Tuesday morning saw the release of the latest construction and GDP figures. There is good news and some very bad news. The good news is that it is looking more and more likely that Britain wasn’t actually in a double-dip recession after all. Some closer inspection of the data from that time shows that the UK economy wasn’t suffering as bad as once thought.
The bad news however is that construction is now at it’s lowest level since 1998. A clear sign that despite the Government’s “best” efforts to jump-start the sector, they just simply aren’t working. It should be something we need to worry about, as it is yet more proof that our economy is becoming more and more dependent on the financial sector, which has proved to be less than reliable in recent years, and that we remain incapable of boosting one of our oldest and biggest sectors.
The construction sector is an important one to the British economy. It used to be one of the powerhouses of the UK, providing endless jobs, profits and keeping Britain one of the leading construction countries in Europe. Now, with an over-reliance on the financial services sector and a severe lack of help from both banks and Government when it comes to mortgages, construction has gone fifteen years back in time.
It is awful to think about how many jobs have been lost, both skilled and low-skilled. Yet the frustrating part if that there is an active housing shortage and a 20-something generation, like myself, desperately trying to get on to the housing ladder. It is crazy to think that a whole generation is still living at home, when the previous one at the same time in their lives were already moved out and having kids.
Frustratingly, there is a construction boom waiting to happen. All it needs is some straightforward, not strings attached funding and some backing from the banks to let it happen. The boom lies with my generation, the 20-somethings. Give them a TRULY affordable housing solution, with more lenient but controlled lending from the banks both to the house builders and the first time buyers and I believe that it could really kick start the construction sector and get a very crowded generation out on their own two feet.
I can’t see much relief on the horizon for the construction sector, which is still going to have a negative impact on the associated industries, fenestration included. Window companies, plasterers, plumbers, electricians, builders, roofers and everyone else linked with construction has suffered along with it. But until the Government starts to believe we can build our way out of recession, there may be quite a long road ahead.
