17 November 2015
A survey published on 11th November 2015 by Knight Frank has confirmed that the building control regulations, BC(A)R SI.9, introduced in March 2014 and later central bank lending rules are considered by the industry and developers as major barriers to residential construction.
See survey here: PDF “Knight Frank Construction Survey 2015“
“It is clear that a chronic shortage of new housing now exists, with just approximately 3,000 new residential units expected to have been delivered in the capital by the end of 2015, which is just a third of what is required on an annual basis according to our survey.
The survey results show that an overwhelming 98% of respondents indicate that the building regulations introduced in recent years are acting as a barrier to construction while 96% of respondents believe that the Central Bank regulations will also have a negative impact.
The inaugural Knight Frank New Homes Construction Survey has highlighted some key factors that are hindering the construction sector from delivering sufficient new supply to the market and alleviating the current housing crisis from the developer’s and builder’s perspective.”
Summary of findings:
- 98% OF OUR RESPONDENTS STATE THAT BUILDING REGULATIONS INTRODUCED IN RECENT YEARS ARE CHALLENGING TO BUILDING ACTIVITY. RECENT MODIFICATIONS ARE WELCOMED BY ALL STAKEHOLDERS.
- 96% OF DEVELOPERS BELIEVE THAT THE NEW BANKING REGULATIONS WILL HAVE A NEGATIVE EFFECT ON RESIDENTIAL CONSTRUCTION OVER THE NEXT 2 YEARS.
- 92% OF RESPONDENTS EXPECT TO BUILD LESS THAN 50 HOUSES BEFORE THE END OF THIS YEAR.
- 67% OF BUILDERS SEE THE PLANNING SYSTEM AS INEFFICIENT.
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