Insight
Market Intelligence Report 3Q 2024
2 Jul 2024
Gavin Mason
Operations Director
The Pick Everard Market Intelligence Report for Q3 2024 presents a comprehensive analysis of the current economic climate, specifically focusing on inflation, interest rates, and their impact on the construction and development industry.
As the UK anticipates potential political changes with the upcoming elections, the report delves into the expectations from a likely Labour government, their economic strategies, and how these might influence the sector.
Key highlights include:
- Economic Overview: Inflation has met the Bank of England's target, yet interest rates remain high, impacting construction output, which has declined by 5% in the past nine months.
- Cost Analysis: Post-COVID construction costs have surged by 40-75%, influenced by reduced market competition and increased material prices, which are still 39% above pre-COVID levels.
- Policy Impact: Future legislative changes, such as the Building Safety Act and environmental regulations, are significant cost drivers. The industry calls for more coherent planning and reduced bureaucratic delays.
- Labour’s Proposals: Anticipated policies include a national wealth fund, strategic planning reforms, and increased affordable housing initiatives. However, the specifics of implementation remain unclear.
The report underscores the necessity for a stable policy environment to foster growth and urges the new government to address training, skill shortages, and legislative reviews to reduce costs and stimulate the industry.