Crunch has caused construction slowdown


The global credit crunch has caused a slowdown in the UK’s construction industry, the latest report from the Royal Institution of Chartered Surveyors (Rics) has claimed.

It revealed only one per cent more surveyors reported a rise in work in the last quarter than reported a fall.

"Growth in the construction industry has slowed abruptly in the first quarter of this year," said senior economist David Stubbs.

"Private residential workloads are now shrinking as home builders react to challenging conditions in the housing market by reducing the number of new homes under construction."

Growth in private commercial property investment has slowed despite the continued popularity of London as a centre for firms’ new offices.

Ken Livingston has offered builders some hope with his recent commitment to build 50,000 more affordable homes in London and the announcement that Bear Stearns’ new offices in the capital will go ahead.

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