The latest trade survey of small and medium sized firms by the Federation of Master Builders revealed public housing workloads are the worst since it began its survey.

Brian Berry, chief executive of the FMB said: “Around 66% of building companies reported lower workloads, a marked increase from 47% at the end of 2011.

“The private new housing sector fared little better with around 55% of firms indicating that workloads had fallen in the first three months of 2012, compared with 45% in the last three months of 2011.”

He said that the finding were very worrying given the nation’s chronic shortage of affordable housing.

“Although the Government has introduced a number of promising initiatives to try and help the industry, support tends to be awarded to the large volume house builders meaning SMEs still miss out.

Since the late 1980s, the FMB estimates that seven out of 10 firms have disappeared.

He warned that the toll would only rise  if the Government and local authorities continue to drive them out of the market with the additional burdens of red tape and financial contributions that they are expected to pay.”

“What is really worrying is that our survey shows that the SME building sector has now been in recession for four years.

“These dismal results for small builders demonstrate the length and severity of the recession in the construction sector not helped by the fact that 84% of firms expect building materials costs to increase over the next six months.”