44% of master builder companies have reported in the first three months of 2024 that their business is on track to make a loss or fall below expected margins.
The findings were revealed in the latest State of Trade Survey from the Federation of Master Builders (FMB), with 65% of respondents noting an increase in material costs over the past quarter has led to them having to increase prices.
Brian Berry, chief executive of the FMB, said that while Q1 of 2024 has shown ‘stabilisation’ for small builders, it is clear the situation remains concerning.
“The data being seen for workloads and enquiries are settling in negative figures, similar to those seen between 2010 and 2013, when the UK economy was particularly impacted by austerity measures and limited spending power,” he added. “There are clearly deep-rooted problems within the UK economy that need addressing.
“There have also been positive signs to take from these figures. We have seen improvements in the availability of skilled workers, with bricklayers and carpenters becoming easier to hire, and overall workloads are up by 6% on the previous quarter. However, with almost half of members reporting a decrease in enquiries, more than two thirds report escalating material costs, and 44% of master builder companies say their business is on track to fall below expected margins this year; it is adding up to a deeply alarming picture.
“The next General Election is expected in the coming months. Tackling the housing crisis is going to be one of the major issues which decides the outcome. Last month the FMB launched manifesto, ‘Growth from the ground up’ setting out a positive plan for housing and planning; energy efficient retrofitting of existing homes; and the need for long term skills and training  to turbocharge economic growth. The next government must take this opportunity to deliver long-term sustainable change.”
