Housing slump to continue to 2010, survey warns

The housing slump will persist until 2010 as orders plummet and building work falls off from the industrial and commercial sectors, a new survey has warned.

The private house building slump will continue next year but be coupled with sharp falls in the industrial sector, where 37% contractors have seen output drop in the past 12 months.

Industrial work is expected to plummet by 22% in 2008, while the commercial sector will continue to slowdown through 2009 and 2010.

Private housing starts will fall 39% this year, while 41% of contractors have reported falls in social housing.

According to the Construction Products Association’s third quarter trade survey, no respite is in sight.

Construction Confederation chief executive Stephen Ratcliffe said: “It is clear that the dramatic downturn in the housing sector is now being followed by sharp falls in the commercial and industrial sectors.

“This is made all the more painful because contractors are caught in a pincer movement between falling demand and rising costs. The inevitable result is lower margins.”