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.

RIBA urges next Government to Build a Global Britain

The next Government must build new communities across the country and keep secure the UK’s position as the global leader in architecture and design innovation says the Royal Institute of British Architects (RIBA) in its General Election manifesto published today (Thursday 25 May).

RIBA’s ‘Building a Global Britain’ manifesto says the UK must:

  • Grow as a global trading nation –ensuring the existing mutual professional recognition agreement with the EU is maintained as part of the Brexit negotiations and that new mutual recognition agreements are developed with other key trading nations including the United States, Canada, Australia and New Zealand.
  • Put local people at the heart of the planning system – delivering powers on housing and planning to regional and Metro Mayors so cities and regions can deliver more.
  • Deliver many more good quality homes that meet the needs of society – perusing development of new high-quality, affordable homes that alleviate the housing crisis and unstick some of the UK’s productivity problems.
  • Build schools that are better spaces for learning –ensuring better design of public buildings like schools, museums and hospitals to inspire communities and make the best use of scarce public money.
  • Show greater leadership in resilient infrastructure – Supporting innovation in flood defences to catalyse the UK’s export potential in new technologies.

RIBA President Jane Duncan said “People across the country will be keen to see how political parties respond to the challenges and opportunities of these changing times. Our political leaders recognise the need to improve quality of life across the country; they can start by supporting a better built environment. The RIBA’s manifesto outlines how the next UK Government can ensure that our communities have great high quality, sustainable places in which to live, work and play.
“The UK has a thriving architecture sector delivering inspiring buildings and places across our great nation and around the world. Our multibillion pound contribution to the UK economy and to the country’s reputation abroad is highly prized, and our universities train and equip the architects of the future.

“Whomever forms the next UK Government must recognise the strength and importance of our global cultural links and influence, and continue to support us by safeguarding our ability to attract the brightest and best talent from around the world, as well as ensuring post Brexit that architects practising in the UK are in an environment where they can thrive.”

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SME’s central to May’s house-building vision

In their election manifesto, the Conservative Party has pledged to 500,000 extra homes by 2022, as well as reaffirming their previous 2015 commitment to deliver a million homes by the end of 2020. As part of this, Theresa May must put SME house builders at the heart of her ambitious plans for housing, according to the Federation of Master Builders (FMB).

In response to last week’s release of the Conservative Party’s manifesto, Sarah McMonagle, Director of External Affairs at the FMB, said “The importance of addressing the country’s chronic shortage of homes is as great as ever, and the Conservative Party’s manifesto seems to appreciate the scale of the challenge ahead of us. A revised house building target of 1.5 million homes from 2015 to 2022 ups the ante on housing delivery again, but these ambitions can only be delivered with an accompanying focus on creating a more diverse and innovative house building sector. The decline in the number and output of smaller local house builders over the past few decades has led to the industry’s capacity haemorrhaging. To deliver the PM’s vision we will need to reverse this. The Manifesto’s explicit pledge to diversify the delivery of new homes is therefore extremely welcome. Key to doing this will be being able to build on some of the sensible reforms outlined in the recent Housing White Paper, which we hope to see implemented.”

“The Conservative Party’s manifesto sets out an ambition not only to build more, but to build better. There is a welcome emphasis on balancing the pressure for increasing the delivery of new properties with the need to deliver those homes to a high standard. As is widely recognised, smaller scale house builders have a strong focus on quality. By supporting greater diversity in terms of the companies building our new homes, a Conservative Government would be killing two birds with one stone. This is a vision that SMEs can build on.”

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£7.2m refurbishment plan announced for iconic brutalist building

One of London’s most prominent brutalist residential blocks, Trellick Tower, is set for a major £7.2m restoration programme with the appointment of leading social housing maintenance provider, Wates Living Space, to deliver extensive external works.

Carried out on behalf of Kensington & Chelsea Tenant Management Organisation (KCTMO), the work marks a major investment in the preservation of the historic tower in Kensal New Town.

Following extensive planning and liaison, work on the programme is scheduled to commence immediately and will include the repair, renovation and replacement of the Grade II* listed building’s concrete, cladding and approximately 1,000 windows.

Trellick Tower was designed by Hungarian Modernist architect, Ernö Goldfinger, and was built in 1972 as part of the Brutalist architecture movement that arose from the 1950s to the mid 1970s. The tower became the inspiration for JG Ballard’s novel ‘High Rise’, which was made into a film starring Tom Hiddlestone in 2015.

Wates will first commence work on the six-storey Block B, which will be followed by the external refurbishment of the 31-storey Block A in June this year. Overall completion is expected by summer 2018.

As part of the mobilisation of its team, Wates is currently making arrangements for a range of community initiatives that will be delivered throughout the programme. This will include a series of training and employment opportunities for local people as well as engagement with local social enterprises.

The project follows from a framework agreement between KCTMO and Wates, which began in 2015, for Wates to carry out internal and external works in the north of the borough.

David Morgan, Managing Director of Wates Living Space, said “It is a huge honour to be entrusted with the refurbishment of such a historically significant London tower block. This project will involve a meticulous balance of ensuring we preserve the building’s iconic status while, most importantly, delivering the vital work with minimal disruption to Trellick Tower residents. We very much look forward to continuing our work with KCTMO and to getting under the skin of what is a landmark piece of post-war architecture.”

Robert Black, KCTMO Chief Executive, added “We’re very pleased to be working with Wates on such an important project. Both ourselves and Wates are working closely with residents to ensure that they’re fully informed and we’re committed to supporting them throughout the project. This iconic building is a favourite to many and this work will help ensure it stays that way.”

In addition to its importance as a Grade II listed residential building, Trellick Tower has featured heavily in popular culture since its construction. This includes its appearance in a series of music videos throughout the past two decades.

Standing at 98m high, the building’s unique shape and structure was also the inspiration for Channel 4’s famous reinforced concrete ‘4’ that is used to link between its programming.

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New survey highlights issues and opinions in the construction industry today

UK Construction Week, the UK’s largest gathering and community of construction professionals, has conducted a survey to uncover and tackle issues facing construction, housebuilding and skills in the run up to the General Election. With over 1,000 responses from a cross section of professionals working in the sector, key points from the survey include:

  • Sir Richard Branson is named as ‘the best person’ to head up new UK infrastructure projects
  • 77% believe state intervention is needed for more housing
  • 38% want Gavin Barwell to retain his position as Housing Minister
  • 54% call for more housebuilding on brownfield sites

One of the most significant results from the survey was for Sir Richard Branson, who was voted as the best person to spearhead new UK infrastructure projects, such as HS2 and Heathrow Airport, signalling a need for more entrepreneurial vision in tackling large scale projects.

On the result, Sir Richard Branson said “I’m very flattered by the survey. The only danger is that if I oversaw these key infrastructure projects then by the time I’ve finished there would only be room for one airline and one train company, both beginning with the letter V! The key thing one needs to get right is to plan these major projects with the customer’s needs in mind. Too often these are planned by engineers for engineers and fail to meet the user’s demand. This means they are underused and fail to have the major impact they should do.”

Further results show a three way split on the government’s current housing policy with a third of those polled voting both for and against current policies, and a third not convinced either way.

Over half of those surveyed (54%) called for the next elected government to be more aggressive with planning permissions on brownfield sites to enable house building. Only 11% voted to loosen Green Belt restrictions, dispelling the myth that the construction industry wants to build on protected land.

Although the industry isn’t wholly satisfied with current housing policy, Gavin Barwell was voted overwhelmingly in favour as the best man for the job of Housing Minister, with the next name suggested, Boris Johnson, only receiving a quarter of the number of nominations. Labour’s John Healey, previous Housing Minister under the Labour government, was the third suggestion.
77% of those surveyed believe the only way to reach 1 million homes by 2020 is by state intervention, and for a council house building programme to begin.

For infrastructure, there was a two way split between Vince Cable and Sir Richard Branson who were both voted as the best people to lead UK infrastructure projects, followed by Sir Alan Sugar and Sir James Dyson. A clear indication the industry feels it needs entrepreneurial visionaries to successfully take projects forward to 2021.

In terms of major projects the industry is generally positive about these going ahead with a Conservative government, with HS2 and Heathrow seen as the safest projects followed by Hinkley point, Crossrail 2, Thames Tideway and the road renewal building programme.

However, there is a real concern that major projects will stall if the Conservative government is not re-elected, with a majority of those surveyed believing all projects will stall with HS2 coming out on top (44%) followed by Crossrail 2 (40%) followed by the road renewal building programme (40%), Hinkley Point (30%), Thames Tideway (30%) and Heathrow third runway (26%).

Nathan Garnett, Event Director at Media 10, which runs UKCW, said: “We have seen a great deal of talk around housing and infrastructure in this general election campaign so far, so I think that the main political parties should take note of this industry wide survey. It shows that there are still a lot more assurances and interventions needed to build the homes we need and the infrastructure we have been promised. We will be using these results to make sure the main political parties know what the industry wants, and one clear message is that innovation and entrepreneurial endeavour cannot happen without government assistance.”

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VAT cut would spark building boom

Plaid Cymru’s proposal to cut VAT on home renovations would spark a renaissance in the Welsh construction sector, the Federation of Master Builders (FMB) Cymru has said in response to the Party’s announcement.

Ifan Glyn, Director of FMB Cymru, said “We welcome the announcement that Plaid Cymru would press the UK Government to reduce the amount of VAT currently charged on domestic refurbishment work. The economic benefits of a VAT cut would be significant and timely, given the uncertainty facing the country as it starts the process of departing the EU. Research has demonstrated that cutting VAT on such work would provide an annual £50 million stimulus to the Welsh economy, revitalising a sector that has suffered decidedly mixed fortunes over the last decade. Far from depriving the treasury of revenue, experience from the Isle of Man suggests that the reduction could actually increase net revenues by boosting demand and cutting out the black market.”

“Moreover, it would provide a necessary shot in the arm in the effort to improve the energy efficiency of Welsh homes and help reduce our carbon emissions. Our housing stock is amongst the oldest in Europe, which is a major factor behind the generally poor levels of energy efficiency in our homes. A reduction in VAT would incentivise property owners into investing to improve the energy efficiency of their homes, thereby cutting energy bills. This could play a significant role in tackling fuel poverty, which remains a serious issue for Wales.”

“A tax stimulus could also yield further dividends in the form of empty homes being brought back into the market. There are currently 25,000 properties that are unoccupied in Wales and which could be fully inhabitable again if the incentive to renovate those homes existed. This would be equivalent to nearly two years’ worth of the supply of new homes that it is agreed Wales needs to tackle our housing crisis. Obviously, Plaid Cymru are in no position to win the General Election, but this policy highlights that a VAT reduction on home renovations is both feasible and highly desirable for the Welsh economy.”

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What Corbyn’s leaked draft manifesto says about construction

A few details from a draft version of Labour’s upcoming manifesto have been leaked. What does it say about construction, house building and infrastructure? Buildingspecifier.com investigates:

Energy

The leaked data highlights plans to bring parts of the energy industry into public ownership and introduce a local, socially owned energy firm in every area. Also introduce an “immediate emergency price cap” to make sure dual fuel bills stay below £1,000 a year.

Infrastructure

As well as nationalising the railways, Corbyn proposes to borrow £250bn to invest in infrastructure but stick to the fiscal credibility rule to balance day-to-day spending. He also plans to complete HS2 from London to Birmingham, Leeds, Manchester and Scotland.

Housebuilding

The draft includes a target for tackling the housing shortage, suggesting that we build 100,000 new council houses per year. Additionally, Labour would see the homes of disabled veterans insulated for free.

Skills

In a bid to tackle the skills gap without jeopardising the potential for attracting home-grown talent, the draft manifesto urges us to recognise the benefit that immigrants have brought to our industry but also introduces fair rules and reasonable management. Corbyn promises to work with employers that need to recruit from abroad but emphasises the need to prevent exploitation.

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NHIC issues ‘Five Point Plan’ for Government

The National Home Improvement Council have launched their industry-led manifesto outlining five key areas it feels the next UK Government should focus on alongside negotiating Britain’s departure from the European Union.

The National Home Improvement Council wants all political parties to clearly establish in their manifestos how they would work with industry to overcome some of the fundamental challenges currently faced by the country, including not only the need to build more quality energy efficient homes, but also how to improve the quality of our existing housing stock.

Anna Scothern, Executive Director of the NHIC said ”Great Britain is one of the richest countries in the world, yet 4.5 million families still live in fuel poverty. The National Home Improvement Council believes that no individual or family should have to make ‘heat or eat’ choices each winter.” She added “27% of the UK’s CO2 emissions come from our existing 26 million homes and while demand for housing continues to rise with new house building failing year-on-year to meet the established government target of 1 million new homes by 2020, refurbishment, repair and maintenance must be an essential part of the new Government’s overall housing strategy.”

The National Home Improvement Council, established in 1974, is a member-based organisation whose primary aim is to encourage the safe and efficient refurbishment of the UK’s existing homes across the private and social housing sectors, to improve living standards and reduce fuel poverty. The NHIC uses expertise from across its membership to bring about positive change for UK homes and looks forward to working with the new Government to address these important issues.

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Skills shortages remain key challenge to infrastructure delivery

Construction and infrastructure workload expectations continue to improve with respondents the most positive since the referendum, according to the latest Royal Institution of Chartered Surveyors (RICS) Construction and Infrastructure Market Survey, Q1 2017. The pace of growth has increased across all sectors pointing to a widespread improvement in the sector.

In Q1 2017 27% more respondents reported an increase in workloads, (up from +18% in Q4 2016). Expectations for the next 12 months also remain firmly positive particularly for activity levels although they have reduced slightly in case of profit margins.

The shortage of skilled labour persists in UK infrastructure and construction and is again widely cited by contributors as a factor potentially impacting the performance of businesses working in the industry.

Looking at the different sectors, 34% more respondents cited an increase in private housing output rather than a decrease, which puts it above the other sectors for the pace of growth once again; this has been the case since Q1 2013.

While the commercial sector saw the largest growth in workload for the quarter (compared with Q4 2016) with 31% more respondents seeing a rise, infrastructure workloads continue to grow steadily with the most significant increases in rail, road and energy categories.

These sectors are also viewed as the most promising sectors in infrastructure for the next 12 months. Breaking this down, 60% of respondents felt that repair and maintenance work of existing structures is the most needed type of investment in their area whilst 40% felt investment in new projects was necessary.

Growing skills shortages

As workloads increase, skill shortages are still sighted as a significant problem to the industry with 53% of respondents stating a shortage of skilled labour to be a key impediment to growth.

This is slightly up from 50% in the last quarter. In recent reports, the proportion of respondents noting skill shortages to be the major barrier to growth had come down slightly but the latest results along with surveyors’ comments suggest labour shortage pressure across the UK construction sector is intensifying once more.

Alongside this, 65% of respondents reported insufficient availability of quantity surveyors, with skill shortages in this area becoming increasingly prominent since 2012. The results also point to the quality of available workers (rather than simply the quantity) being the principle driver in skill shortages, with 67% of respondents taking this view.

Looking at this further, 59% of contributors feel that improved education pathways and training would the most effective policy response to alleviate labour supply pressures, whilst 31% of contributors feel direct government subsidisation of training would be the most effective.

Financial constraints and their impact

Meanwhile, financial constraints are still the most significant obstacle to growth with 70% of respondents citing this as an issue. Planning and regulation remains a significant impediment to growth with 61% of respondents citing this as an obstacle (up from 53% in Q4 2016).

At the same time, tender prices are expected rise in the next 12 months. Specifically, 69% more respondents believe tender prices will go up in the building sector (rather than fall). The expected increase in tender prices may signal rising costs and shrinking profit margins which is also reflected in the 12 month expectation of profit margins easing from +26% in Q4 2016 to +18% in Q1 2017.

Regionally all parts of the UK have observed an increase in pace of output growth in Q1, with the exception of Northern Ireland. The was due to the pace of growth slowing within the infrastructure, private industrials and public non-housing sectors. Output growth gathered the most pace in London and the South East where the net balance rose from +7% to +22%.

Jeff Matsu, RICS Senior Economist said “The mood music in the construction sector has improved in line with the better tone to macro data more generally. However the survey does highlight some key challenges that need to be addressed if government’s ambitious plans for housing and infrastructure, in particular, are to be met. Access to finance, alongside planning and skill shortages, both quality and quantity, remain big obstacles to delivery and though some plans are in place to address these issues, it remains to be seen whether they are sufficient to make a meaningful impact.”

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Green Belt and the West Midlands Mayoral Election: what you need to know

The inaugural West Midlands mayoral election will be held Tomorrow to elect the Mayor of the West Midlands. All candidates have discussed building on green belt and brownfield sites in varying levels of detail, so it’s safe to say that Thursday’s result will be of keen interest to industry professionals. Buildingspecifier Editor Joe Bradbury investigates:

Thursday’s election will be the first election for a governing body covering the entire West Midlands since the 1981 West Midlands County Council election (subsequent elections will be held May 2020 and then every four years after that). Following a devolution deal between the UK government and the West Midlands Combined Authority (WMCA), it was agreed to introduce a directly-elected mayor for the combined authority, who would act as chair of the combined authority as well exercise additional powers and functions devolved from central government relating to transport and housing and planning.

Devolving such powers from central government relating to housing and infrastructure in particular naturally raises the ethical dilemma of building on land that is currently protected by Green Belt. This is understandably a strongly debated and highly controversial topic. Many campaign groups urge governments to develop brownfield sites instead, in order to protect England’s characteristic and environmentally significant countryside. However, there is also a very genuine argument that the green belt is an archaic obstacle hindering UK housing and construction in general. Let’s explore the topic:

The argument for…

The British countryside is world renowned and entrenched in our national sense of identity. It is undeniably vital that we continue to protect green space in a country known affectionately as “a green and pleasant land,” however, one cannot ignore the sad fact that the benefits of the Green Belt often accrue to a small group of people at the expense of many more in denser areas.

Studies suggest that access to the Green Belt correlates closely with household income: Green Belt policy preserves large amounts of plentiful green space around the well-off at the expense of rarer green space near the low-income areas of British cities. By limiting supply the policy inflates house prices and rents and acts as a de facto wealth transfer from poorer non-homeowners to middle- and upper-income homeowners.

Only 10% of land in England is developed, just over half of this, 5% of total land, is for homes and gardens, with only 1% of all land actually used for housing. If we were to increase our housing stock by 1.3% per year this would make a massive difference in tackling the housing shortage and would involve building on a mere 0.01% of land each year; a small loss to solve the housing crisis, many argue.

The argument against…

When looking at the argument against developing on Green Belt land, concerns seem to gather around the potential of opening a floodgate whereby once permission is granted, England’s green and pleasant land will descend into a concrete carbuncle.

The Green Belt became government policy 62 years ago this year. On its 60th anniversary, a poll commissioned by the Campaign to Protect Rural England (CPRE) found that nearly two-thirds of people surveyed believed that Green Belt land should not be built on.

The Ipsos MORI poll shows that 64% of people agreed the Green Belt should be protected, while just 17% disagreed. Such strong support for Green Belt is demonstrated across a range of different groups, including people with children aged 5 and under, those renting from a local authority, and those on low incomes. And more than six out of ten people (62%) who live in towns and cities support the protection of the Green Belt – a finding that casts doubt on the claims of critics that Green Belts do not benefit people who live in urban areas.

Mayoral candidate stances

Whatever your thoughts are on Green Belt, we are all in agreement that more homes are needed in Britain today. Perhaps what we really need is tangible, immoveable targets that won’t change the second permission to build in the countryside is given. Just how will your vote affect this? Let’s take a look at the stances taken by some of the candidates reliant on your vote:

Andy Street – Conservatives

Andy Street

From the conservatives, the message seems quite clear – always prioritise brownfield sites when planning where we need to build homes in the West Midlands. Andy’s manifesto promises to spend £200 million on preparation and decontamination of brownfield sites and lobby for more. It also highlights plans to work with all councils to compile registers of all brownfield sites that could be used for housing and business development in the West Midlands.

Andy speaks of pushing Government and councils to release public sector land in the West Midlands, to be used for housing.

Sion Simon – Labour

Sion Simon

Labour Mayoral candidate Sion Simon is more open to the potential to develop Green Belt land for the benefit of the West Midlands. Recently, he has criticised West Midlands borough Solihull for blocking green belt housing schemes and also pointed out that the town is one of the wealthiest parts of the West Midlands.

Last month, Sion called for housing on Solihull green belt during Wednesday’s mayoral hustings, saying “People want new housing but don’t want it on their Green Belt, they want it on someone else’s Green Belt.

“They want the land but don’t want the cost of cleaning up dirty land. We need to start those difficult conversations.

“And the most difficult conversation is with Solihull – which has the great bulk of the wealth and a huge pressure on land and has very expensive land.”

James Burn – Green Party

James Burn

James Burn of the Green Party seems to have a similar message to that of the conservatives, arguing for the prioritisation of building on brownfield land first.
He promises a drive on local authority house building funded by central government, in addition to other measures, including exploring the introduction of a Land Value Tax (which may discourage developers purposefully not building on valuable land and bring more land into use for housing more quickly) and raising the local authority borrowing cap so that councils can borrow more to build more houses.

The manifesto states that “We will need serious discussions about where the houses should be located, the cause and extent of the crisis, where higher density building is appropriate and much more.

“We also need to increase the supply of available land while doing all we can to protect valuable green spaces. We should in general build on brownfield land first wherever possible, and challenge the assumption that this is always more expensive than building on green belt sites.”

In summary

To the casual observer (and fellow Midlander!) it seems to me that all candidates are calling for an honest and open conversation about developing Green Belt land, yet none seem to want to commit entirely to one side of the argument – or at least discuss it on any level that may give too much away on the subject prior to the election tomorrow.

Green Belt divides opinion so drastically across all sectors of our industry. Concerns about it echo through our communities and create barriers as tangible as the physical border itself. Whether you campaign for it to be protected or petition to open it up for development, anybody who builds houses or needs houses should think carefully before entering the polling booth tomorrow, because your vote just might dictate their location.

Do you think we should consider building on Green Belt? Answer the poll on the right!
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Sadiq Khan scraps controversial Garden Bridge

The Mayor of London, Sadiq Khan, has today written to the Chair of the Garden Bridge Trust informing him that the GLA will not be providing Mayoral guarantees for the Garden Bridge project.

In a letter to Lord Mervyn Davies today, the Mayor outlined his view that the continuation of the project will expose the London taxpayer to additional financial risk, both with regard to the bridge’s construction and its operation and maintenance.

Before making the decision, the Mayor analysed the findings of Dame Margaret Hodge’s independent review into the Garden Bridge project, and assessed all the information available about the project to date.

During the Mayoral campaign and since his election last year, the Mayor has repeatedly stated that he would not agree to any more of London taxpayers’ money for which he is responsible being spent on the Garden Bridge project. He had also made clear that he would not provide any Mayoral guarantees unless he was convinced that the project would not lead to additional public expenditure down the line.

In outlining the reasons for the Mayor’s decision not to provide any Mayoral guarantees, today’s letter outlines a number of ways in which the project would expose the London taxpayer to additional financial risk. These include:

  • increasing capital costs of the project;
  • the risk of the bridge only being partially built; and
  • doubts over the establishment of an endowment fund to help meet future maintenance costs.

Mayor of London, Sadiq Khan said “Under the previous Mayor, a considerable amount of London taxpayers’ money has already been spent on the Garden Bridge. I have always been clear that not a penny more of taxpayers’ money should be allocated to the project.

“Having assessed all the information available to me including the findings of Dame Margaret Hodge’s independent review, my view is that providing Mayoral guarantees will expose the London taxpayer to too much additional financial risk.

“With planning permission due to expire this year, many outstanding issues remain, including spiralling construction costs and doubts around funding the maintenance of the bridge.

“The funding gap is now at over £70m and it appears unlikely that the Trust will succeed in raising the private funds required for the project. I am simply not prepared to risk a situation where the taxpayer has to step in and contribute significant additional amounts to ensure the project is completed.”

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