Everest industry news
Home improvement looking prudent as construction industry wobbles
20 November 2008
A leading UK commercial property consultant has claimed today (November 20th) that developers are suffering from reduced finances and confidence as a result of the credit crunch.A recent study of the third quarter of 2008 by Driver Jonas revealed that total construction activity is down by 20 per cent over the past six months.
Now Andrew Duggan, head of research for the firm, has explained that developers are worried about filling new builds and are in the same boat as homebuyers as banks are unwilling to lend to them.
He said: "Firstly, the slowdown in demand the developers have all seen due to the economic downturn so there's reduced developer confidence in the fact that they will be able to lease these buildings once they are complete.
"The second issue is the availability of finance in that developers all struggle to get finance to build the buildings and the banks due to the credit crunch."
With the apparent paucity of new properties, some homeowners will be looking to extend their own homes instead, with conservatories proving particularly popular after planning permission laws were relaxed recently.
The Royal Institution of Chartered Surveyors released a residential letting survey in October which found that sellers and buyers are increasingly turning to renting.
