Construction leaders have told the government it needs to act urgently to help builders left without credit and credit assurance cover.
The CBI Construction Council has asked for a construction Tsar to be appointed and greater efforts made to increase lending.
John McDonough, chairman said the lack of money has led to commercial property construction delays and reduced the prospect of a recovery in the housing market.
“Unless the government takes bold steps to kick-start lending across the board, we will see more construction firms going under and more skilled jobs lost, which will be difficult to replace when demand picks up again.” he said.
Mr McDonough also noted efforts should be made to support the provision of trade credit insurance. “Firms need to be confident their cover isn’t going to get pulled unexpectedly half-way through a contract,” he added.
Many firms prefer to put their commercial property developments on hold and wait for new investment, although London Bridge’s Shard, Hines’ tower in Canon Place and Heron Tower are all set to go ahead, Contract Journal has reported