focus on international growth by launching new marketing initiatives to support its existing international network as well as expanding into new markets. This underscores Fine & Country’s commitment…
Read More