Construction work has slowed, affecting all sectors of the building industry, the Federation of Master Builders (FMB) has revealed.
Its State of Trade Survey showed a poor outlook for the industry, which has been hit hard by the worsening housing market.
“The situation is deteriorating at an alarming rate,” said director of external affairs Brian Berry.
Mr Berry advised the government to take “urgent action if the building industry is not to suffer any further”.
“Simplifying the planning system would make a huge difference to builders and allow them to get on with their job,” he added.
Some commercial property builds in London have been put on hold until global economic conditions improve.
However, there are always new offices in London available to firms seeking to re-locate to the city.
The FMB study also found builders in Greater London were the most optimistic when asked about future employment prospects.
Overall, it showed 14 per cent of respondents predicted work would be increased, while almost half said it would be reduced.