Falling incomes have hit the construction industry because developers cannot be sure of getting a good return on new homes, the leader of Birmingham’s Conservative councillors has warned.
Mike Whitby urged the Government to consider subsidising the construction sector by sharing some of the risk on new developments.
He highlighted a planned development at the former Rover plant at Longbridge, where up to 700 homes will be built. Developers were concerned about whether they would be able to make a return on their investment, he said.
Speaking at a fringe event at the Conservative conference at the ICC, Coun Whitby said: “We have a major development out in Longbridge where the Chinese now have taken over Rover.
“I spoke to the construction people and before they buy the land, clearly they’ll look at the cost of the land. Then they’ll look at what they will build that property. And then they will look at the disposable income in that area.”