18 Jan 12 How The Construction Industry Has Been Affected In The Economic Downturn In The UK

How the construction industry has been affected in the economic downturn in Britain can clearly be seen if you visit the country. There are a number of unoccupied executive apartments across the country that appear to be relics of the more beneficial previous years. It seems strange to think that this era was only a few years ago.

There was a time when property was booming. Inevitably in the economy there are boom years and bust years. During their time in government New Labour were fortunate to experience a boom period. During this time prices of properties increased and many people became rich due to the massive rise in house prices. It was also a time when people had more access to credit. At the same time this meant purchasing holidays, properties and other items that helped to boost the economy.

In England this was clearly illustrated in the Eighties. It was a time of social mobility when the Conservative Prime Minister Margaret Thatcher declared the end of society. This signalled the rise of the yuppie as people sought to become rich on the stock market. Unfortunately this would also eventually lead to economic problems that would see three million people unemployed, not helped by closure of mines and problems in manufacturing.

The end of the twentieth century saw New Labour come into power. This was a time when bankers were encouraged to take risks and people found it easier to get hold of credit. A lot of people decided that it was sensible to invest in property and decided to use their credit to speculate on the market.

This inevitably meant that a lot of proposed construction projects were cancelled. This included the New Labour program to build new schools and to overhaul existing schools. Furthermore companies dependent on government contracts went into administration, further endangering jobs. There has been some recovery in the sense that new academies and free schools are being built.

The problem is further complicated in that it is estimated that one million homes need to be built in order to house the population. Currently there are a number of people applying for social housing. At the same time there are a number of executive apartments and other properties that are currently not being lived in. In some places this has led to a rise in squatting.

The news is not entirely bad. In recent years there was the building of the new Wembley stadium, one of the most expensive stadiums built in history. The 2012 Olympic Games have also led to a series of regeneration programs in East London.

How the construction industry has been affected in the economic downturn in the UK appears on the surface to be very negative. There is the hope that the economy is soon to recover. It is estimated that a million new homes need to be built and this demand is unlikely to go away. While this may be difficult times for the construction industry a boom may well be around the corner after this current bust.

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