Expert Reveals Hopes New Financing Arrangements Will Be Welcome Boost To Sector

The 5.2 per cent fall in construction activity across the second quarter of 2012 is unfortunately not a surprising figure, according to a construction law specialist who hopes Government plans will have a positive impact on the industry.

New figures from the Office for National Statistics revealed that GDP dropped by 0.7 per cent, which is the most significant reduction since the first three months of 2009.

The significant drop in building activity has been blamed by industry analysts on the poor weather across the period which took its toll on a range of projects across the UK, as well as the economic climate preventing further spending on a number of initiatives.

Julie Morrissy, a Partner and specialist in construction law at Irwin Mitchell, said that while the figures did not make the best reading, there will be few who will be shocked by current trends.

She outlined: “The figures are undoubtedly disappointing but not altogether surprising for the Construction sector which has for some time been looking forward to a bleak few years. 

“But we must remember it was only last week that the Government announced plans to underwrite infrastructure investment for public private partnership schemes.

“Provided the financing arrangements put in place to facilitate this are sufficiently robust to give potential investors comfort that their money will be secure in the long-term, we should start to see opportunities later this year which will generate construction activity at all levels of the supply chain.”