In a recession, the property market is usually one sector that suffers hard times. Prices drop, credit and fair priced mortgages become hard to find. Those with large mortgages will be some of the worst hit, and along side a slump in the property market, one in the construction industry is sure to follow, isn't it?
I went to see the City council planning Department to see whether they had noticed a slowdown in the number of planning applications received since the credit crunch.
I spoke to Robert Bywater who said: “As far as I understand there has been a bit of a slow down”
As this was not quite as detailed an answer I was looking for, I continued my search, and eventually was able to speak to Mr Paul McGinty of the cities planning department. I asked him whether he had noticed a change in the amount of planning applications in the city, and whether he thought that any change may have been brought about by the current financial crisis. He said that over the equivalent period in 2007, there had been a 21% drop in the number of applications, of all types to the city council. He commented that due to the long, protracted nature of the application process it would be difficult to say for sure whether or not this was directly connected to the crunch.
However, he did mention that the number of staff working in the planning department has dropped by a similar amount in the last few months (not due to the crunch), and that due to this shortage, and the current money saving policies introduced across the board in government, that these staff will probably not be replaced in the current financial crisis.
In related news, there is now slowing the brand new Tithebarn regeneration project in the city centre, it seems as though these plans will go ahead if given the public and council backing, and will play a huge part in the landscape of the city. More information about the project can be seen below.
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It looks as though there will be huge building works over the next few years, so it shows at least one construction company will not be affected by the credit crunch, unfortunately, for every survival story, I fear there will be trice as many going bust.
May 2009
It will not have escaped your notice that there was a lack of comment from building an construction workers in the earlier post on this subject. This was mainly due to the fact many construction companies refused to speak to me about the problems they were suffering at the time. Why this was I could not say, but this time I have had slightly more success talking to actual builders and construction workers, as opposed to council staff.
The construction industry has suffered a 2.4%drop nationwide, with Preston being no different. I met builder Alex Rigby while interviewing people in the cities Jobcentre. This really shows the state of affairs in Preston, as Alex explained that he was no exception to the rest of the construction industry. He said: "I have been collecting benefits for a month or so now, before though I was booked solid for months. I never dreamed I would have gone so long without work. As soon as I finished on the sites I had booked, new work just never came through and I was left in this situation."
His situation is similar to many others, as joiner Daniel Hardman explained when I arrived at his fathers' car dealership to interview about declining car sales. Both father and son have been hit hard by the credit crunch, despite the huge differences in what they both do for a living.
"My Dad said we were lucky Mum didn't own a shop," said Daniel, "then every member of our family would be in deep trouble. As it is, Dad is struggling to sell cars and I can't find work at all."
He added: "In a way its lucky my father owns his own dealership, I can help him sell cars while I'm out of building work. If we can keep the garage going it will be enough for us to survive until construction picks up again."
Even the Tithebarn Regeneration project has struggled in the last five months. Representatives of Blackpool and Blackburn have been desperately trying to delay building plans, complaining of the detrimental affect the regeneration will have on their own towns. The council has also begun to worry that the plans were too optimistic in the first place, believing that the £750 million needed for the project is too much to generate. The plans are now at the mercy of planning inquests and retailers, who may or may not decide to invest the money the council desperately needs. It is very difficult to judge whether or not the plans will go ahead as is, or whether they will be at the mercy of people who do not necessarily have the best interests of Preston at heart. One thing is for certain, the builders and construction companies of Preston will be quietly praying for the go-ahead to be given so some of them can get back to work. That is how desperate the situation is for the construction industry.
Chris Terris Taylor
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