ABOUT 80 per cent of Scottish housing associations and co-operatives foresee a possible negative impact from the UK leaving the European Union, a survey reveals.
The key areas of concern highlighted in the report, published today by the Scottish Federation of Housing Associations (SFHA), are the ongoing uncertainty, the impact of this on financial markets and the effect on private finance, and consequences for the construction sector’s supply chain, workforce and costs.
Nearly 70 per cent of respondents believe Brexit will reduce the capacity of the construction workforce to deliver on new social housing developments.
Mary Taylor, chief executive of the SFHA, said: “The capacity of the construction industry to deliver new social housing is paramount at a time when 50,000 affordable homes are to be delivered within five years. It is therefore a huge concern that almost 70 per cent of respondents to our survey think Brexit will decrease capacity of the construction workforce.”
More than 80 per cent of respondents think Brexit will impact on the supply chain of trade and building materials. This effect is expected to manifest itself through increasing costs in general, given the inflation and exchange rate environment, and in terms of rising costs for building materials and components in particular.
The SFHA report notes that many components are sourced from other EU countries, which could potentially result in cost increases or supply shortages if trade agreements are not in place when the UK leaves the EU.
Sterling’s tumble since the Brexit vote has raised the costs of imported materials, and has already fed through into surging consumer price inflation.
The SFHA observed that some of its members did mention opportunities that might arise from Brexit for the “development of greater supply of Scottish and British construction trades and workforce”. It noted that, “not surprisingly”, 90 per cent of respondents believed Brexit would “significantly restrict” or “restrict” access to three investment options in particular – the European Investment Bank, European funds such as the European Social Fund, and the European Regional Development Fund.
The SFHA said: “Many communities have benefited from the wider community development work which housing associations do, much of which is currently paid for using EU funds.”
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