Brexit Impact on UK Construction Sector, British Architectural Design, Property Development
What Impact Has Brexit Had on UK Construction?
18 December 2019
UK Construction Industry Brexit Impact
Sahel Majali Answers: What Impact Has Brexit Had on UK Construction?
The aftermath of the 2016 UK referendum created huge volatility in the UK markets, with shockwaves felt across the EU. This article will look at the impact of Brexit on the UK construction sector.
Brexit: The Facts
As at the time of writing, Brexit remains in limbo. Negotiations are still ongoing in the UK parliament and with the EU.
There is overwhelming agreement among economists that the ultimate impact of Britain leaving the EU will adversely affect the British economy, reducing UK per-capital income levels.
In the immediate aftermath of the referendum, UK inflation rose by 1.7, equating to an annual cost of £404 per British household according to one study.
UK Shortages of Affordable Housing
According to government figures, three million new homes are needed in England alone over the next 20 years to tackle the country’s growing housing crisis.
Shelter, a housing charity, estimates an immediate deficit of 1.2 million homes, pointing out that younger families have been priced out of the market and ultimately face a lifetime of insecure, expensive private property renting. The charity estimates that there are currently around 277,000 homeless people in England, citing the primary cause as losing their private tenancies.
The UK government announced plans to make affordable social housing a priority, unveiling plans to build 250,000 new homes by 2022.
As Chairman of the Mid Group Sahel Majali points out, the government’s ambitious affordable housing targets have created vast opportunities in the UK construction industry. According to Sahel Majali, UK local authorities are starting to build homes for the first time in more than 30 years. Particularly in the London Borough of Lewisham, there is huge growth in demand for affordable homes.
High-end residential development may be slowing to some extent, but the growing local authority client group is creating steady growth in the market. In addition, the government continues to invest in vital infrastructure, such as schools and roads.
Brexit has already had a tangible impact on many industries, but in terms of the construction sector, there is still reason to remain optimistic.
About Sahel Majali
Sahel Majali graduated from London’s UCL in 1984, with a B.Sc. in Civil Engineering. He graduated from George Washington University in 1985, with an M.E.A. in Construction Management.
Mr Majali established Mid Contracting Jordan in 1991. Today, the business has grown into the global Mid Group, one of the South East UK’s fastest-growing construction companies.
Previously on e-architect:
UK Construction Brexit Impact
Potential Brexit outcomes put the construction and manufacturing sectors at risk
How will the Construction Industry respond to BREXIT?
As our government continues to shock us with their haggling in parliament, the effects of BREXIT are starting to be felt by Clients, Professional and Contractors alike.
Comments / photos for the Sahel Majali Answers: What Impact Has Brexit Had on UK Construction? page welcome