Construction industry reacts to General Election

Industry gives opinion on what a Conservative Government means for construction.

After countless opinion polls suggesting the closest General Election for a generation, the results have been astonishingly one-sided, with David Cameron commanding an overall majority by going past the magical number of 326. 

This is a major shift from coalition politics and having a parliamentary majority and a clear mandate will, as the Royal Institution of Chartered Surveyors (RICS) told UK Construction Media in the run-up to the Election, allow the new Government to get through a Budget, Spending Review and Queen’s Speech, as well as “take some difficult decisions on big infrastructure projects which may not be universally popular.”

In its Property in Politics paper, RICS outlined what it would like to see from the next Government. 

This includes a recommendation that the industry works in partnership with the next Government to establish a new Housing Observatory to independently assess housing needs across the country, while giving local authorities the chance to make more informed choices about how to achieve housing needs at a local and regional level. 

Planning needs to be more responsive to customers according to RICS, and delays have to be reduced as well as cost to the public and private sectors in order to meet housing and infrastructure targets. 

RICS call for “urgent action” to build on construction resurgence to create a more robust and confident construction sector. 

Housing is a key area that the industry seems to think the new Government must get right and The Chartered Institute of Building (CIOB) stressed the significance of the industry to the UK economy. 

Eddie Tuttle, Senior Policy & Public Affairs Manager at the CIOB, believes the new Government will be judged on its ability to deliver “long lasting change” and called for a boost to the existing workforce while tackling the skills shortage. 

He said: “With a shrinking skills base, the sector is facing a number of challenges – not least the need to deliver more homes and infrastructure than we have witnessed previously. 

“Whilst pledges that detail a commitment to the number of apprenticeships and graduates represent a significant shift in the right direction – and will undoubtedly help the industry with its response to the current skills shortage, there isa pressing need to change the image of the construction industry in order to attract the best, and the most skilled individuals. 

“To achieve this, the industry needs strong leadership and greater recognition across the political spectrum of its strategic importance. 

“By establishing a close dialogue with industry professionals, this Conservative-led Government has the potential to raise the profile of construction and alter the public persona of a career in construction.

“The success of the next Government will be measured by its ability to deliver on its pledges and work with industry to deliver real, long lasting change.”

The prospect of a Conservative Government has been welcomed by Joshua Raymond, Chief Market Strategist at www.cityindex.co.uk who believes it will provide market stability that can ultimately benefit the industry. 

He said: “What’s clear is that with a Conservative majority, there will be a strong and consistent Government with a next to no chance of a new election before the five-year term. 

“That consistency brings confidence to the markets, and alongside that is the general relief that a Tory Government is more beneficial for the UK economy and UK business than any of the alternatives.”

Head of Residential Research at JLL, Adam Challis, reacted to the Conservative victory by declaring it “good news” regarding the housing market but he stressed that work must begin to improve supply of new homes. 

He said: “These results provide an even stronger Conservative mandate than under the previous parliament. This is good news for the housing market, particularly in London. 

“We expect an immediate boost to the Capital, where Labour policy ideas were acting as a drag on activity. Price growth this year should hold at circa 5-6%.

“The real job that begins today is to set out a clear plan to boost new home supply. A stronger house building sector is the only way to solve the UK’s housing crisis, while also adding construction jobs.”

JLL’s UK CEO, Guy Grainger, added that policy continuity can only be positive for the housing market. 

“The continuity of main policy objectives for the past five years will be very helpful for investors and developers in the housing market,” he said.

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