A lack of finance is threatening the recovery of the construction industry, a new study has shown.
According to a survey carried out by PricewaterhouseCoopers although 95pc of companies are confident about the next three years, almost two thirds said that securing funding was the biggest challenge they face when looking to expand their business.
PwC tax partner Ronan MacNioclais said: “The survey highlights that access to finance, onerous planning and building regulations and uneconomic development prospects may contribute to the low level of planning applications compared to the demand.”
He said that this had manifested itself in the drop in planning permission granted so far this year.
“There are concerns that the permission granted thus far in 2015 are below those in the third quarter of 2014 and that this will have a knock-on effect on an already constrained market,” he added.
Despite this optimism is still high in the sector, with 87pc of those surveyed expecting turnover to increase in the coming months while more than two thirds expect to hire more staff.