Markets doom and gloom

Figures from the NHBC, released to Building magazine, revealed that there were 39% fewer housing starts in the first month of this year compared to last year: 9,135 compared to 14,998 in 2007. At the same time, the average number of houses sold each day fell 36% to 550 compared to January last year.

This continues a trend demonstrated by government statistics which recorded that there were 10% fewer housing starts in the last quarter of 2007. Alan Cherry, chairman of Countryside Properties, prediced that starts for the year could be as low as 120,000, although experts advise that the picture will be clearer by Easter.

The tougher conditions are beginning to tell among the specialists. Following on from news earlier in the month that Wembley roofing contractor Weatherwise had gone into administration, partly due to outstanding claims on the stadium job, came the demise of Bristol concrete frame firm Febrey. The £9m turnover firm announced that its business was in the hands of administrators from Grant THornoton although the cause of its demise was not known.

Meanwhile, another big name from the specialist sector disappeared. Hills Electrical & Mechanical was sold to Southern Electric COntracting for £1, although its problems were due to difficulties on Building Schools for the Future projects, rather than the current economic climate.

Hills, which employs 200 people and turned over £69m in 2006, has worked on some prestigious projects including the Swiss Re tower, T5 and Manchester's Civil Justice Centre.