The value of projects being put on hold has increased by almost 30% in the past 12 months, despite a resurgent construction industry.
The recent data, compiled by construction data experts Barbour ABI for Building magazine, illustrates in the 12 months from September 2014 to August 2015, £12 billion of construction projects were put on hold. This compares to £8.6 billion in the previous 12 months, resulting in an increase of 29% in just one year.
The sharp increase in the volume of work being put on hold comes despite the growth the construction industry has experienced over the last two years. One of the major reasons for this is a reaction by clients to increased tender prices by contractors and specialists, which are thought to have risen by 15-20% in the last year alone.
London and the South East experienced the biggest jump in projects being put on hold in the last 12 months, jumping by a significant 49 per cent, followed by North England with an increase of 37 per cent.
Adapted from press release by Joseph Green