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.

Nearly 80% of builders and consumers support licensing construction

Almost 80% of builders and home owners are calling on the Government to introduce a licensing scheme for the UK construction industry to stamp out rogue traders once and for all, according to the Federation of Master Builders (FMB).

The FMB has published an independent research report by Pye Tait entitled ‘Licence to build: A pathway to licensing UK construction’, which details the benefits of introducing a licensing scheme for the whole construction industry and puts forward a proposal for how it could work.

Also, new consumer research undertaken by the FMB reveals the impact poor quality building firms are having on consumers and demonstrates that most home owners support the introduction of a mandatory licensing scheme. Key results from both pieces of research include:

  • 77% of small and medium-sized construction firms support the introduction of licensing to professionalise the industry, protect consumers and side line the cowboys
  • 78% of consumers also want to see a licensing scheme for construction introduced
  • Nearly 90% of home owners believe that the Government should criminalise rogue and incompetent builders
  • Over half of people (55%) who commission home improvement work have had a negative experience with their builder

Commenting on the research report, which was launched at a high profile event in the House of Lords on the afternoon of Monday 2nd July, Brian Berry, Chief Executive of the FMB, said “The vast majority of builders and home owners want to see the construction industry professionalised and it is time for the Government to act. It’s unacceptable that more than half of consumers have had a negative experience with their builder. However, we shouldn’t be surprised by this given that in the UK, it is perfectly legal for anyone to set up a building firm and start selling their services without any prior experience or qualifications. This cannot be right given the nature of the work and the potential health and safety risks when something goes wrong. In countries like Australia and Germany, building firms require a licence and we want to see the UK Government regulate our industry in a similar manner.”

“Aside from the obvious health and safety benefits, the advantages of a licensing scheme are manifold. Licensing would bar from the industry the very worst firms operating in the construction sector. Consumer protection would increase and with it, the appetite among home owners to undertake more construction work. We also believe that if we can improve the image of the industry through licensing, young people, parents and teachers will have a more favourable impression of our sector and therefore be more likely to pursue, or recommend, a career in construction. Over time, this would gradually help ease the construction skills shortage we currently face. For too long, the very worst construction firms, most of which undertake private domestic work, have been giving the whole sector a bad name. So that’s why this scheme should be of interest to the whole sector and not just small local builders.”

“In terms of how the scheme might work, it needn’t be too costly or bureaucratic. Our report draws on the experience of experts from across the construction industry and puts forward a clear proposal. We are suggesting that the scheme covers all paid-for construction work by firms of all sizes, not just those working in the domestic sector. Fees should be tiered and could start at as little as £150 every three to five years, with the largest contractors paying around £1,000 over the same period. In terms of how it’s governed, the licence should be administered by a single authority with a broad range of scheme providers sitting underneath. We are now keen to reach out to the whole construction sector to get their input on the proposal. If we can demonstrate broad support for this approach, we are optimistic that the Government will take it forward.”

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Gender pay gap in construction falls to 12%

  • Gender pay gap in the construction industry has fallen from 16% to 12% in the past decade – a 4% decrease
  • National fall in gender pay gap over same period is 4%, from 21% to 17%
  • Gender pay gap across all industries dominated by small businesses has fallen from 22% to 13% in past ten years

The gender pay gap in the construction sector has fallen by 4% in the last decade, according to a report published by Informi, the website offering free practical advice and support for small businesses.

The report shows that women who earned 84p for every £1 a man earned in construction back in 2008 now earn 88p, meaning that the remaining gender pay gap in the industry stands at 12%.

Since 2008, female hourly pay in construction has increased by 22%, while male hourly pay over the same period has increased by 17% – meaning that the overall gender pay gap has narrowed by 23%.

Across all small business-dominated industries, which includes construction, the gender pay gap is falling at twice the rate as that of all companies across the UK.

The research found that while the national gender pay gap was at 21% ten years ago (and at 22% in SME-dominated industries), current wage inequalities in those sectors with a greater number of SME employees has fallen to 13%, compared to a national average of 17%.

With a 9% overall fall in the gender pay gap across these SME-dominated industries over the last ten years, the sectors are set to eradicate the remaining 13% average wage inequalities by 2034, should it continue to fall at current rates.

Darren Nicholls, product manager for Informi, said “Small businesses are the lifeblood of the UK economy, and this report demonstrates that they are blazing a pathway towards wage equality and helping to eradicate the gender pay gap.

“Small businesses are not shackled by tradition, legacy or bureaucracy in the same manner as many large companies can be. That said, clearly a double digit gap is still far too high. There’s a great deal more to be done, with some industries lagging behind others in implementing the necessary changes to ensure that females get just as many opportunities to thrive in their profession of choice.

“The fact that mandatory reporting has been brought in by the Government for larger companies should act as an encouragement for small businesses to consider female progression within their own firms, auditing their own internal data and acting upon their results.”

Chloe Chambraud, gender equality director for Business in the Community, added “Closing the gender pay gap is not just about equal pay, but about a much bigger organisational culture shift.

Employers should understand any factors driving their pay gap, and address the root causes of inequality. This means reducing bias and increasing transparency in the recruitment, appraisal and promotion processes, normalise agile working, and offer financially viable parental leave packages for all.”

Sophia Morrell, chair of Labour in the City, concluded “It is really encouraging to see SMEs leading the charge in the UK on closing the gender pay gap. Legislation can be helpful in pushing us towards equality, but the most forward-thinking companies have already been embedding these principles into their workplaces rather than waiting for regulation to force their hand.”

The full report, ‘Closing the Gender Pay Gap: Are small businesses bucking the national trend?’ is available from the Informi website.
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98% of councils say new development does not meet affordable housing policy

98% of councils in England say that new development in their area does not meet policy requirements for affordable housing, according to a report by the Town and Country Planning Association (TCPA).

The research, which was taken from a survey of almost 90 councils, highlights the lack of resources available to local authorities trying to meet demand for affordable homes, with 70% of respondents saying that they are forced to rely ‘substantially’ on developer contributions to secure even this amount.

Councils and charities have long called for government to lift the HRA borrowing cap, which would give local authorities greater freedom to meet housing demand in their areas. The chancellor, Phillip Hammond, last year announced an additional £2bn of funding to help councils fund their own affordable housing projects and a lifting of the HRA borrowing cap, but this has been criticised for being available only in ‘high-value’ areas and for being inaccessible for at least another year.

Councils have also raised concerns that the government wants to remove the term ‘social rented housing’ from its official definition of affordable housing. Put forward as part of a series of changes to the National Planning Policy Framework (NPPF), the proposals seemingly backtrack on an earlier commitment in the housing white paper which said that social rented housing – which is the most in-demand housing tenure2 and often the only option available to low earners – would indeed be listed within the official definition.

When asked whether the government’s revised definition of affordable housing would help councils meet local requirements for affordable housing 18% said it would.

The draft Planning Practice Guidance (PPG) – which was consulted on alongside the draft revised NPPF – also contains potentially radical changes to the viability test, which currently has a significant impact on reducing the ability of councils to secure affordable housing. The PPG includes a statement that the ‘price paid for land is not a relevant justification for failing to accord with relevant policies in the plan’. The draft PPG also makes clear that ‘existing use value is not the price paid and should disregard hope value’.

The response to the survey from councils on this provide a mixed set of views about the potential impact of these changes. There is support for a greater move towards transparency and accountability, but many of the concerns expressed relate to the continued emphasis in favour of developers over meeting key public interest outcomes such as affordable housing.

Henry Smith, Projects and Policy Manager at the TCPA, said “The current model of delivering affordable housing isn’t ever going to work. Low-paid workers are being pushed further and further out of their towns and cities, enduring longer and costlier commutes and enjoying less time at home. Where will they go? There will be a time when people just stop travelling such long distances to get to work and whole sectors become critically understaffed.

“The government must lift the HRA borrowing cap not only in high-value areas but everywhere. The only way we can ease the demand for all housing types is if councils are given the responsibility to manage their own stock and finally provide some competition for the private sector.”

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One in seven young Brits would buy a house with a stranger to get on property ladder

More than one in seven young Britons (14 per cent) would be willing to buy a house with a total stranger – in a desperate bid to get on the property ladder, according to nationwide research.

A new study of 2,000 Brits (aged 18 – 40) by HSBC, has revealed the true extent to which buying a property now feels completely out of reach for the younger generation, with a staggering 83 percent claiming they will probably NEVER be able to afford to buy their own property.

According to the report, 80 per cent would co-own and share a property with someone who is not their partner, with a further 59 per cent saying they’re “open to the idea” of buying with a stranger – if they ticked all the boxes.

As a result of the findings, HSBC is running a unique speed-dating style event on February 15th –National Singles Awareness Day – to bring together people interested in meeting someone they could potentially co-buy with.

A desperate 4 per cent said they would be prepared to move in with “a mate from the pub”, while just under one in twenty are so desperate to get on the property ladder, they would EVEN be prepared to buy with an ex.

And the study revealed modern Brits have a clear idea of the top traits the PERFECT housemate or ‘homebae’ should have, with odour free and clean and tidy in the top five.

The list of attributes also includes being able to cook a cracking roast, earning over 50k a year, having a penchant for a good BBC drama, having a good credit rating – and (in an ideal world) NOT being a vegetarian or vegan.

Being calm under pressure was a top trait for 42 per cent of people and 35 per cent would rather share a home with someone who DOES NOT play music too loudly – and 28 percent said they would like someone who is a good listener.

While clean, serene and someone who is a financial dream were topping the list of priorities for co-ownership, people said their pet peeves include extreme mess (67 per cent), irritating behaviour (61 per cent), someone bringing undesirable people home (42 per cent) and people not paying their share of household bills (30 per cent).

27 percent said their annual salary would not get them a big enough mortgage to but a property where they would like to live, while 25 percent said it would be nice to split the bills with someone else.

Overwhelmingly 75 percent of young Brits said that if they get the chance they will buy a house purely to live in, rather than as a buy to let, while 9 percent said they will rent out a room to help with the mortgage.

“We understand the challenges that young buyers are facing today and that they are willing to think outside the box to get on the property ladder – even contemplating the idea of buying with a stranger,” comments HSBC mortgages expert Chris Pearson. “That’s why we’ve run this research on the perfect homebuying partner and are holding Home Bae, the UK’s first-ever speed dating event for co-buyers.”

“Buying a home is a life-changing financial commitment and there’s no doubt this is an unorthodox way of doing it. People who are considering this step need to not only find someone responsible and compatible – they also need to dot every “I” and cross every “T” to avoid a difficult situation in the future, especially when it comes to selling. It’s important to have a clear agreement in place from day one so you both know what’s expected of you.”

Focusing on the check list of what’s really important to you is essential, according to relationship coach Sam Owen, who says “The quality of our relationships is more important than how many friends we have or whether we have a romantic partner.

“Even one good person in your life, like a ‘house-partner’ you buy a home with, could be a lifeline, especially in a world with increasing physical and sometimes even psychological distance between us. It’s a partnership so you’ll want to make sure there aren’t any deal-breakers and they really tick your boxes.”

The study is part of HSBC’s annual Beyond the Bricks report which looks at home-buying habits and attitudes across the world.

According to Brits, the perfect housemate:

  1. Pays the bills on time – 80 percent
  2. Is clean and tidy – 70 percent
  3. Keeps the bathroom clean – 56 percent
  4. Does NOT have body odour – 51 percent
  5. Is open to compromise – 48 percent
  6. Is calm under pressure – 42 percent
  7. Can do DIY – 39 percent
  8. Has savings in the bank – 38 percent
  9. Loves pets – 37 percent
  10. Is fun loving – 36 percent
  11. Does not play loud music – 35 percent
  12. Has a good credit rating – 31 percent
  13. Is a good listener – 28 percent
  14. Keeps the fridge well stocked – 26 percent
  15. Is a meat-eater – 24 percent
  16. Does NOT talk too much about themselves – 23 percent
  17. Lets you borrow their things – 23 percent
  18. Will deal with all the household admin – 22 percent
  19. Lends you books and movies – 20 percent
  20. Loves a good BBC drama – 19 percent
  21. Has monthly savings targets – 19 percent
  22. Earns over 50k a year – 18 percent
  23. Cooks a cracking roast – 18 percent
  24. Does a “chemist run” when you’re ill – 17 percent
  25. Likes to be in bed by 11pm – 17 percent
  26. Has a Netflix account – 16 percent
  27. Has a family holiday home somewhere warm and sunny – 16 percent
  28. Does not snore – 16 percent
  29. Owns a car – 15 percent
  30. Is stylish – 13 percent
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MPs back Heathrow Airport £14bn third runway plan

  • 415 MPs across political parties united to unequivocally back expanding Heathrow – ending decades of political debate
  • Approval unlocks billions in growth, secures tens of thousands of new skilled jobs and will ensure Heathrow expands sustainably
  • Heathrow will now prepare an application for development consent which will see construction begin in 2021
  • Within the next 12 months alone, Heathrow will sign £150m in contracts with British businesses, creating 900 new jobs and 200 new apprenticeships

In a landmark vote this week, Parliament unambiguously backed expanding Heathrow – ending decades of political debate on one of the UK’s most pressing infrastructure issues. MPs from across political parties joined forces to support the Government’s Airports National Policy Statement. The vote clears the way for Heathrow to submit an application for development consent for the project – unlocking billions of pounds in growth and creating tens of thousands of new skilled jobs across the UK in the early years of Brexit.

Britain won’t have to wait long for the benefits of an expanded Heathrow. Over the next 12 months alone, the airport will sign £150 million worth of contracts with British businesses, creating 900 new jobs and 200 new apprenticeships. Heathrow will also announce the locations of the off-site logistics hubs that will allow businesses across the country to get involved with what will be one of Europe’s largest infrastructure projects.

Parliament’s historic vote is the culmination of a rigorous, evidence-based selection process – including review by the independent Airports Commission and the Government – which determined not only that expanding Heathrow offers the greatest benefit to all of the UK, but that it can be done sustainably. Over the past six years, Heathrow has worked with local communities to design an expansion plan that treats local people fairly. In addition to the thousands of new jobs the project will create for local residents, Heathrow has also made binding commitments to deliver a £2.6bn compensation package to local residents, implement a 6.5 hour ban on scheduled night flights and a triple lock guarantee to meet air quality obligations. Heathrow will also release detailed plans over the coming months to deliver a skills strategy so local residents can benefit from up to 40,000 new skilled airport jobs that an expanded Heathrow requires – an opportunity that has the potential to end youth unemployment in local boroughs.

Today’s vote secures a £14bn private investment for the UK – one of the largest private projects in Europe. It will transform the country’s only hub airport, stimulating growth and opportunities for communities the length and breadth of the UK. With up to 40 new long-haul trading links, double the cargo capacity, more competition and choice for passengers and new domestic flights – an expanded Heathrow will make Britain the best connected country in the world and sends the strongest signal to date that Britain is open for business. With a commitment to deliver an expanded Heathrow affordably with airport charges staying close to today’s levels – it is a huge prize for British business and Heathrow passengers.

Heathrow CEO John Holland-Kaye said “Parliament has ended 50 years of debate by deciding that Heathrow expansion will go ahead. This vote will see us deliver more jobs, create a lasting legacy of skills for future generations and guarantee expansion is delivered responsibly. We are grateful that MPs have made the right choice for Britain and today we start work to create the best connected hub airport in the world.”

Over the coming days, the Secretary of State for Transport is expected to designate the final Airports National Policy Statement approved by Parliament. This will set the policy framework for Heathrow’s northwest runway development consent application. Heathrow is currently preparing to hold a second public consultation on its plans before submitting a development consent order application to the Planning Inspectorate, kick-starting an approval process expected to take 18 months. In addition to Heathrow’s consultation, the development consent process will provide further opportunities for residents and stakeholders to influence Heathrow’s proposal. If Heathrow is granted development consent, construction would begin in 2021 ahead of the new runway opening in 2026.

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Urgent review of apprenticeship levy needed to reverse decline in apprenticeships

The 28% fall in apprenticeship starts between August 2017 and March 2018 compared with the same period the previous academic year suggests the Government needs to look again at the way the Apprenticeship Levy is working, according to the Federation of Master Builders (FMB).

Commenting on statistics published by the Department for Education (DfE), Brian Berry, Chief Executive of the FMB, said “The Government’s own statistics show a 28% plunge in apprenticeship starts over the current academic year so far. The Apprenticeship Levy was introduced in April 2017 to boost apprenticeship training across all business sectors but so far it seems to be having the opposite effect. Some reforms are obvious and need to be looked at more urgently now. The Government should allow large companies to pass more of their Levy vouchers down through their supply chains if the company itself is not in a position to train apprentices. Currently large firms are only permitted to pass 10% of their Levy funds down to their sub-contractors and others in their supply chain. There needs to be much greater flexibility than this. In the construction sector, larger firms often do not directly employ on-site tradespeople or directly train apprentices and so there is a real danger this industry and others will continue to fail to take advantage of the Apprenticeship Levy if we can’t change this.”

“These figures have been published shortly after the FMB’s latest research which shows that small construction firms are experiencing record highs in terms of skills shortages. In the long term, the only way we will be able to address the chronic skills crisis is by recruiting and training more new entrants. We know that 58% of builders are struggling to hire bricklayers and 55% are having difficulties finding carpenters and joiners. We need to iron out the flaws in the Apprenticeship Levy and reverse this decline in apprenticeships to give us the best chance of tackling these skills shortages.”

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Are building services a dying art?

The construction sector is no stranger to a challenge, but as Mark Farmer – author of last year’s “Modernise or Die” report – identified – “we are now facing a set of problems that we haven’t seen before”.

However, is there a solution? Are the problems out of our control as individuals? Or is there a turning point ahead? As Novo, a UK leader in recruitment for the construction sector explains, the problem and solution lies in attracting, recruiting and retaining the best staff.

Factors out of our control?

Many of the problems in the industry are outwardly obvious. Economic uncertainty in light of Brexit, discontent in poor quality building and poor productivity, are all having a negative effect before the problems can even start to be addressed.

One area that people may not be as aware of is the problem of an ageing workforce. The Building Services in particular is where we are in severe danger of losing a generation of knowledge with a distinct lack of talent to take up the mantle. The simple fact is that the construction industry as a whole is failing to attract the requisite amount of people to the industry. In the case of Building Services, from what we see in the market, the problem is even more alarming.

Develop passion from an early age

This of course stems from school years. Students still perceive construction as workers on a site laying bricks, digging foundations and sitting in hot vehicles. They don’t see the rich tapestry of careers the construction sector offers, on and off the site. From designing iconic buildings, buying materials for projects, managing logistics, health and safety, electrical installations – the list goes on and on. Like any other industry, construction needs to be shouting about variety.

This lack interest or education at an early stage, has led to the building services community, in particular, being heavily weighted towards the older end of the spectrum with a huge void left in the middle and at the bottom. Instead, we are finding candidates in their late 20s and 30s step up into management roles but without the benefit of the vast bank of knowledge from their older peers.

Yes, there are some extremely talented younger individuals working in the sector but in a market that has increased by 25% in the last 5 years, there simply isn’t enough at present to carry through a smooth succession plan for the continuity of the industry. Indeed, Building Services could take a leaf out of the Mechanical and Electrical systems industry which has seen increased growth after past struggles.

What can the industry do?

So, what is being done? Apprenticeships obviously offer a gateway to the industry but uptake for Building Services apprenticeships remain dangerously low. While work is being done to attract students to careers in STEM, the fields of science, technology, engineering and mathematics are so broad that funnelling potential candidates through specifically to the building services sector is not straightforward. Again, the solution may lie in making the sector a lot more attractive to the younger generation, so they actively seek out opportunities.

It may be that M&E Contractors themselves need to invest more time in making the sector more appealing to the younger generations– “sexing it up” for want of a better phrase. After all, working as part of a great team on iconic buildings that shape skylines across the world is an exciting occupation to be involved with, it just needs to be promoted more.

The state of the industry

It certainly makes for an interesting sector in which to recruit. Skills shortages may lead to a competitive but ultimately unsustainable bubble where large premiums are paid for senior staff and businesses squabble for the best of the limited young talent pool.

While the future of the building services sector will certainly be interesting to follow, the unsustainable question must be addressed. If it isn’t, we may find our landscapes and skylines will be dramatically changing as the generations go on.

Guest post courtesy of Novo UK, construction recruitment specialists.

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Tradespeople shake off stereotypes by choosing work over World Cup

For years, tradespeople have been tarnished with the reputation for prioritising football over work. Many members of the public see them as being a bit too eager to down tools and head to the nearest big screen.

However, recent research among tradespeople busts this myth.

The UK’s leading online trade supplier, IronmongeryDirect, has run a series of polls to find out more about tradespeople’s attitude to work during the World Cup. Many participants, including builders, carpenters and joiners, are currently planning when and where they will be watching their team – but outside of work.

According to a poll of more than 1,000 IronmongeryDirect customers, over 75% of tradespeople claimed they would never consider skipping work to watch their team.

However, if they were to ‘pull a sickie’ to watch an important match, tradespeople gave some of their best excuses, with the more elaborate ones including:

  • “I’ve been called up as a late replacement by Gareth Southgate”
  • “My boyfriend’s in labour.”
  • “I’ve got soap in my eyes and can’t find a towel.”
  • “I’ve been delayed at the airport on holiday…in Scarborough.”
  • “My Auntie’s Gerbil is about to give birth and I’m the nominated birthing partner.”

Some of the more convincing examples included:

  • “I have a dentist appointment.”
  • “The children are poorly.”
  • “I’ve got the flu.”

Employers are recognising that the World Cup is important to many of their staff. Many responded to the polls saying they would be more than happy to be flexible by offering them time off. One respondent stated: “As the boss, I always give my team the time off. It also saves them giving me the daft excuses!”.

The research also revealed ongoing optimism among tradespeople, with more than half believing England will make it to the Quarter Finals. Also, half of those polled (49%) said they would give up alcohol for good to see England win the tournament.

Andy Wood, football enthusiast and Marketing Director of IronmongeryDirect, said “The World Cup is an exciting time for many of us – tradespeople are no exception. We wanted to find out how our customers were preparing for the year’s biggest sporting event. The research was carried out in the name of fun, but it was great to see results challenging the outdated stereotype of contractors and other trades professionals neglecting their jobs for football! Tradespeople in Britain work hard, and we hope they enjoy watching World Cup 2018.”

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Nearly 80% of builders call for licensing scheme to crush the cowboys

Almost 80% of builders are calling for more regulation in the construction industry to end the tyranny of cowboy builders, according to the Federation of Master Builders (FMB).

The FMB is calling on the Government to introduce a licensing scheme in construction as part of its Agenda ‘Raising the bar: A post-Grenfell agenda for quality and professionalism in construction’.

Brian Berry, Chief Executive of the FMB, said “Until we introduce a licensing scheme in construction, cowboy builders will continue to run rampant in our industry. Licensing would ensure a minimum level of competence and professionalism and give consumers greater assurance when hiring a builder. Unlike in the US and Germany, anyone can be a builder in the UK. What this means is that we have allowed a significant minority of cowboy builders to give the whole construction industry a bad name. Our latest research shows that almost 80 per cent of our members are so fed up with rogue builders tarnishing their reputation, they are in favour of introducing a licencing scheme. Our research among consumers also shows that one third of home owners in the UK are so anxious about hiring a dodgy builder that they don’t commission any building work whatsoever. What’s more, the average home owner would spend around £40,000 on major home improvement projects over the next five years if they could be guaranteed a positive experience with their builder. It’s time to release this pent up demand for building work through a licensing scheme consumers can trust.”

“Even more important than the economic benefits that would come from increasing quality and professionalism in the industry are the safety benefits. The Grenfell Tower tragedy reminded us of the price paid when things go wrong in the construction industry. Grenfell raised serious questions about standards, regulation and compliance within the construction sector and although we await the results of the Hackitt Review, we want to start a wider conversation about how we can drive up quality and professionalism in construction. As well as calling on the Government to introduce a licensing scheme for builders, the FMB’s new Agenda calls for mandatory warranties for building projects that require building control sign-off to protect consumers further. The FMB would also like to work with industry to develop a ‘general builder’ qualification which would seek to recognise the highest standards of professionalism in the industry.”

Jason Ryan, a home owner living in West London, was a victim of a rogue building firm earlier this year. Ryan commented on the introduction of a licencing scheme in construction: “At the start of this year, builders were carrying out essential improvements to my home in West London. The whole process turned out to be an absolute nightmare. Our builder would often turn up late, or not at all, and communication was always poor. We would try to call him and often not hear back. The work they eventually carried out was sub-standard – for example, the grooves in the door frames were hacked into and were left uneven and messy. I think all builders should be required to have a licence to protect people like me from having these nightmarish experiences. It was very stressful and has put me off hiring a builder in the future unless I absolutely have to.”

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