UK house builders are sceptical over the Government's target of delivering one million new homes by 2020, according to a new survey.

Research carried out for industry consultant McBains has revealed the construction rate of new homes across the UK has fallen since the EU referendum.

Out of a poll of more than 400 companies, 38% have increased their output over the last year, compared to 50% of firms when asked the same question during a survey in May 2016.

In addition, less than one in three think the government will meet its housebuilding targets, while more than one in three expect Brexit to affect their ability to recruit skilled labour.

Overall, 30% of housebuilders think the government's ambition of building a million homes by 2020 will be achieved.


When asked what the biggest issue is facing the company at the moment in terms of restricting the amount they can build, 28% of respondents cited land availability while 24% said skills shortages.

On what they think the government should do to increase housebuilding, 36% of respondents said it should release more publicly-owned land while 32% think the government should incentivise large construction companies to develop more quickly.

However, 52% of builders said they were optimistic about the state of the housing market overall (18% are very optimistic) in addition to 65% of respondents in London.

Michael Thirkettle, Chief Executive of McBains, said the survey shows the shadow of Brexit "still looms large" over the housebuilding industry.

"Uncertainty over the terms of EU withdrawal are having a real impact, with the survey showing a weakening of demand because UK investors are biding their time on committing to new projects," he said.

"Not enough land is the reason most housebuilders think the government's target for a million new homes to be built by 2020 will not be achieved.

"The industry was hoping for the Budget to provide a shot in the arm for growth, such as freeing up more land like greenbelt and simplifying planning permission. Yet although the Chancellor promised to introduce planning reforms to ensure more land is made available, there was no detail on how this would be achieved."

(LM/MH)