Commenting the Chancellor’s new willingness to ‘fight for growth’, Daniel Austin – CEO of property investment firm ASK Partners, said:

“The Chancellor has promised a review of government guidance on building major projects to support investments outside of the wealthy and productive south-east of England. With a political shifting of gears globally spearheaded by the US, the UK Government has said it is prioritising delivering growth at any cost, with major infrastructure projects having a key role to play. While the growth-focused approach is welcomed, pursuing large-scale infrastructure projects at any cost risks an excess of borrowing, leading to stubborn inflation and sticky interest rates. These factors will leave the industry questioning the financial viability and delivery of these projects.

“Further, a critical issue remains overlooked: cripplingly high construction costs severely limit the number of projects that can be completed. If construction projects continue to stall due to steep costs and an imbalance between delivery expenses and expected sales, land will increasingly lose its appeal for builders and investors, further exacerbating the project delivery crisis.

“The rise in construction costs is as damaging to project delivery as fluctuating market sentiment and rising interest rates. To address this, the government must consider the broader impact of rising costs on the entire market. A holistic approach is needed and one that ensures financial viability across small, medium, and large-scale developments. One solution would be targeted financial support for the building sector, which could help make construction manageable again. By tackling this issue head-on, the UK can reinvigorate its construction sector and work towards a sustainable boost to robust economic growth via the country’s promising infrastructure potential.”

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