Building News is an information portal for all professional building specifiers. Here you can find all of the latest construction news from around the UK and the rest of the world.

Offshore wind energy could provide a third of all UK electricity by 2030

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Clean, green offshore wind is set to power more than 30% of British electricity by 2030, Energy and Clean Growth Minister Claire Perry has announced with the launch of the new joint government-industry Offshore Wind Sector Deal.

This deal will mean for the first time in UK history there will be more electricity from renewables than fossil fuels, with 70% of British electricity predicted to be from low carbon sources by 2030 and over £40 billion of infrastructure investment in the UK.

This is the tenth Sector Deal from the modern Industrial Strategy signed by Business Secretary Greg Clark. It is backed by UK renewables companies and marks a revolution in the offshore wind industry, which 20 years ago was only in its infancy. It could see the number of jobs triple to 27,000 by 2030.

The deal will also:

  • increase the sector target for the amount of UK content in homegrown offshore wind projects to 60%, making sure that the £557 million pledged by the government in July 2018 for further clean power auctions over the next ten years will directly benefit local communities from Wick to the Isle of Wight
  • spearhead a new £250 million Offshore Wind Growth Partnership to make sure UK companies in areas like the North East, East Anglia, Humber and the Solent and continue to be competitive and are leaders internationally in the next generation of offshore wind innovations in areas such as robotics, advanced manufacturing, new materials, floating wind and larger turbines
  • boost global exports to areas like Europe, Japan, South Korea, Taiwan and the United States fivefold to £2.6 billion per year by 2030 through partnership between the Department of Trade and industry to support smaller supply chain companies to export for the first time
  • reduce the cost of projects in the 2020s and overall system costs, so projects commissioning in 2030 will cost consumers less as we move towards a subsidy free world
  • see Crown Estate & Crown Estate Scotland release new seabed land from 2019 for new offshore wind developments
  • UK government alongside the deal will provide over £4 million pounds for British business to share expertise globally and open new markets for UK industry through a technical assistance programme to help countries like Indonesia, Vietnam, Pakistan and the Philippines skip dirty coal power and develop their own offshore wind projects

Claire Perry, Energy & Clean Growth Minister said “This new Sector Deal will drive a surge in the clean, green offshore wind revolution that is powering homes and businesses across the UK, bringing investment into coastal communities and ensuring we maintain our position as global leaders in this growing sector.

“By 2030 a third of our electricity will come from offshore wind, generating thousands of high-quality jobs across the UK, a strong UK supply chain and a fivefold increase in exports. This is our modern Industrial Strategy in action.”

The Co-Chair of the Offshore Wind Industry Council and Ørsted UK Country Manager for Offshore, Benj Sykes, said “Now that we’ve sealed this transformative deal with our partners in government, as a key part of the UK’s Industrial Strategy, offshore wind is set to take its place at the heart of our low-carbon, affordable and reliable electricity system of the future.

“This relentlessly innovative sector is revitalising parts of the country which have never seen opportunities like this for years, especially coastal communities from Wick in the northern Scotland to the Isle of Wight, and from Barrow-in-Furness to the Humber. Companies are burgeoning in clusters, creating new centres of excellence in this clean growth boom. The Sector Deal will ensure that even more of these companies win work not only on here, but around the world in a global offshore wind market set to be worth £30 billion a year by 2030.”

Keith Anderson, ScottishPower Chief Executive, concluded “ScottishPower is proof that offshore wind works, we’ve worked tirelessly to bring down costs and, having transitioned to 100% renewable energy, will be building more windfarms to help the UK shift to a clearer electric economy. Two of our offshore windfarms in the East Anglia will replace all of the old thermal generation we’ve sold and we are ready to invest more by actively pursuing future offshore projects both north and south of the border.

“We have a fantastic supply chain already in place in the UK, from businesses in and around East Anglia to across England, across Scotland as well as Northern Ireland. The Sector Deal will attract even more businesses in the UK to join the offshore wind supply chain and we are excited to see the transformative impact this will have on our projects.”

In addition, the deal will:

  • challenge the sector to more than double the number of women entering the industry to at least 33% by 2030, with the ambition of reaching 40% – up from 16% today
  • create an Offshore Energy Passport, recognised outside of the UK, will be developed for offshore wind workers to transfer their skills and expertise to other offshore renewable and oil and gas industries – allowing employees to work seamlessly across different offshore sectors
  • see further work with further education institutions to develop a sector-wide curriculum to deliver a skilled and diverse workforce across the country and facilitate skills transfer within the industry
  • prompt new targets for increasing the number of apprentices in the sector later this year

The cost of new offshore wind contracts has already outstripped projections and fallen by over 50% over the last two years, and today’s further investment will boost this trajectory, with offshore wind projects expected to be cheaper to build than fossil fuel plants by 2020. The Deal will see UK continuing as the largest European market for offshore wind, with 30GW of clean wind power being built by 2030 – the UK making up a fifth of global wind capacity.

The UK is already home to the world’s largest offshore wind farm, Walney Extension off the Cumbrian Coast, and construction is well underway on projects nearly double the size. Around 7,200 jobs have been created in this growing industry over the last 20 years, with a welcome surge in opportunities in everything from sea bedrock testing to expert blade production.

The Deal will look to seize on the opportunities presented by the UK’s 7,000 miles of coastline, as the industry continues to be a coastal catalyst for many of the UK’s former fishing villages and ports. Increased exports and strengthened supply chain networks will secure economic security for towns and cities across the UK.

 

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It’s time to revive and re-imagine the British high street

The high street is dying but not yet dead and can still be revived and reimagined, says the Federation of Master Builder (FMB) in response to a new report by a Committee of MPs.

In the report ‘High streets and town centres 2030’, the Select Committee for Housing, Communities and Local Government said “The six months over which our inquiry took place appeared to be the most turbulent for the high street so far. Barely a week went by without headlines pronouncing the ‘death of the high street’ or a major retailer announcing a restructuring or a fall in profits.

“An enormous change has taken place in retail in recent years. The traditional pattern of making purchases in physical stores, both in and out-of-town, has been profoundly disrupted by the growth of online shopping. The impact of this on our high streets and town centres in the form of store closures, persistently empty shops and declining footfall is clear for all to see.

“Against this concerning backdrop, we make a set of recommendations to Government, local government, local communities, retailers and landlords to be acted on now. Unless this urgent action is taken, we fear that further deterioration, loss of visitors and dereliction may lead to some high streets and town centres disappearing altogether.”

Responding to this, Brian Berry, Chief Executive of the FMB, said “I’m really encouraged with the visionary approach this report has taken, as it looks at how we need to fundamentally reimagine the ways that we regenerate our high streets in order to adapt to the challenges of modern life. Central to breathing new life into our high street is converting empty or underused spaces above shops into new homes. These kind of homes would be ideal for young families and professionals, and would benefit the high street through increased footfall to the ‘activity-based community gathering places’ which the report wants us to aspire to. The 2017 FMB report ‘Homes on our high streets’ sets out a number of creative ways that we can overcome the challenges laid out by the Select Committee, and which are associated with regeneration projects, including disparate ownership and preserving local characteristics. In this regard, I was particularly pleased with the Committee’s conclusion that the Government must review the planning powers currently available to local authorities, with a view to strengthening them and empowering local authorities to deliver on town centre transformation and, at the same time, the Government’s ambitious housing targets.”

“With a survey of cross-party MPs showing that 90 per cent of respondents recognise the potential of our existing buildings to help solve the housing crisis, I would urge the Government to accept the recommendation to conduct a review of our high streets as quickly as possible. In particular, the Government must deliver on its commitment to review the Compulsory Purchase Order process, which could help speed up regeneration of high streets. However, contrary to the Committee’s conclusion that Permitted Development Rights risk undermining a local authority’s ability to plan for their housing delivery, streamlining the process for upwards development above certain premises would help them meet their targets while maintaining a more rigorous application process for other kinds of developments. What we must avoid is perfectly good space lying empty and achieving nothing in terms of boosting the local economy or providing homes for individuals and families.”

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Theresa May’s offer to delay Brexit spells further uncertainty for construction

The prime minister has pledged that MPs will have three chances to vote on the next stages of the process to leave the EU.

Theresa May promised the House of Commons to hold a meaningful vote on the withdrawal agreement on 12 March. If the deal fails, the Government will ask MPs on 13 March whether they support a ‘no-deal Brexit’. If the House of Commons rejects no-deal, MPs will have the opportunity to vote on 14 March on postponing Brexit until at least 30 June.

The National Federation of Builders (NFB) continues to think that the construction industry needs an orderly withdrawal from the EU, ending uncertainty for businesses. Although the prime minister’s announcement could postpone the imminent prospect of leaving without a deal, it does nothing to dispel uncertainty among construction businesses about the future.

Richard Beresford, chief executive of the NFB, said “While the prime minister appears to be lining up the votes to make no-deal more unlikely, those pushing for a harder Brexit may just decide to cast their unchanged votes at a later date.

“Far from delivering certainty to thousands of construction companies, the prime minister’s announcement may end up delaying a no-deal Brexit by three months.”

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Construction productivity boost could provide £100bn to UK every year

The scale of construction’s productivity gap has been laid bare in the a research report from Mace, which shows that the UK is missing out on more than £100bn of annual economic activity.

Mace’s research report, ‘The Size of the Prize’,  compares the construction sector and the manufacturing sector in the UK.

Manufacturing has seen steady productivity growth over the last twenty years, allowing the sector to deliver more economic growth with the same or fewer number of workers.

Conversely, the UK construction sector has seen productivity flat line for the past twenty years, limiting growth and denying the UK more than £100bn a year of economic benefit.

Mace’s figures show that – had construction kept pace with the productivity gains in manufacturing – the UK would see:

  • An approximate 3% increase in the UK’s overall Gross Domestic Product (GDP).
  • Each construction worker producing £38 an hour of economic activity, compared to £25.50.
  • The capacity to deliver the £600bn national infrastructure pipeline in four years, rather than six.

The tax generated by an additional £100bn of annual economic activity would produce an extra £40bn a year for the Government, enough to eliminate next year’s budget deficit, based on the Spring Budget forecast from 2017.

Mark Reynolds, Mace’s Chief Executive, said “The collapse of Carillion made clear the stark challenges facing the construction sector. Improved productivity is the key to more sustainable growth and stability across the industry. Unless we take swift action, slim margins and below average productivity will prevent the UK’s construction sector reaching its potential.

“It’s clear the UK is missing out on a huge amount of potential growth and infrastructure delivery every year – as well as the increased funding for public services that would generate.

“Now that we have seen the scale of the missed opportunity, it’s more important than ever that we work together to improve productivity across the sector. This means making the best use of the research and development funding available from government, as well as investing effectively to ensure we have the required skills across our workforce.”

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Hadley Group acquires Hadley Steel Framing Ltd

Ben Towe, Group Managing Director at Hadley Group

Global cold rolled manufacturer of steel solutions with real world applications, Hadley Group is pleased to announce the acquisition of Hadley Steel Framing Ltd (HSF). HSF will continue to operate as a stand-alone business but will have the resources of the wider Hadley Group available for support.

Hadley Group originally acquired a 50% stake in Hadley Steel Framing Ltd (HSF) ten years ago, supporting the growth of the company by manufacturing and delivering its cold rolled steel framing products. This latest development in HSF’s ownership means it will be business as usual with no changes to the manufacturing or delivery aspects of the business. Hadley Group will provide HSF with the stability and security that comes with being part of a large international group.

Hadley Group operates across the globe, providing a significant breadth of product solutions across a diverse market. The company’s expertise, market insight and manufacturing capabilities have positioned it as a world leader in advanced cold rolled steel technology.

HSF is a future market leader in steel framing design, assembly and installation with core strengths in its bolted system certified to 12 storeys. The company’s expert technical, structural and design ability ensures it can provide a single solution from concept to completion on building projects in all sectors, both on site and off site.

Ben Towe, Group Managing Director at Hadley Group, said: “We view the acquisition of HSF as highly complementary to our other current construction product offerings and intend to support them as they continue their progression in the markets they serve. Architects, specifiers and contractors trust HSF to deliver industry standard and bespoke construction solutions on a world stage and we are delighted to confirm the addition of HSF into the Hadley Group.”

The acquisition complements both company’s growing reach with the announcement coming soon after Hadley Group’s acquisition of EWS (Manufacturing) Ltd.

Hadley Steel Framing has recently launched a new website which showcases all of their products and expertise. For more information on HSF, please visit: www.hadleysteelframing.com

For more information about Hadley Group, please visit: www.hadleygroup.com
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£9m to help build 200,000 homes in new garden towns

A £9 million cash injection to speed up the locally-led building of new garden towns and villages across the country has been announced.

The Garden Communities project is expected to deliver 200,000 properties on large sites by 2050, and the latest funding will help get 21 sites ready for development.

The government project is helping ambitious councils get well-designed homes built on large sites, and the money will help pay for master-planning and technical studies.

Work is already underway on 10,000 properties across the country in garden towns and villages, with 36,000 expected to be underway or completed by 2022.

Housing Minister Kit Malthouse MP said “We have not built enough homes in this country for the last three decades, and we are turning that around as we work towards our target to build 300,000 properties a year by the mid-2020s.

“This £9 million funding boost is giving councils the support and cash injection they need so they can finish planning new developments and get diggers on site.”

The developments being funded include a 2,000 home site for custom and self-builders in Bicester, on land purchased by the council from the Ministry of Defence.

It also includes developments in Basingstoke, Didcot, Taunton, Harlow-Gilston and across Northamptonshire where work is already underway on the first phase of developments.

The funding will be administered by Homes England.

Place | Capacity award | Homes
Aylesbury | £420,000 | 15,000
Basingstoke | £695,000 | 10,000
Bicester | £770,000 | 13,000
Harlow & Gilston | £715,000 | 24,000
North Essex (Colchester, Tendring & Braintree) | £1,000,000 | 43,000
North Northants (Corby, Kettering & Wellingborough) | £725,000 | 33,000
Otterpool Park, Folkestone | £1,250,000 | 10,000
Taunton | £550,000 | 15,000
Bailrigg | £100,000 | 3,500
Culm, Mid Devon | £300,000 | 5,000
Dunton Hills | £100,000 | 3,500
Halsnead | £300,000 | 1,589
Handforth | £150,000 | 1,650
Infinity, Derbyshire | £150,000 | 3,200
Longmarston | £300,000 | 3,500
Longcross | £125,000 | 1,700
West Oxfordshire | £150,000 | 2,200
Tresham | £300,000 | 1,500
Welbourne | £300,000 | 6,000
West Carclaze | £300,000 | 1,500
St Cuthbert’s, Carlisle | £300,000 | 10,000

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Councils warn of ‘severe’ need for affordable homes

A report published today by APSE (Association for Public Service Excellence) and written and researched by the TCPA finds that 98% of UK councils surveyed describe their need for affordable homes as either ‘severe’ or ‘moderate’.

UK councils are becoming increasingly unable to meet demands for affordable housing and 98% now describe their need as either ‘severe’ or ‘moderate’, with only 1% claiming that their need is not substantial.

The survey of 166 local authorities in Britain highlights the pressure on councils to meet the growing demand for affordable housing due to a lack of new homes being built and that many of those that are being built are not affordable to those in need.

The research highlights the cumulative impact of existing housing and planning policies in England—such as the 1 per cent annual rent reductions in the social rented sector and the continued deregulation and reform of the planning system—have reduced the ability of councils to secure genuinely affordable homes available for social rent.

Kate Henderson, Chief Executive of the TCPA, said “Our research reveals that Britain is facing an acute housing crisis with councils across the country increasingly unable to meet the need for affordable housing.

“The government must make tackling the housing crisis a priority. An ambition to increase housing numbers is not enough, we need to ensure that the homes that are built are affordable and well designed.”

By exploring a range of issues faced by councils, this study has identified how local authorities are already taking a more active role in housing delivery through entrepreneurial approaches, such as setting up local housing companies and innovative approaches to partnership working. Over two thirds (69%) of councils surveyed said that they already had or were thinking about setting up a local authority housing company either on their own or in partnership.

Paul O’Brien, Chief Executive of APSE concluded “A new wave of council homes would help support local economic growth, jobs and skills in our economy; housing could be an effective driver for a renewed industrial strategy but to achieve this we need to place local councils at the heart of delivery on housing need. That means the Government must provide the financial freedoms and flexibility for councils to deliver solutions to our chronic housing shortage.”

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Government backs plans to create new homes and jobs over next five years

Plans for public-sector land to be developed, which aim to bring forward 10,000 new homes, 14,000 new jobs and save taxpayers £37million in running costs.

Development plans which could see more than 10,000 new homes built across England and 14,000 new jobs created by 2024/25 are to be brought forward through a £15million government project.

The One Public Estate programme was launched in 2013 to make better use of public-sector sites, free up space for new homes and create jobs.

It encourages the emergency services, local councils and government departments to work more closely together by sharing sites and creating public-sector ‘hubs’ – where services are delivered in one place. So far, the programme has saved taxpayers £24million in running costs, created 5,745 new jobs and released land for the development of 3,336 new homes.

The latest round of the programme will see money and support given to more than 100 local public-sector partnerships across England, to bring forward proposals for a range of new projects on public-sector sites.

These include:

  • £680,000 for projects in Waltham Forest, including proposals to bring forward the redevelopment of the 100-year-old Whipps Cross Hospital and sites in public and private ownership for housing development in the Forest Road Corridor
  • £505,000 for projects in Devon and Torbay, including the regeneration of land around St David’s station in Exeter
  • £405,000 for projects in Northamptonshire, including plans to release land around Kettering railway station for the development of new houses and station improvements
  • £410,000 for projects in Worcestershire, including delivering new housing and regeneration around Redditch station, as part of the Rail Quarter development

The Minister for Implementation, Oliver Dowden, said “Getting the best use out of publicly-owned land can help to regenerate our towns and cities and give people improved access to the services they need.

“This programme shows that when government works smarter, with public authorities coming together, taxpayers get better value for money, new jobs are created and space is freed-up for vitally needed new homes.”

The One Public Estate programme is a joint initiative between the Cabinet Office, the Ministry of Housing, Communities & Local Government and the Local Government Association. It now covers 95% of all local authority areas in England.

Funding for the latest round of the programme will help with the creation of feasibility studies and masterplans for the potential development sites.

It is hoped the work will bring forward savings of £37million in public-sector running costs and allow the redevelopment of a large number of brownfield sites.

The Minister of State for Housing, Kit Malthouse, added “This government is committed to helping more people get on the housing ladder and restoring the dream of home ownership for a new generation. The One Public Estates programme will not only help more people find a home of their own, but also help create jobs and save taxpayers’ money.

“The latest projects to share £15million of funding will make a real difference to local communities and provide better services to residents.”

Lord Porter, Chairman of the Local Government Association, concluded “I’m pleased to see One Public Estate continue to grow from strength to strength. This latest round will see the programme now deliver more than 650 projects in total, all of which support councils to work with the wider public sector to deliver the best public services and place for their local communities.

“The delivery of new homes remains a national priority and with 95% of councils now part of the programme. It’s clear to see that local government remains committed to building the right homes for the places they serve.”

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A slow start to the year?

The RICS UK Residential Market Survey for January highlights that 2019 is off to a slow start, showing a subdued backdrop as enquiries, sales and new instructions all fall further.

In the near term, contributors sense little prospect of a turnaround, as concerns over the potential impact of Brexit, alongside affordability constraints continue to cause buyers and sellers to hesitate. However, expectations at the 12-month horizon are modestly positive.

During January, new buyer enquiries fell again at the headline level marking the sixth successive monthly decline. What’s more, demand declined to some degree across virtually all parts of the UK. Scotland was a slight exception, but even there the trend was only flat.

Alongside weakening demand, the number of new properties being listed on the sales market also deteriorated, with the net balance reading of -25% the weakest since July 2016.

Rounding off a subdued month for market activity, agreed sales also fell further, with the pace of decline seemingly gathering momentum compared to December.

Resolution of the Brexit negotiations is widely seen as critical to encouraging potential buyers back into the market, although whether that will be sufficient in London and parts of the South East where affordability remains stretched and the tax changes are most penal remains to be seen.

A brighter outlook for the next 12 months?

Sales expectations for the coming three months remain downbeat, both at the national level and across most parts of the UK with expectations negative in 11 of the 12 regions/countries covered. The outlook over the next 12 months is stronger, however, as a headline net balance of +16% of contributors are expecting sales to rise.

Prices also continued to slip, as the headline price indicator declined for the fourth month in succession, with the net balance easing to -22%. When broken down, London and the South East continue to display the weakest readings, followed by East Anglia and the South West. In these regions the strong price growth over the past six years has left affordability looking stretched, with the high prices a key factor hampering demand. Elsewhere, prices continue to rise in Northern Ireland and Scotland.

Mixed news in the lettings market

Across the lettings market, tenant demand rose modestly in the three months to January (seasonally adjusted series). It has now picked up in each of the last three quarters. Nevertheless, nationally new landlord instructions continue to dwindle, remaining in negative territory for an eleventh successive quarter. Respondents expect rents to rise by roughly 2% over the next 12 months, and at the five-year horizon, averaging 3% each year.

Simon Rubinsohn, RICS chief economist, said “Although some contributors to the survey have taken comfort from a better start to the year than anticipated, a larger proportion are continuing to find the market a difficult one in which to do business.

“Resolution of the Brexit negotiations is widely seen as critical to encouraging potential buyers back into the market, although whether that will be sufficient in London and parts of the South East where affordability remains stretched and the tax changes are most penal remains to be seen.

“Meanwhile, the lettings market is continuing to see instructions fall away as investors respond to the emerging fiscal and regulatory landscape. This is resulting in feedback consistent with further increases in rents across the country, to a greater or lesser degree, over the next 12 months.”

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English councils to receive over £50 million for Brexit preparations

Local authorities across England will receive a share of £56.5 million to help support their preparations for Brexit.

The Treasury announced in December that MHCLG would receive £35 million to prepare for Brexit. MHCLG has now added an extra £21.5 million funding using finance from its 2018 to 2019 budget.

Councils will receive £20 million this financial year (2018 to 2019) and £20 million in 2019 to 2020 to spend on planning and strengthening their resources.

A further £10 million will be available in the next financial year (2019 to 2020). This funding is intended to help local authorities with specific costs which may arise following Brexit.

£1.5 million will be allocated in 2018 to 2019 only to local authorities facing immediate impacts from local ports, with the decision on the allocation and distribution of that funding to be announced shortly.

A further £5 million will be split by teams in the Ministry of Housing, Communities and Local Government, local authorities, and Local Resilience Forums for specific purposes such as strengthening preparations and supporting communities.

The funding will help councils to adapt to the changes caused by Brexit, ensuring their local authority is prepared ahead of 29 March, whilst also protecting vital local services.

Councils will decide how to allocate their funding. It is expected that money will be spent on resources like recruiting extra staff to ensure councils have the capacity to provide timely and accurate information to residents who have questions on how Brexit will affect them.

Communities Secretary Rt Hon James Brokenshire MP, said “Local authorities have a critical role to play in making a success of Brexit in their areas.

“I’m determined to ensure councils have the resources they need, which is why I’m releasing £56.5 million of extra finance to help them to deliver essential services and keep residents well-informed.

“I will continue to work closely with local leaders to ensure they are prepared to respond to any Brexit scenario.

“This funding will not be the only resource councils receive from central government to fund Brexit costs. The government has been clear that departments will assess and, if appropriate, fund any potential new requirements of councils as part of EU Exit work they are undertaking.”

The Secretary of State will also continue to engage with the sector through the EU Exit Local Government Delivery Board and regular communications with stakeholders across the sector.

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