UK construction and property
- Output | ONS data shows that new work fell 0.4% in November, led by a 5% fall in new housing, which was largely driven by a wetter-than-average month.
- Drainage | Government proposals to tackle surface flooding and sewage pollution will remove a developer’s automatic right to connect to an existing drainage network unless it has an approved sustainable drainage system (SuDS) in place.
- Recession | Industry forecasters have published their views of what 2023 holds for the sector. Experian has forecast a shallow recession of -1.7% this year caused by inflation, higher borrowing costs, and labour rates, but expects that this will convert to a modest 1.1% growth next year. The Construction Products Association is often less optimistic than Experian and forecasts a 4% contraction this year, primarily caused by a 7% fall in new housing work.
- Project bank accounts are being used on National Highways projects with firms being automatically enrolled. The plan aims to provide some protection against contractors becoming insolvent.