Housebuilders are optimistic about the future despite uncertainty following the EU referendum, with average five-year investment plans up by 17% year on year, a study has found.
Some 42% of housebuilders surveyed for the second annual Lloyds Bank Commercial Banking report said their growth forecasts had improved since the EU vote.
This compared with 27% that said they had declined. Housebuilders are now predicting an average growth of 28% over the next five years, up from 25% last year.
However, key obstacles identified for the sector included the rising cost of materials, the current planning system and the lack of skilled workers in the industry. Over a third of the 100 businesses surveyed also said that the uncertainty following the EU referendum result was their main challenge.
Pete Flockhart, head of housebuilders, commercial banking, Lloyds Bank, said: “Given the challenges that housebuilders face, the sector is painting a relatively optimistic picture, with improved growth and investment forecasts compared with last year’s survey.
“The wider uncertainty, coupled with the rising cost of materials, presents some challenges but the industry is taking steps to tackle these issues head on, and still plans to grow.”
Stewart Baseley, executive chairman, Home Builders Federation, said: “The industry is pushing the skills agenda hard. If we are to build more high-quality homes we simply have to increase industry capacity. We are looking at how we build our individual sites more quickly and looking at measures government could introduce to allow SME builders to play their part in delivering more homes.
“If we can continue to create an environment in which the industry can grow, as well as deliver desperately needed new homes, we can play a huge part in driving our economy forward.”
• To send feedback, e-mail louisa.clarence-smith@estatesgazette.com or tweet @LouisaClarence or @estatesgazette
