According to Keeping It Simple Finance, the uncertain state of Brexit is also hitting property development.
In an article discussing why Britain is not building enough houses, the broker acknowledged that Brexit has proved a significant factor in slow house building growth and could continue to do so.
“As specialist bridging loan brokers, many of our customers are business owners and property developers,” it said.
“They tell us that they are reluctant to commit to any new ventures that could be risky at the moment due to the uncertainty for the future, mainly caused by Brexit.
“Until the country can guarantee stability, many individuals responsible for making decisions needed in order for us to move forwards and build more houses will remain curious and unlikely to spend huge sums of money opening factories or training new workers as they just do not know if it will be profitable, or indeed if it could actually prove very costly.”
The broker also highlighted labour concerns meant there could be a shortage of workers willing and able to build much needed properties.
“Unemployment figures across the country are low so not many workers will be looking for jobs and to add to this problem, many European workers who filled lower paid roles have returned to their home countries due to the stronger Euro and concerns about Brexit,” it continued.
“To get more workers, the roles offered will have to be more attractive which will push the cost of building new houses up further
The government said today after a recommendation from MPs that the “importance of EU labour to the construction industry should be taken into account… in setting priorities for Brexit negotiations.
The government said that: “EU nationals make an important and valuable contribution to life in the UK, and Government is seeking an early agreement on the rights of EU nationals in the UK on a reciprocal basis.We have made this a priority for our negotiations.”