The FMB claimed its members saw a 40 per cent drop in enquiries in the last quarter of 2007, with the credit crunch the primary reason behind such a drop.
Brian Berry, director of external affairs at the FMB commented: “Our latest survey of work activity within the building sector is further evidence of a slowdown in the economy and a signal that people are beginning to feel the pinch as mortgage and energy bills increase.
"What is concerning is that, with the exception of Scotland, the drop off in enquiries is consistent right across the UK and for all types of building work, including housing and non-residential buildings as well as for both private and public sector clients."
A large number of people who had found it unaffordable to move because of high property prices had been undertaking building work to add space and value to their current homes, meaning the drop-off could have an additional impact on the secured loans sector.
Darren Pescod, managing director of The Mortgage Broker Ltd, said he believed that many people would have to budget more strictly in the months ahead to stay on top of their finances.
“Many people we have been seeing in January have been concerned by their situations, and not just because of the time of year. I can’t see this improving in 2008 and many people will have to pull back the purse strings and adjust their spending.”
