Cloud Over Builders may have Silver Lining for Landlords

by Property118.com News Team

17:15 PM, 8th February 2012
About 9 years ago

Cloud Over Builders may have Silver Lining for Landlords

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Cloud Over Builders may have Silver Lining for Landlords

Buy to let looks to continue to prosper as surveyors presented a drab picture of the construction industry.
The government has admitted the country needs an influx of infrastructure and housing projects to boost the economy and provide much needed homes over the few years.

Although difficulties in sourcing mortgages are holding back home buyers, in the long term more homes need building to meet demand.

The UK needs 220,000 new homes every year – and less than half that number were built last year, according to the Communities and Local Government Department.

However, only 14% of surveyors reckon the government will raise the cash wanted from pension funds and other institutional investors to meet ambitious construction targets set by Chancellor George Osborne in his autumn budget statement.

According to the latest UK construction industry review from the Royal Institution of Chartered Surveyors (RICS), covering the last three months of 2011, the number of new projects is falling.

RICS reports private sector projects are ‘flat’ while 17% of surveyors saw a decrease in the number of public sector projects.

Across the UK, a widening gulf is appearing between spending in London and the South East rising and that for the rest of the country faltering.

Surveyors expect no improvement for the rest of this year. Four in 10 surveyors predict falling profits for their businesses – the 16th quarter in a row they have put forward a pessimistic view.

Simon Rubinsohn of RICS said: “With workloads continuing to fall and costs slowly increasing towards the end of the year, the outlook for the construction industry remains rather downbeat with no prospect of improvement in sight.

“Particularly worrying are the questions being raised over the government’s plan to secure institutional funding for infrastructure projects. We would hope that this scepticism proves to be overly pessimistic, but the responses highlight the sizable job the government still has to do in convincing industry professionals that this approach is going to deliver.”



Comments

5:00 AM, 9th February 2012
About 9 years ago

So they now accept the country needs to improve and replace infrastructure.
How about replacing all the council housing sold off.
Instead of giving QE to the banks why not give it by instructing builders to start a massive council house building programme.
When built the govt will pay housing benefit which will come back to itself and pay for itself  in about 15 years rather than going in the pockets of the PRS.
The PRS can never hope to match govt capability in resourcing social housing.
So why not take the bull by the horns and get the economy building houses for affordable rents.
It would be easy to resource as the govt can borrow cheaper than anybody.
This way all the housing benefit doesn't disappear into the pockets of the PRS.
The govt outlay will be less and by investing in this vital infrastructure for the economy it will be still there years later saving the govt money in reduced housing benefit costs.
The govt needs to replace the 'family silver' that should never have been sold off in the first place.They will also have to introduce flexible tenures aswell and having affordable housing will encourage labour mobility.
However for such a housebuilding to be effective all EU migration needs to be stopped and such housing should NOT be allocated on the basis of housing need but on how long you have been on the list.
If this isn't done all that will happen is eastern europeans will just continue to come here and demand to be housed in one of the nice new council houses..
After all apparently you only have to sell the Big Issue for a few months and then you qualify for all the benefits under the sun.


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