By Staff writer
Long-term stability in the construction industry could be hampered by high energy prices and future prime ministerial changes, according to a report by the Royal Institution of Chartered Surveyors (RICS).
The report says that despite a rise in commercial and residential property construction, confidence in profit has fallen due to high energy and raw material prices, as well as nervousness about prime minister Tony Blair’s exit strategy and its effect on the economy.
“Interest rates are set to rise further and will cool the property market in 2007.
As such, we foresee a market slowdown in the construction industry,” said Milan Khatri, chief economist at RICS.