A survey of 649 small building firms across the southern half of England (including midlands) found little evidence of an economy on the brink.

Almost 80% reported a ‘healthy pipeline of work’, 60% said they had ‘a manageable amount of work’ in the coming six months, while a further 17% said that they had ‘too much or more than usual’ in their six-month pipeline.

When asked had demand for their work changed  in comparison to other years, 70% said demand had either stayed stable or increased. A quarter of respondents report a marginal decrease in demand, with only 3% saying demand had plummeted.

The survey was conducted by the Independent Builders Merchant Group (IBMG) during December and January).

IBMG chief executive Martin Stables said: “Bombarded with negative stories about the economy one would have expected that home owners to be wary about progressing new projects. However, it appears from this research that the majority of local builders are faring well, with demand remaining stable or increasing.”

Seven out of 10 respondents said they are mostly working on refurbishment, maintenance work or rectifying/making good damage to properties.

A third of respondents specially mentioned garage and loft conversions hinting at a trend to expand living areas rather than move house.

Only 11% said they had been working on energy efficiency projects but 35% reported an increase in enquiries for this type of work, such as loft insulation, window replacement and renewable energy sources.