Newly released S&P Global/CIPS UK Construction PMI data for December 2024, showing construction output at a six-month low and housebuilding as the weakest-performing area within the construction sector, demonstrates that there is a long way still to go to tackle Britain’s housing crisis, according to the Federation of Master Builders (FMB).
Brian Berry, Chief Executive of the FMB, commented: “Today’s figures demonstrate the need for significant concern about the viability of the Government’s plans to boost housebuilding rates, with the data showing a decline in output for the third consecutive month. More alarmingly, as we are in the winter months, this has been the fastest reduction since June 2024. With ‘subdued demand conditions’, ‘elevated borrowing costs’ and ‘weak consumer confidence’ sighted by survey respondents as holding back growth, more must be done to get Britain building again.”
Berry continued: “The Government made a promising start, following the General Election, with pledges to build 1.5 million homes and implement significant planning reforms welcomed by the construction industry. However, the FMB have continued to make the case that these goals will simply not be deliverable without a focus on tackling the construction skills crisis; diversifying the housing market from a small number of volume housebuilders; and ensuring changes to planning policy actually deliver for small builders. Despite early announcements, the data shows this must remain the long-term focus for 2025.”
