The latest Market Report from international property and construction consultancy Gleeds has revealed industry concerns over the impact of the government leadership shake-up. Over half of those questioned said they feel the current political environment is negatively affecting investor confidence, making it one of the top three threats to the growth of the construction sector in the UK.
Credit: Gleeds
Andy Ellis, Managing Director at Gleeds UK
Homegrown instability is being compounded by existing worldwide pressures, as the United States’ war with Iran continues despite the promise of a deal to secure the Strait of Hormuz. Although the figure fell from 50% in Q1 to 39%, ‘global conflicts’ was once again cited as the primary threat this quarter, and almost 60% of respondents still claim to be worried about possible materials shortages and price hikes as volatility in the Middle East continues.
Commenting on the findings, Andy Ellis, Managing Director at Gleeds UK said: "Although the survey opened prior to the resignation of Sir Keir Starmer, the unpredictable global and domestic picture is clearly still a huge area of concern for those operating in the construction sector. I believe markets tend to adapt relatively well to clear-cut political change, but uncertainty is damaging to an industry that needs confidence if it is to succeed.”
“This desire for clarity may explain why over 80% of respondents told us they welcome proposals to designate significant clean energy projects as being of Critical National Infrastructure (CNI) and better protect infrastructure schemes from court challenges through the introduction of a fixed legal challenge window,” he went on to add.
The survey also asked respondents what they thought about the introduction of Vocational (V) Level qualifications from September. The government has pledged a £96 million boost for construction training across new subjects like construction design and bricklaying, but a third of those quizzed said they felt cross-industry collaboration would be vital to the success of the new training programme. Around a quarter said ensuring teaching staff had industry experience would be essential, with a similar number keen to see AI and digital tools training embedded in learning.