Sean Keyes, CEO of Sutcliffe shares his predictions for 2024.
“Looking ahead to 2024 it is my view that the construction industry will remain robust and at some point, there is bound to be a change in government with both political parties under pressure to build more homes to reduce the housing shortage and replace schools and hospitals that have been blighted by the RAAC saga, especially as they have not been replaced at their original intended design life. This will be a boost for the construction sector and will recreate wealth and improve quality of life.
“There is great pressure to innovate within the construction sector, and modern methods of construction are being embraced to reduce construction costs, improve sustainability and tackle the labour shortage. However, this represents only a small proportion of the construction sector, which reflects the reality of the reluctance to change as in 1970 RAAC concrete was viewed as a modern method of construction – hence some people’s caution. The use of modern methods will undoubtedly grow in 2024.
“As the cost of university education rises, I anticipate that more Gen Z’s will realise that a personal debt of £50,000 to obtain a degree will never be repaid, leading to a rise in apprenticeships for school leavers. I believe degree apprenticeships are the future and these should be fully funded by the Government with similar schemes to bring those out of unemployment and into the workplace.
“Surprisingly as inflation cools, the positivity that this brings to the industry can be easily and quickly felt which will hopefully mean that in 2024, we see the first reduction in interest rates since December 2021. This will then enable prospective purchasers to buy homes more in line with historical interest rates. This would be a boost to home ownership and the economy and will be quickly felt. Sadly I don’t believe we will see interest rates below 1% again in my lifetime.
“The UK economy is on a path to net zero which won’t be achieved overnight and the minute we start to fully embrace it, we will start to see positive changes. I do believe this will lead to major and significant growth of the UK economy and if we embrace it, we will regain some of our prestige on the world stage. Personally, I would like to see all of the terraced houses in all northern cities receive government grants to reduce the energy waste in these homes. What a difference this would make!”
