industry news 5 BREXIT Industry expresses concerns over Brexit result
Following the UK’s vote to leave the European Union, housebuilders and experts from across the sector have been quick to speculate on the likely results of Brexit. The responses range from predictions of migrant workforces being hardest hit, to confidence in the industry’s resilience to tackle the ongoing housing crisis.
from the EU following Brexit: “The UK con- struction industry has been heavily reliant on migrant workers from Europe for decades now – at present, 12 per cent of the British construction workers are of non-UK origin. They have helped the construction industry bounce back from the economic downturn when 400,000 skilled work- ers left our industry, most of which did not return. It is now the Government’s responsibility to ensure that the free-flowing tap of migrant workers from Europe is not turned off. Berry added: “The next few years will bring
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unprecedented challenges to the construction and house building sector, and it’s only through close collaboration between the Government and industry that we’ll be able to overcome them.” Tom Curtin of community consultation firm
Curtin & Co expressed similar concerns that the skills shortage could be further hit by the vote, explaining: “Housebuilders could now find it harder to recruit workers from the EU to address the skills shortfall in the development industry. This would likely then have a knock-on effect on the number of houses built every year, making it harder for the Government to meet its very ambi- tious targets.” He also said challenges could be posed to
meeting tough housing targets in emerging Local Plans and Strategic Housing Markets Assess- ments, “as growth forecasts are now outdated.” However, John Elliott, managing director of
Millwood Designer Homes, welcomed the vote on the basis of ‘red tape’ objections, saying: “For many years, the EU Habitats Directive has had an unnecessary impact on housebuilding. The mere hint of great crested newts or slow worms on a site, which are prolific in the south east of Eng- land, can delay building for months. “Our exit from the EU will stop the continual
flow of red tape and see our housing market grow and flourish without unnecessary constraints placed on building much needed new homes.” Home Builders Federation deputy chairman,
Peter Andrew commented that it was “too early to understand all the implications of the Brexit vote for housebuilders. “However,” he added, “it is clear that after
decades of undersupply we face an acute housing crisis and demand for new homes will remain high. We will continue working with Govern-
rian Berry, CEO of the Federation of Master Builders (FMB), quickly raised concerns about the loss of skilled workers
ment and others to ensure we can deliver the number of homes the country needs in the com- ing years.” Julia Evans, CEO of testing body BSRIA,
called on the Government to address the many questions Brexit has raised: “Government needs to take the lead and show direction now. With the current housing shortage crisis – we ask how are we going to find the workforce with the right skills to build these? But we must not lose sight of the fact that house building volume cannot be at the expense of quality – so such skills shortage are even more acute. Evans added: “We also ask Government where
direct investment will now come from without EU financing and backing? If the Government is not going to make any necessary investment – where will it come from?” Monika Slowikowska, founder of Golden
Houses Developments, argued that leaving the EU will be a huge shock to the construction industry: “Britain leaving the EU will have a cat- astrophic effect on the construction industry. Everyone is in shock. Property analysts are pre- dicting an immediate slowdown in transactions. By leaving the EU, and based on our projects, we predict that the cost of labour could increase by an extra 15 to 20 per cent.” Julie Hirigoyen, CEO of the UK Green
Building Council hopes the green agenda is not affected: “Both economic and political uncer- tainty will have some people asking whether the green agenda needs to be de-prioritised while business goes into fire-fighting mode. This must and need not happen.” Iain McIlwee, CEO of the British Woodwork-
ing Federation (BWF) commented on the effect it will have on the manufacturing sector:“We will be lobbying to ensure that the manufacturing sec- tor is not left to struggle through uncertainty, but is placed in an incubator ensuring that we can start growing again, adding jobs and value to the new economy. Initially this must come through tax breaks, incentives to employ, and light-touch legislation. We must also ensure that public sec- tor procurement, now unfettered by EU policies, very carefully measures and takes into account the socio-economic impact of decisions within specification. James Roberts, chief economist at Knight
Frank reminded that the UK is still a desirable market: “Ultimately, it should be remembered that the UK is a country with 60 million wealthy consumers, and a high skill workforce. “The underlying strengths of the UK economy
remain in place, and ultimately real estate is an investment that works best for those who pursue long-term goals.”
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