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DevDosh Ltd really do feel like a broken record once again Brexit is the topic of choice when it comes to talking about the UK property market well indirectly anyway.

The rate at which the UK construction industry is growing has lost momentum in the second quarter because of the inability to secure investment due to concerns that are still floating around about the Brexit situation.

The recent report DevDosh Ltd found issued by the Royal institution of Charted Surveyors (RICS) highlighted a change in direction as growth diminished in the second quarter compared to accelerated growth in the first quarter of 2017 as its fastest rate since the Brexit decision.

A net balance of 21 per cent respondents reported an increase in total workload in the second quarter, down from 27 per cent recorded in the previous quarter, RICS said.

Construction activity slows downs by more than expected in June

The private commercial and industrial segments felt the most significant downturn.

In DevDosh Ltd opinion, the UK property developer market has been one of the most pronounced victims of the Brexit vote, with a reasonably sized proportion of developers slowing construction projects to lessen exposure on the books.

Banks has stiffened lending criteria decidedly further exacerbating the problem as smaller builders and developers struggle to find the funds they so desperately need.

The UK RICS Construction and Infrastructure Market survey showed that financial constraints, due to economic uncertainty driven largely by Brexit and the subsequent election, was noted as the most significant impediment to building activity.

The survey stated 79 per cent of all participants cited it as a concern, marking the highest level in four years. Other reasons included difficulties with access to bank finance and credit and cash flow and liquidity challenges.

“Economic and political uncertainty appears to be weighing on sentiment, but all things considered, current conditions and year-ahead workload expectations are holding up rather well relative to the longer-term trend,” said Jeffrey Matsu, Senior Economist at RICS.

“Given the ongoing nature of Brexit negotiations, it remains to be seen what impact this will have on financial conditions,” he added.

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