The Recent Economic Downturn Has Knocked down Many Industrial Sectors, and the UK’s Construction and Development Sector Is no Exception, with Both Large and Small Names Succumbing to Its Effects. Firms like Chase Midlands, Regal Executive Homes, Wrekin, a
The recent economic downturn has knocked down many industrial sectors, and the UK’s construction and development sector is no exception, with both large and small names succumbing to its effects. Firms like Chase Midlands, Regal Executive Homes, Wrekin, and William Ashley have collapsed, and several others have had to put the completion of projects on hold while they weather the storm and wait for a better economic climate.
In fact, parties affected by the credit crunch will recall the recession with horror in future as it led to the crash of property values. According to the 2009 Birmingham Crane Survey by Drivers Jonas, only six new construction projects have started in the past 12 months in the area as compared to 21 projects in 2008. Out of these six, the second phase of Masshouse and residential construction at Snowhill, and the second phase of Newhall Square, have all been stalled since the publication of the survey in 2008.
The Crane Survey also reports that as compared to last year, businesses would require less office space with the demand falling by about 1 million square feet. Consequently, only two new office projects were reported to be in the works.
However, the scenario is not completely bleak as there are three big projects slated for the coming year or the year after, i.e. the renovation of New Street Station, Library of Birmingham, and the Jewellery Quarter public square, all a good boost to the Birmingham business sector. Hopefully, these projects as well as the remaining demand for desk space will inject some life into the market once again.
