Orders for new residential and commercial property builds have fallen nine per cent in three months, the Office for National Statistics (ONS) has revealed.
The economic downturn has hit the sector hard – in November new construction orders were down 27 per cent on the year.
According to ONS figures, private housing has been hit hardest – new orders were more than halved (down 55 per cent) year-on-year.
Chief UK and European economist at IHS Global Insight, Howard Archer said the government should consider bringing forward spending on public construction and infrastructure.
Mr Archer noted the commercial property sector was in “dire straits” and said the construction industry looks poised for “further weakness”.
Potential investors are waiting for the London market to ‘bottom’ so they can take advantage of cheap commercial property prices.
Emirate Business 24/7 has said UK properties are increasingly attractive to overseas investors.