On 28th of January Stephen Delahunty wrote in Inside Housing, According to him,
The mayor of London has warned that rising construction prices in some sections of the metropolis could lead to a big slowdown due to inflation and labour shortages.
Today, Sadiq Khan warned that the pandemic’s combined impact with Brexit is hurting housebuilding in London.
My Khan cited a number of developments that have been harmed by these concerns, including one in south-east London where costs have increased by 45 percent due to tender returns.
Another development recorded cost inflation of up to 17% in a south London municipality, and a borough in north-east London reported typical cost rises of roughly 10% across the board. As a result, the mayor has renewed his request for the government to give additional grant funds for affordable housing in London, citing the mounting financial strains on councils and housing associations.
According to government data, the cost of construction materials such as steel, wood, and concrete for all sorts of work increased by 23% last year. The increase is about equivalent to the overall increase seen during the previous 12 years.
“The escalating costs of materials we are experiencing across our affordable housing building projects is a major problem,” Geeta Nanda, head of the G15 and chief executive of Metropolitan Thames Valley, said. We’re working hard with the mayor and local governments to create the homes that Londoners require, but we need to address both the skilled worker shortage and the impact of inflation on our projects.”
According to data from the Office for National Statistics, nearly a quarter of construction firms reported a labour shortage in December, compared to an industry-wide average of 14.6 percent.
To address vacancy rates in the construction industry, the mayor has asked the government to create a “coronavirus recovery visa” to assist those industries that are experiencing labour shortages.
The visa should allow workers to stay in the UK for at least 12 months and be tailored to specific industries, such as construction, where many workers want to work independently.