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.

Commercial buildings: the importance of being efficient

Commercial properties make up an enormous portion of the built environment. They serve as a platform for most of the country’s major industries and provide the general public with areas in which to work, shop, socialise and relax. Needless to say, commercial buildings play a crucial role in 21st century Britain. However, despite investment in this booming sector being ever on the rise, commercial buildings are amongst some of the poorest performing buildings in terms of energy efficiency. Joe Bradbury, Editor of Building Specifier and MMC Magazine investigates the importance of efficiency, exploring what changes can be implemented in 2018 going forward in order to help achieve this goal.

According to the Committee on Climate Change, the commercial sector is accountable for approximately 26% of all greenhouse gas emissions from buildings in the UK. The world’s population is currently consuming the equivalent of 1.6 planets resources a year. The Global Footprint Network estimates that if we continue to consume at current rates we’ll blow the global carbon budget and lock in more than 2C of global warming in approximately 17 years.

As a result of this, the EU is currently reviewing its EU 2030 energy efficiency targets, with buildings in general highlighted as having great potential to reduce global emissions if efforts are made to make them more energy efficient.

How can we become more efficient?

There are so many things that commercial building owners and specifiers can do to become a little more eco-friendly, but in broad terms there is a 3-step process that should be followed in order to do so:

  1. significant investment in skills and capacity to enhance building management and deliver energy efficient refurbishment
  2. installation of low carbon generation capacity
  3. the design, manufacturing and fabrication of energy efficiency products and services

Heating and lighting are two areas in particular where changes need to be made. Let’s look at those two areas in more detail:

Light at the end of the tunnel

A cityscape at night is aesthetically a beautiful thing to behold; anybody who has seen the glowing lights of Vegas in the vast blackness of desert night, or London skyline reflecting on the surface of the Thames, will concur. Unfortunately, it is also an incredibly inefficient and irresponsible use of energy and a waste of precious resources. Overnight lighting is just one of many bad habits held by the commercial sector today. It is also one of the easiest to fix.

In 2013, France made it a legal requirement for shops and offices throughout the country to turn off their lights overnight in a bid to fight light pollution. This is expected to save 250,000 tonnes of CO2 per annum – roughly enough energy to power 750,000 French households for a year, according to the French Environment Ministry. So, if you want to reduce the carbon footprint of your building, put that light out!

Another easy but effective change that can be implemented immediately is to upgrade to LED lighting. It requires very little upfront investment, and delivers immediate returns.

Typically the energy savings made from switching from a conventional source to LED is 50-60%. They also require changing much less frequently, meaning that savings will also be made in terms of maintenance. This benefit is two-fold, affording the maintenance team the time to be more proactive in energy initiatives rather than changing lamps.

A recent California Energy Commission study also estimates that savings will be two times higher by the year 2020 by switching to LED than they are at present, when the technology becomes even more efficient.

A hot tip

The costs of heating and cooling a building are always on the rise. Often, addressing energy efficiency without a multi-system approach can be futile, with no tangible savings being made. Again, as with lighting, it is largely a behavioural change that will most benefit the commercial building sector in meeting efficiency targets going forward. For instance, a mere broadening of the range of temperatures inside your building, scheduling heating and lighting to vary according to peak occupancy times, can make drastic reductions to carbon footprint and energy bills.

Buildings are accountable for over 30% of final energy consumption in the world. 15% of this energy is used in the heating and cooling of interior spaces. Therefore it is imperative that you look at your heating and cooling systems if you want to make improvements.

Currently, the heating of buildings is largely based on fossil fuel burning technologies and cooling is dominated by incredibly carbon-intensive electrical systems. Studies suggest that by implementing low or zero-carbon heating and cooling methods in buildings – such as solar thermal, heat pumps, combined heat and power (CHP), and thermal energy storage – we have the potential to lower CO2 emissions by approximately 2 gigatonnes and save 710 million tonnes oil equivalent of energy over the next 34 years.

For many existing buildings, a change in the heating a cooling system and the building envelope accordingly can prove to be high in initial outlay and very disruptive. Some retrofits need a complete overhaul of their existing heating and cooling systems, insulation, windows etc. Sadly, the higher initial costs involved and the subsequent longer wait for financial return results in many buildings choosing to plod on using existing inefficient heating systems. This often hampers other energy efficiency efforts that have been made, making the strive for energy efficiency an earnest but ineffective endeavour.

Although it can be expensive, do not overlook the multitude of sustainable heating and cooling options on the market today. It is only through a multifaceted approach that the commercial building sector can truly make a tangible impact on its carbon footprint.

In summary

An efficient building is a productive building. By being considerate in how we generate and use energy, we can help reverse manmade climate change whilst simultaneously receiving a series of lucrative fringe benefits as an industry. We can also set an example for future generations to follow – ensuring that professionals within the built environment always have a healthy, vibrant environment in which to build for many years to come.

/3 Comments/by

Average house built in England will have to last 2,000 years

The average new home in England will have to last 2,000 years if the sluggish rate of house building and replacement continues, the Local Government Association have warned.

The country has not built enough homes for decades. As a result, existing homes must house more people and last for much longer, which has led to the country spending nearly as much on the repair and maintenance of existing homes as it does building new ones.

But analysis reveals that one in 10 new home buyers are dissatisfied with the quality of their new home and one in six would not recommend their house builder to a friend.

The research, carried out for the LGA, also reveals most local areas have more homes built before 1930 then from any other period of time, demonstrating the age of much of England’s housing stock.

The LGA is calling on government to help councils build a new generation of high quality, genuinely affordable and additional homes, supported by adequate infrastructure and services. Housebuilders also need to work with councils to ensure new homes are built to a good quality, and will stand the test of time.

With increasing numbers of people in the private rented sector, council leaders are also concerned that 28 per cent of privately rented homes are not decent, an increase of 150,000 homes since 2006. In comparison, council homes are more likely to be better quality, with 85 per cent meeting the decent homes standard, an increase from 70 per cent in 2008.

Local government leaders insist a “national renaissance” in council housebuilding must be central to solving our housing shortage and improving quality, and for delivering the mix of different homes that meet the growing and changing need of communities.

For this to happen, the LGA said councils need to be able to borrow to build and to keep 100 per cent of the receipts of any home they sell to reinvest in new and existing housing.

Cllr Judith Blake, LGA Housing spokesperson, said “Our country’s failure to build enough homes over the past few decades is putting huge pressure on our existing housing stock.

“Families are having to spend more on rent or mortgages every month and deserve a decent home that is affordable. But as costs are rising, so is dissatisfaction with the standards of new homes.

“Everyone deserves an affordable and decent place to live. It’s crucial that all new and existing homes are up to a decent standard.

“Councils need to be able to ensure quality through the planning system, and to encourage high standards in rented and owned properties across the board.

“To spark a desperately-needed renaissance in council housebuilding, councils also need to able to borrow to build new homes and keep all receipts from any homes they sell to reinvest in building new homes that are of a good quality and affordable.”

/0 Comments/by

Boosting construction productivity could deliver £15 billion savings every year

New plans set out by the Department for Transport will revolutionise British infrastructure and boost the construction sector’s productivity in a move that could generate savings of £15 billion a year.

The plans were revealed alongside the National Infrastructure and Construction Pipeline, which sets out projects for the next 10 years.

This £600 billion pipeline includes both public and private investment. It will give certainty to industry that there is great appetite to develop infrastructure and will encourage the sector to invest in the right technology and skills to meet this demand.

The Transforming Infrastructure Performance programme sets out how the government will ensure these projects are delivered swiftly and efficiently. It contains ambitious plans to transform infrastructure delivery over the long-term, using the government’s influence to drive modern methods of construction so Britain can lead the world in high-tech building. The Transport Infrastructure Efficiency Strategy sets out how these lessons will be applied to drive efficiency and productivity in transport.

Andrew Jones MP, Exchequer Secretary to the Treasury, said “We are backing Britain with a record amount of infrastructure investment as we build an economy fit for the future. That’s why we’re working with the industry to skill up and scale up for the challenges ahead.

“Investing in infrastructure boosts productivity for the economy as a whole. The scale of the investment we are talking about here will deliver a step change for our country.”

Transport Secretary Chris Grayling said added “We’re undertaking the most ambitious improvements in our transport network this country has seen for decades. But we must also drive forward plans to ensure these infrastructure projects are completed on time and on budget.

“World-leading projects such as Crossrail, the Ordsall Chord and the huge investment programme in our major roads show that Britain can deliver on time and on budget, boosting jobs and growth and creating new opportunities across the nation. But we want to do better. This strategy shows the way and sets out our standards for how we will do more and better in future.”

The government is a major player in construction and delivers many projects every year, such as transport, schools, prisons and hospitals. This accounts for a quarter of all construction projects, and using this purchasing power will enable ministers to drive innovation and encourage firms to invest in modern methods and technology.

Methods such as off-site manufacturing, where projects are part-constructed before being assembled on location, can boost productivity by reducing waste by 90% and speed up delivery times by more than half (60%). For example, a school that typically takes a year to build could be done in just over 4 months.

The announcements tackle this head on and give the sector the certainty to start investing in the right technology and skills.

Tony Meggs, Chief Executive of the Infrastructure and Projects Authority (IPA), said “Publishing our Transforming Infrastructure Performance (TIP) programme demonstrates our commitment to tackling the annual £15 billion productivity gap in construction. The IPA has a significant role to play in helping to create a more productive and innovative sector.

“We want to maintain confidence in the sector and will work alongside industry, using our purchasing power to drive the adoption of modern methods of construction in both new and existing infrastructure. The scale of ambition is great but by aligning our initiatives we can work with industry to deliver transformation for the sector.”

Andrew Wolstenholme, Co-Chair of the Construction Leadership Council (CLC), said “The Transforming Infrastructure Performance programme presents a huge opportunity for the industry and government to reap the economic gains from improving productivity during the delivery of the UK’s £600 billion infrastructure pipeline. Transport is a huge part of that.

“I am delighted that the IPA, DfT and CLC are working closely to encourage construction clients to procure on the basis of whole life value, deliver more industry led innovation, develop the skills we need for the future and give the UK a competitive advantage in exporting new technologies and expertise. I am proud to chair the Transport Infrastructure Efficiency Taskforce which will ensure these strategies are brought to life across the transport sector.

“It all adds up to better economic and social infrastructure, as well as more homes, delivered quicker, at better value and more sustainably than ever before, underpinning the UK’s growth and providing jobs all over the UK.”

 

/0 Comments/by

Government unlocks £25 million to deliver more homes

A new £25 million fund has been launched to help local authorities to deliver the high quality, well designed homes that this country needs.

Housing and Planning Minister Alok Sharma this week announced that the Planning Delivery Fund is now open for bids and will support ambitious local authorities and third sector organisations in areas of high housing need to plan for new homes and infrastructure.

Initially opening up £11 million of the fund, councils will be able to apply to help gain the skills or capacity they need to deliver high quality housing growth at scale, pace and implement wider planning reforms. The fund is aimed at encouraging more innovation in the design quality of new housing developments, as well as provide design advice and support to local authorities.

As part of the government’s plans to raise housing supply to 300,000 per year on average by the mid-2020s, a package of measure has been announced to boost local authority planning capacity, support councils to take a proactive role in planning and encourage ambition and leadership in the delivery of new communities.

Others measures announced along with the £25 million Planning Delivery Fund include:

  • a further £3 million funding to support the delivery of the 14 garden villages that are part of the government’s existing programme
  • publishing a consultation on plans to allow the creation of locally led New Town Development Corporations, and help speed up the delivery of new garden towns

Housing and Planning Minister Alok Sharma said “Locally-led developments have enormous potential to deliver the scale and quality of housing growth that we need. By supporting our local authorities, we will be able to unlock more homes where people want to live.

“These measures including the £25 million of government support which will help develop new communities that will not only help deliver high-quality well-designed homes, but will also bring new jobs and facilities and a boost to local economies.”

Across England, the government is currently supporting 24 locally-led garden cities, towns and villages, which have the potential to deliver around 220,000 homes.

Backed by £16 million funding, a further £3 million has been allocated to 14 garden villages in the programme to fund dedicated staff and studies and assessments that are vital to the delivery of garden villages that are key to successful delivery.

The government’s housing white paper in February 2017 committed to the creation of New Town Development Corporations, which would be overseen by the local authority or authorities covering the area proposed for a new garden community, rather than by Whitehall. Government is now seeking views on this proposal.

/0 Comments/by

Construction project starts forecast to steady in 2018

Glenigan expects the value of construction starts to stabilise in 2018, after the declines seen over the last two years, as construction clients adapt their investment plans to the changing political and economic environment.

Commenting on the prospects for the industry, Glenigan’s Economics Director, Allan Wilén said “The value of underlying construction projects has fallen back this year amid continued political and economic uncertainty, delays to public sector projects and a weakening in housing market activity.”

“Whilst a weak UK economy is forecast to constrain construction activity over the coming year, we anticipate greater stability in overall construction starts as strong growth in hotel and leisure, industrial and education work help offsets weakness elsewhere.”

“The industrial sector is forecast to be a growth area as technological and social changes reshape consumers’ retail habits and drive the demand for logistics space. We expect these structural changes to be a long term driver for warehousing and logistics projects as online retailing takes an ever larger share of retail sales and as retailers adapt to changing spending patterns and shopping habits. The Midlands, North West and parts of the South East of England are favoured locations for such facilities, offering good access to national transport networks and the UK’s major population centres.”

“The hotel & leisure is also forecast to be a growth sector over the coming year. Consumer spending on leisure activities remains firm and the sector is benefiting from the depreciation in the pound over the last two years which has boosted UK tourism and encouraged UK consumers to holiday at home.”

“Demographic changes are set to shape the pattern of construction activity. Increased investment is anticipated to expand the secondary school estate in order to accommodate rising pupil numbers, especially in the UK’s major conurbations. In addition universities are investing in new facilities as they compete for UK and overseas students.”
“Growth in these areas will help offset weakness in the private housing and office sectors.”

“Real household earnings growth has stalled due to weak wage growth and higher inflation. This is forecast to slow housing market activity, with weak new house sales holding back sector activity. The value of private housing projects starting on site is forecast to drop 3% next year as housebuilders prioritise building out current developments and open fewer sites.”

“Political and economic concerns arising from the EU referendum depressed office project starts during 2016 and 2017. These concerns are expected to persist as investors appraise the implications of Brexit and of slower UK economic growth for the demand for office space and rental values. Developments in the City of London and Docklands will be especially vulnerable with weaker demand for accommodation as financial institutions consider relocating operations to elsewhere within the EU.”

“Major infrastructure schemes, including, Thames Tideway, HS2 and Hinckley Point, are forecast to drive civil engineering activity next year. The value of smaller scale projects starting on site have fallen back sharply this year and are expected to weaken further in 2018 as investment is dominated by flagship projects.”

GLENIGAN

A full copy of the Glenigan Outlook Forecast is available to download here.

/0 Comments/by

Construction workers urged to take extra care on site this winter

With parts of the UK experiencing bitterly cold weather, roof systems manufacturer Marley Eternit is warning outdoor construction workers to take extra care this winter.

Freezing cold temperatures, ice and shorter periods of daylight mean there is a much greater risk of accidents on construction sites during the winter months. As well as the risk of slips and falls, prolonged exposure to the cold can cause construction workers to suffer from more colds, bronchitis, asthma, painful joints and fatigue. In extreme cases, workers outside for long periods, without the right protection, could even suffer hypothermia, frostbite and chilblains.

Katie Prestidge from Marley Eternit comments: “In the UK, there is no legal minimum outdoor working temperature. So, it is important that all construction workers understand the hazards of working in winter and know what precautions to take when cold weather sets in. Builders and contractors must carry out their own thermal risk assessments and take appropriate action to protect their employees.”

The National Federation of Roofing Contractors (NFRC) is backing Marley Eternit’s winter safety campaign. Gary Walpole, the NFRC’s Technical and Health & Safety Officer, said “Accident statistics prove that there is an increased risk of personal injury during the winter months. Increased hazards from reduced daylight hours and inclement weather, means precautions need to be taken in advance to protect the wellbeing of our workforce.”

Marley Eternit has put together the following advice to help construction workers stay safe on site this winter:

Site managers and supervisors

Monitor the weather forecast so you can anticipate and be prepared for poor weather conditions

  1. Carry out a risk assessment every day to check that it is safe to work and that conditions haven’t changed. Pay particular to working at height platforms and walkways. Do not work on roofs in icy conditions
  2. If windy, HSE recommends that roofers should check wind speeds with a hand held anemometer and refer to NFRC guidance on roofing in windy conditions*
  3. Make sure workers are trained on winter hazards and ensure they have the appropriate PPE
  4. Limit worker exposure to cold through job rotation and provide plenty of breaks in heated areas with hot drinks available

Site workers

  1. Make sure you are wearing the right PPE and extra clothing suitable for the job and the weather conditions. This usually involves using several layers of clothing, as well as waterproofs or wind resistant fabrics where necessary. Also choose water resistant footwear, with enhanced slip resistance or ice grips if required
  2. Wear gloves when fine manual dexterity is not required and the temperature drops below 4°C
  3. Cold weather increases the risk of hand-arm vibration syndrome, so keep your hands and arms warm when using vibratory equipment such as drills, nails guns and even hand tools, such as hammers
  4. Choose hats that work with safety headgear and don’t compromise any eye or hearing protection
  5. Be aware of the symptoms of cold exposure – heavy shivering, uncomfortable coldness, numbness, aching, severe fatigue, confusion, drowsiness and/or euphoria
  6. With reduced daylight hours, visibility can be a problem, so wear reflective PPE
  7. Take breaks in heated areas and drink plenty of fluids, including water and warm beverages
  8. Report any hazardous areas to the site manager and do not put yourself at risk just to complete a job.
/0 Comments/by

Report shows public backing for infrastructure and housing investment

 

More than half of people in the UK rank housing as the most important investment priority for the country, closely followed by renewable energy and major roads, according to a new report published today.

The report, published by Copper Consultancy in partnership with TLF Research, and launched at the Institution of Civil Engineers, found that the majority of people in the UK support infrastructure investment, but do not feel that they have enough information available on the future of infrastructure and housing.

Almost 60% of people stated they would be more interested in infrastructure and development projects if the benefits were clearly explained.

The research showed that almost everyone has a view on the condition of housing, roads and rail, but there is less understanding of infrastructure where the benefits are not explained.

Linda Taylor, managing director of Copper Consultancy, said “What’s clear from the research is that the public wants the opportunity to support infrastructure investment, but unless they understand the benefits, people do not feel equipped to get involved.

“The public wants support in linking projects to day to day life and experiences. We’re left with an investment-benefit disconnect.

“The government and industry have an opportunity to tell a coherent story about the real life benefits that investment in infrastructure and housing delivers. Our research shows that when the benefits are made clear, the public is supportive. If we achieve this, public support for infrastructure could lead to fewer delays to projects and the benefits of infrastructure will be realised sooner.”

President of the Institution of Civil Engineers, Professor Lord Robert Mair CBE FREng FICE FRS, said “The report makes a major contribution to our understanding of the public’s aspirations for UK infrastructure. At a time when infrastructure is key to the future of the UK’s economy, the report’s findings are not only timely but also encouraging.

“The report shows the public can link positive change to infrastructure investment if they understand the benefits as outcomes and impacts to them. Engaging and educating the public – who are ultimately the customers and end users in infrastructure – is therefore crucial. To achieve this, we need to change the language around the subject and make the profession of civil engineering more accessible. It is up to us to take the findings of this report forward and to proactively tell our stories to the public.”

Nigel Hill, chairman, The Leadership Factor said “There is public support for investment in housing and infrastructure but also significant concern that the two are often not sufficiently linked. There is a strongly held view that planning permission should be more influenced by the adequacy of the surrounding infrastructure especially roads, other transport links and schools.”

Click here to view the full report.

/0 Comments/by

Campaign launched to encourage more women into construction

Considerate Constructors Scheme’s industry survey reveals more needs to be done to change perceptions and encourage more women into construction

Whilst 79% of respondents said the construction industry has improved its approach in encouraging women into construction, 52% have witnessed or experienced sexism within the industry.

The survey also reveals the main reasons women do not choose to work in construction cited as being:

  • working conditions – 22%
  • lack of female role models – 22%
  • negative image of the industry – 20%

The UK and Ireland campaign ‘Spotlight on…women in construction’ has been launched by the Considerate Constructors Scheme to boost the much-needed industry effort to attract more women into the construction industry.

The Scheme, which makes around 15,000 monitoring visits to construction sites, companies and suppliers every year, surveyed over 1000 people to find out why women still only represent a meagre 11% of the construction industry workforce. The Campaign provides a variety of practical steps that can be taken to address this issue in the short, medium and long term.

The survey findings also revealed that:

  • 94% of respondents agreed that the industry would benefit from employing more women.
  • 76% said there are no construction jobs which only men can do.
  • 74% said there should not be quotas for hiring women into construction.

It is clear from the survey, that although some results appear encouraging, there is still a huge amount to be done, particularly in addressing sexism and changing misguided perceptions of what a career in construction offers to women.

‘Spotlight on…women in construction’ pulls together the latest and greatest examples of best practice, case studies from women working across the construction industry, legal requirements and links to useful organisations encouraging women to work in construction.

The Campaign extends the Scheme’s influence in this important area; by complementing the Scheme’s monitoring Checklist which asks several questions about equality and diversity to raise standards across the thousands of Scheme-registered sites, companies and suppliers; and the role of the industry mascot, Honor Goodsite in visiting hundreds of schools across the UK and Ireland every year.

The importance of having role models is absolutely critical. As such, ‘Spotlight on…women in construction’ has interviewed a number of women within the industry to examine what opportunities and challenges they have faced and why construction offers a great career for women of all ages, backgrounds and skills.

Case study contributions include: Roma Agrawal, (Structural Engineer at AECOM and a Director of the CCS); Stephanie Bennett, (trainee Quantity Surveyor, Morgan Sindall); Victoria Betts, (Senior Site Manager, Higgins Construction), Sally Cave, (first qualified female Gas Membrane Installer in the UK); Margaret Conway, (Project Manager for McAleer & Rushe and winner of CIOB Construction Manager of the Year 2017 Award); Michèle Dix (Managing Director, Crossrail 2); Katie Kelleher (Crane Operator, Laing O’Rourke); Eillish Kwai (Employment and Skills Manager, Ardmore); Kath Moore, (Carpenter and Chief Executive, Women into Construction); and Megan Robinson (Technical Coordinator at Barratt Developments plc).

Managing Director for Crossrail 2, Michèle Dix said “Women are still underrepresented at present but I think we are starting to move in the right direction. We need to recognise the need for more flexible working arrangements, especially if we are to encourage women back after taking time off for children.

“I think there are lots of opportunities out there and one message I would give to my fellow women colleagues is “go for them!”. Be confident in your own abilities. The industry has so much to offer.”

Site Manager for Higgins Construction, Victoria Betts said “In the time I have been working in the industry there has definitely been an increase in the amount of females working in it. The Considerate Constructors Scheme has been a big driving force in this as it insists on facilities for females that previously would not have been in place.”

Considerate Constructors Scheme Chief Executive, Edward Hardy said “Thank you to everyone who has contributed to ‘Spotlight on…women in construction’. The Campaign provides a must-read set of resources for organisations and individuals who would like to improve their standards of considerate construction – with the aim of driving greater equality, diversity and inclusion throughout our industry.

“Not only is it imperative that standards must be raised in this area, in order to help encourage more women into the industry, but a more equal and diverse workforce also brings greater collaboration, creative thinking and more inclusive workplaces. This can only be a positive step in helping to improve the image of the UK and Irish construction industries.”

Click here to read ‘Spotlight on…women in construction’.

/0 Comments/by

Autumn Budget – industry overview

At 12:30 today Chancellor Philip Hammond delivered his ‘make or break’ autumn budget to the chamber. Touching on key issues such as the housing crisis, skills shortages and planning reform, the latest budget included much for the construction sector to get excited about. But with the Chancellor’s promise of 300,000 new homes a year by mid-2020s, will the range of measures signalled in today’s Budget be enough to achieve that ambitious target? Buildingspecifier.com takes a look at what the industry is saying in response:

Housebuilding increase

A lot has been made in the run-up to the budget of the Government’s expected target to build 300,000 new homes next year. Speaking about this afternoon’s announcement, Bjorn Howard, CEO of Aster Group, said “We welcome the clear-cut push to increase housing stock, but would have liked Mr Hammond to have acknowledged that variety is as much a problem as volume for the sector.
“Housing is increasingly a point of division in society. Remedying this depends on tackling affordability and choice in the market, including greater availability of alternatives to traditional rent and homeownership options, such as shared ownership. This is where housing associations, alongside local councils empowered by greater borrowing freedom, can play an important role in increasing the number of affordable homes across the UK.”

SME builders

The Chancellor Philip Hammond has clearly delivered a ‘budget for builders’ that should allow small builders to deliver more of the new homes Britain so badly needs.

Commenting on the Budget 2017, Brian Berry Chief Executive of the FMB said “The Government has set itself a new target of building 300,000 new homes a year by the mid-2020s. And today the Chancellor has put small and medium-sized builders at the heart of ambitious plans to tackle the growing housing crisis. The Chancellor appears to be putting his money where his mouth is with the announcement of £44 billion of capital funding, loans and guarantees. In particular, a further £1.5 billion for the Home Building Fund to be targeted specifically at SME housebuilders can play a significant role in channelling crucial funding to this sector. A £630 million fund to prepare small sites for development and proposals to require councils to deliver more new housing supply from faster-to-build smaller sites will provide opportunities to boost small scale development.”

David Gray, Bid Development Director at AM Bid, added “The Chancellor’s announcement of £1.5bn of new money for the Home Builders Fund will be welcome news for SME housebuilders looking to bid for construction contracts across the UK.

“Moreover, the commitment to provide at least £44bn capital funding, loans and guarantees to support the housing market over the next five years, should result in a marked increase in construction contract opportunities. These contracts will be necessary to help support the delivery of the 300,000 new homes per year the Government is aiming to deliver by the mid-2020s, which would represent the highest level of new housebuilding seen in the UK since the 1970s.”

Borrowing caps

On Housing Revenue Account borrowing caps being lifted for councils in high-demand areas, Gavin Smart, deputy chief executive at the Chartered Institute of Housing (CIH), said “We have long argued that if we are going to build the homes we need councils will have to play a major part and we welcome measures to support this. The government has made a series of announcements in recent months which lay the foundation for housing associations to commit to developing many more new homes and we must do the same for councils. Relaxing borrowing caps for councils in high demand areas is very positive – we hope to see the government build on this move so that we see a return to the levels of council house building we need.”

Modern methods of construction

As part of his budget speech, Chancellor Philip Hammonds indicated that the government would release more funding to the education sector to alleviate overall financial pressures on schools. However, the Chancellor failed to mention the potential of both offsite construction and energy efficient retrofitting practices as potential areas where savings can be made.

Commenting, Neil Smith, Chief Executive Officer at Net Zero Buildings, said “While we welcome the extra funding, the evidence shows that the government could also ease the funding pressures that schools are facing in different ways. We cannot afford to waste this new funding on inefficient new buildings that are not fit for purpose for teachers or pupils.

“As 60% of school buildings were built before 1976, many head teachers are having to consider how to fund new buildings against a tight budgetary backdrop. A new report we have commissioned with the Centre for Economics and Business Research (Cebr) has found that modern building technologies could meet the growing demand for new school buildings while saving the Department for Education (DfE) billions of pounds. It also concluded that if all schools in England were as efficient and economical to maintain as the UK’s most energy efficient school buildings it would save the DfE £2.6bn a year.

“Across the country, millions of pounds can be saved every year on school lifecycle and maintenance costs if head teachers are prepared to think differently in how we create new buildings.”

Build to Rent

The Government’s push for longer-term tenancies is very welcome news for the build to rent sector and for UK renters.

Dominic Martin, Head of Operations at Atlas Residential said “Providing the customer with greater flexibility and security through long-term tenancies is a positive step forward for the rental market and an acknowledgement that the customer should remain firmly at the heart of everything we do – these are people’s homes.”

Materials

The Brick Development Association, representing brick manufacturers in the UK, welcomed the Chancellor’s target for new homes, announced in the budget today, stating with confidence that the brick industry is ready.

The number of new homes delivered in the last financial year – at 217,350 – is 12% up on the previous year, with brick deliveries also rising at 12% over the same period, suggesting that supply and demand are in balance.

Today’s speech presented an ambition to deliver an annual total of 300,000 new homes each year by the mid-2020s – approximately eight years from now. This represents a 38% increase. Brick manufacturing output is increasing year on year with growing investment in plant and equipment. The brick industry is unusually adaptable and in the last eight years production output has risen 38.5%.

Supplying a very volatile housing market is never easy for manufacturing suppliers, but the brick industry has proved itself particularly able to scale up demand as required and is currently well able to meet demand from new house building.

“We are delighted at the focus on housebuilding in the budget” commented Tom Farmer of the BDA. “It is time for the country to face up to the economic and practical challenges and actually build enough homes for the people that live and work in the UK. I am delighted to be working in an industry that is keeping pace with this fast-moving sector and which is ready to gear up to meet increased demand.”

Skills shortage

Although the budget contained many impressive statements related to getting Britain building, it didn’t say much in the way of alleviating the skills shortage to ensure that we have the right people working within the industry to make it happen.

Brian Berry, FMB said “A major challenge to getting new homes built is the skills crisis we face. In the long run, the only real solution to chronic skills shortages will be a major increase in the training of new entrants into our industry. We are therefore pleased to hear the Chancellor has today committed extra resourcing to training for construction skills. With Brexit round the corner the next few years will bring unprecedented challenges to the construction sector. The Government will need to make sure that the sector continues to have access to skilled EU workers, but we are pleased that the Chancellor has today listened to the needs of SME builders.”

In summary

It was dubbed as Hammond’s ‘make-or-break’ budget; there were three key challenges facing the Chancellor today in a budget which was delivered against a background of Brexit and a substantial decline in growth forecasts which threatened his tenure. Housing, infrastructure and productivity announcements were the Holy Trinity designed to save his job.

Whilst the industry appears to welcome the government’s ambitious new target to deliver 300,000 new homes a year overall, concerns still remain about how we will build the right homes in the right places. And how will we ensure that they are affordable?

Abolishing stamp duty for first time buyers is welcomed, as is some form of planning reform but there was a meagre sum mentioned for training and throwing money at the housing crisis will not solve the labour shortage or skills crisis. Infrastructure investment is also welcome but we need concrete timelines rather than further hollow promises. Productivity is a complex issue and his comments on the role of digital enablement underlined that, as an industry, we need to help ourselves but again, short term improvement is linked to a guaranteed labour pool and Brexit has caused a stampede of trades out of the UK, something this government has exacerbated through their dithering. So the overall impression from the sector seems to be that it was a stalwart attempt but not enough to instil confidence as we crash out of Europe.

/0 Comments/by