British housebuilders are setting ambitious growth plans as they remain optimistic about the future, despite uncertainty caused by Brexit.
Confidence in the industry's future remained relatively steady, dropping slightly to 6.9 from 7.2, with 10 representing the highest level of expectation, according to an annual report from Lloyds Bank.
Despite grappling with a skills shortage and the rising cost of raw materials, the optimistic spirit had firms expecting a 29 per cent rise in business turnover over the next five years, up from 28 per cent last year.
Housebuilders plan to invest 31 per cent of their current annual turnover back into their business over the next five years, which Lloyds said was still historically high but down slightly from 35 per cent the previous year.
A portion of that investment will go towards new building techniques like modular housing and panelised systems which are more efficient, easier to build, have better construction standards and in some areas have increased margins.
“It is reassuring to see the sector confronting these challenges head on by investing and planning for business growth, prioritising staff training and looking at more innovative new building techniques," said David Cleary, regional director and national head of housebuilding at Lloyds Bank Commercial Banking.
"This has the potential to boost productivity and, more importantly, increase the pipeline of new homes that the nation badly needs."
Stewart Baseley, the executive chairman of the Home Builders Federation said:
Whilst output is up an unprecedented 74 per cent in the past four years, the industry faces some huge challenges as it strives to meet the housing needs of the country.
Housebuilders are investing significantly to address these challenges and ensure the industry has the capacity and skills to deliver even more, high quality homes.