The RICS Construction Market Survey indicated that new enquiries for housing grew at their slowest pace since 2006; with 16 per cent more chartered surveyors reporting a rise than a fall in the fourth quarter of 2007 – a drop from earlier findings.
Surveyors within the UK mortgage and housing markets also revealed that they expected below-average profit margins, while confidence that workloads would increase continued to decline.
David Stubbs, chief economist at RICS, admitted that the recent credit crunch had led to a downturn in the market, which had in turn slowed construction.
He explained: “A slowing housing and commercial property market, following the credit crunch and the Northern Rock turmoil, have started to hit the construction sector.
“Doubts are likely to intensify over the ability of the government to meet its ambitious house building targets. Indeed, it is worth noting that new housing starts have already begun to stagnate in recent quarters.”
However, responding to the study, Adam Sampson, chief executive of charity Shelter, indicated that there was enough time for the government to meet its objectives, with over a decade to increase housing numbers and building rates in the UK.
He commented: “There is no doubt that the current worsening economic climate does impact on the housing market and delivery of new homes.”
Sampson added: “However, the target to build three million new homes is still around 12 years away. Just 12 months after the government’s announcement, it’s far too soon to be making excuses about why this target can’t be met.”
