FMB: It's 'business as usual' for two-thirds of SME house builders - Sunsquare
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FMB: It's 'business as usual' for two-thirds of SME house builders

Overview

New research from the Federation of Master Builders (FMB) has found that two-thirds of SME house builders are without any significant, negative changes to their workload since the outcome of the referendum to leave the European Union (EU).

The latest FMB survey is the first of its kind to be carried out among SME house builders since the Brexit result and found that 69 per cent of firms are yet to experience any sizeable changes to their business operations as a consequence of the referendum.

Brian Berry, chief executive, FMB, said: “SME house builders are crucial to achieving the Government’s ambition to build one million homes by 2020, so Ministers will no doubt be bolstered by these initial post-Brexit findings.

“Despite some fears that the referendum result might put new projects on hold, the overwhelming majority of SME house builders are reporting that no decisions have yet been influenced by the referendum result.

“This matches the view expressed by many small construction firms that so far, the market appears to suggest that it’s ‘business as usual’.

“Only one quarter of small house builders have seen any negative effect on their projects from the Brexit decision, and most of these are the result of delayed decisions rather than actual project cancellations.

“Brexit aside, we should not paint an overly rosy picture of the situation facing SME house builders.

“The barriers to building that existed prior to the referendum are still hindering delivery, and as the housing crisis continues to be a pressing concern, the need to empower smaller developers must be a priority for May’s Government.

“To this end, it’s worth nothing that more than half of SME house builders state that the removal of unnecessary red tape should be the most important consideration for the new Government as they begin to negotiate the UK’s exit from the EU.”

However, Mr Berry warned that the UK construction industry as a whole was dependent on the Prime Minister finding a suitable solution to ensuring a “sufficient number of skilled tradespeople from the EU are still able to enter the UK”.

“The Prime Minister insists that freedom of movement is now over and if this is not likely to be replaced by a points-based system – as reported – crucial sectors like the construction industry must be reassured that whatever system does replace it, it is flexible enough to respond to our needs,” added Berry. “Otherwise, the construction skills shortage will be exacerbated and ultimately, it will become a major barrier to delivering the housing and infrastructure projects we so desperately need.”

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