Brexit and global uncertainty keeping check on rises
A weakening global economy and ongoing Brexit uncertainty mean tender prices will flatline over the next couple of years, Alinea has said.
In its latest market report, the QS said it expects prices across London and the South-east to grow by 2% this year and next, before increasing by 2.75% in 2021.
The figures are the same for its previous report which came out in February.
Its latest report said: “There is nothing to encourage us to change our forecast for London and the South-east tender price indices.”
The consultant said while the UK’s departure from the EU has been dominating the domestic conversation, the global economy was not any more reassuring.
It said: "While the UK lurches to the next phase of Brexit chaos, indicators of economic health are pointing to a weakening global economy and possible recession.
"These are combining to heighten nervousness among international investors and uncertainty across British businesses, with evident impacts on confidence and a reluctance to commit to investment decisions."
Alinea, which is working on a string of tower schemes in the capital including 22 Bishopsgate (pictured), added that ongoing struggles across the sector highlighted the need for reform.
The consultant said: "Each sector of the market is fighting its own challenges and looking to exploit its respective opportunities, with a common theme of the need for structural changes and more dynamic business models.
"The failure of British Steel and the headlines around Kier further highlight supply-side difficulties and the urgency for industry transformation and a broader embracing of modern methods of construction."