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UK economy grew by more than expected in May, helped by house-building

Over the three months to May, the economy expanded by 0.9%

Britain’s economic output rose by 0.4 per cent in May, a bigger rise than expected and helped by a jump in housing construction, according to official data that will be welcomed by the new government of Prime Minister Keir Starmer.

A Reuters poll of economists had pointed to a 0.2 per cent increase for monthly gross domestic product in May.

The data from the Office for National Statistics revealed a broad-based increase in economic output, with the services, manufacturing and construction industries all growing, the latter up by 1.9 per cent on the month, driven by the housing sector.

Over the three months to May, the economy expanded by 0.9 per cent, the strongest reading since the three months to January 2022, compared with the consensus forecast for a 0.7 per cent expansion.

The Bank of England last month said it expected the economy would grow by 0.5 per cent over the second quarter.

“The economy grew strongly in May, with all the main sectors seeing increases,” ONS Director of Economic Statistics Liz McKeown said. “Many retailers and wholesalers had a good month, with both bouncing back from a weak April.”

Source: Business Times

COMMENT:

Fraser Johns, finance director at Beard, said: “While the three-month picture is a little more shaky, we can be really encouraged by a strong upturn in output in May – especially as it was seen across almost all sectors. Although more recent PMI data shows just how volatile the sector is, the news that both private and public new housing is leading this charge will be welcome to the many that rely on this sector. It is a real example of the resilience we continue to see from firms across UK construction.

“Until we see output and new orders increasing consistently month-on-month, we shouldn’t take anything for granted though. With the election now settled, the hope is we can all pick back up and continue to build momentum during the second half of the year. As we see borrowing conditions improve, with a potential base rate cut in the near future, this will certainly enable more clients to push ahead with plans.

“From our perspective at Beard, the construction sector remains really buoyant with our secured orders at a record high. We continue to prioritise close partnerships with both our clients and our supply chain, as well as a clear focus on both our approach to tendering and our cost plans.”

 

Mayor Tracy Brabin has vowed to deliver a “new dawn” for housebuilding across West Yorkshire, by working in lock-step with local housing providers and the new government in Westminster.

The West Yorkshire Housing Strategy 2040, the first of its kind for the region, has been unveiled on a visit to Saxton Lane in Leeds, where 204 affordable apartments are being developed by WDH.

The strategy identifies untapped potential for new housing across Bradford, Calderdale, Kirklees, Leeds and Wakefield, where over 38,000 new homes could be built on previously developed land.

For the first time, the plans will bring together the five local authorities of West Yorkshire to deliver across four core missions – boosting housing supply, building affordable homes, improving existing homes, and creating vibrant communities.

The strategy aims to build on the progress made since the devolution of the £90 million Brownfield Housing Fund to the region, which has helped to deliver more affordable homes than at any other time since the global financial crash, including 1,500 in the year 2022-2023.

Tracy Brabin, Mayor of West Yorkshire, said:

“Our fifteen year housing strategy gives us the long-term, joined-up approach we need to tackle this intolerable housing crisis, ensuring that everyone has a safe and secure place to call home.

“Growing up in a good quality council flat we didn’t have to worry about unaffordable rent, mould on our walls or the looming threat of a no-fault eviction, and no one else should have to either.

“Housing is a basic human right and the foundation for a good and healthy life. By working in lock-step with the new government and our brilliant local housing partners, we will deliver a new dawn for housebuilding across West Yorkshire.”

The launch of the West Yorkshire Housing Strategy follows a speech made earlier in the week from the new Chancellor of the Exchequer, Rachel Reeves MP, who vowed to “get Britain building again”.

To help deliver 1.5 million new homes by the end of the parliament, the Chancellor and MP for Leeds West and Pudsey has pledged to work closely with Mayors and local leaders, restore housebuilding targets, and reform planning rules whilst bolstering planning teams.

According to the West Yorkshire Combined Authority, there are approximately 85,000 people and families on waiting lists for a council home across the region, with house prices reaching six times the average annual wage, as compared to only three times the average annual wage in 2002.

Private renters have also been hit hard by the “double-whammy” of high inflation and poor conditions, with rents in Leeds, Kirklees and Wakefield rising by around 20% since 2018, and two in five privately rented homes failing to meet the government’s definition of a “decent home”.

To address rising fuel poverty, the Combined Authority and its partners have committed £40 million to modernise social homes with solar panels, heat pumps and better insulated walls and windows. The new housing strategy sets out an ambitious vision to create greener and more secure communities, driving down energy bills across West Yorkshire.

Cllr Denise Jeffery, Leader of Wakefield Council and Chair of the West Yorkshire Combined Authority Place, Regeneration and Housing Committee, said:

“Thousands more families are living in safe, secure and affordable homes because of the decisions of our West Yorkshire Mayor in partnership with local councils. We’ve really made the most of the powers and funding devolved to our region so far.

“But now we need to accelerate this work even more. For too long, strict Government rules over where our brownfield housing fund is spent have blocked our plans. This has limited too much of what we’ve been able to achieve to places where land values are already high.

“With the backing of a new Government, and the promise of greater flexibility in how we can make decisions, we can build 38,000 new homes. That is at the heart of delivering a region which everyone can be proud to call home.”

Andy Wallhead, Chief Executive Officer of WDH and Chair of the West Yorkshire Housing Partnership, said:

“Housing associations are already leading the way on housebuilding in West Yorkshire, with our partnership members collectively providing a fifth of all homes across the region.

“But, by working with the new Government and continuing our close collaboration with the Mayor, we’re determined to do even more and will keep on building to provide the affordable and sustainable homes needed to unlock West Yorkshire’s true potential.”

 

Boost for local economy as London railway arches are transformed into high-specification, modern industrial space

Stephen George + Partners (SGP) is thrilled to announce that completion has been reached on the transformation of six vacant railway arches into high-specification commercial premises for light industrial use, located just 16 minutes away from the City of London. Benefitting from good loading/parking facilities, the design and style of the refurbished arches on Witan Street, Bethnal Green, create an on-brand aesthetic for light industrial use which should prove attractive to potential tenants in the current marketplace.

Josh White, Architectural Technologist at SGP says: “As design architect for the scheme, we have drawn on both our technical expertise and proven track record delivering industrial buildings to create contemporary spaces to suit a variety of industrial occupiers. Part of the development challenge from an architectural perspective has been to maximise the tenantable area and we worked closely with The Arch Company to deliver modern industrial spaces that allow maximum flexibility for future tenant fit-out.”

SGP Studio Director Alan Soper comments: “Urban industrial property can play a vital part in local economies, yet good-sized, modern industrial space close to central London is often difficult to find. That’s why we’re delighted to be working with The Arch Company on the transformation of these arches on Witan Street into vital commercial spaces that will suit a variety of industrial occupiers and support their daily operations in a location close to the heart of one of the busiest cities in the world.”

Following comprehensive surveys of the arch structures and original brickwork, new internal linings and concrete floor slabs have been installed, alongside glazed infills and electric roller shutter doors, LED lighting, 3-phase power and a WC facility in Unit 216a, with capped services for potential kitchen/WC in other units. The design incorporates high-quality materials and restores the appearance to the elevation at this location on Witan Street and further enhances the commercial appeal of the surrounding neighbourhood.

The Witan Street project forms part of Project 1000, The Arch Company’s £200m plan to bring a thousand empty or derelict spaces into use across England and Wales by 2030. It is just one of over ten such projects for which SGP has been commissioned to develop designs. Elsewhere in London, work has commenced on the refurbishment of four disused and dilapidated railway arches on America Street, Southwark, into spaces for restaurants, cafés and bars.

Dave O’Sullivan, Senior Project Manager at The Arch Company, said: “We’ve enjoyed working with SGP on our scheme at Witan Street in Bethnal Green which has transformed six previously empty and derelict arches into a new and improved single multipurpose rental property. Demand for our spaces in Bethnal Green is high and the arches there play host to a range of different businesses, each serving an important role with the local and wider London economy. We look forward to working with SGP on other upcoming projects to create more economic activity in previously unused and underutilised spaces.”

Multi-disciplinary consultancy, Pick Everard, provided structural, civil and building engineering services on the site, working in close collaboration with key partners.

Santosh Patel, Strategic Account Director at Pick Everard, said: “From concept to completion, we were able to advise and coordinate with SGP to allow efficient structural and drainage solutions to be designed. This collaborative approach has delivered exceptional results that utilises the unused archways into modern industrial units, creating spaces that are both functional and versatile. With every inch of space in London highly valuable, the regeneration of the arches grants exciting new opportunities. It’s been a rewarding experience to once again collaborate with SGP and The Arch Company on a development that will support local businesses and enrich the urban area of Bethnal Green.”

Alan Soper concludes: “Like much of our industrial heritage, refurbished and repurposed railway arches present significant opportunities. If refurbished correctly, they create a long-term, sustainable solution to the economic vitality of our towns and cities. Witan Street, with its nearby transport links to central London, is perfectly located for commercial businesses to thrive and it’s incredibly gratifying to have refurbishment work complete and see these arches back in productive use.”

 

European stocks closed lower on Friday as investors digested the Labour Party’s landslide U.K. election victory.

The U.K.’s FTSE 100 index closed 0.45% lower, while the broader pan-European Stoxx 600 index provisionally finished the week 0.22% lower.

The primary news story on investors’ minds Friday was the result of the U.K.’s general election, with the opposition Labour Party winning a huge parliamentary majority, unseating the incumbent Conservatives after 14 years.

The FTSE 350 household goods and home construction index ended the session 2.5% higher on Friday, as traders reacted to news of the Labour Party’s win.

Looking at individual stocks within the sector, Vistry Group, Barratt Developments and Persimmon shares were up around 3%, while Taylor Wimpey rose by more than 2%.

Labour passed the threshold needed to govern alone early on Friday morning, as outgoing PM Rishi Sunak conceded defeat. Keir Starmer, leader of the center-left Labour Party, has now become the country’s new prime minister. Analysts expect the Labour victory to boost U.K. markets over time, particularly when it comes to housebuilding.

In a research note Friday, analysts at RBC Capital Markets said that if Labour’s election pledges turn into policy, it could mark the dawning of a “new age” for U.K. housebuilding.

“Over the last few years housebuilders’ potential has been hamstrung, but over the next few this potential is likely to be unleashed.”

“If the new Government’s walk matches its talk we expect the sector to re-rate, and in the very short term we suspect that the talk alone will be enough to lift share prices,” they added.

 

Source: CNBC

Dry mortar specialist CPI EuroMix is among the headline sponsors of Super Trowel – the annual contest to find the UK’s fastest bricklayer.

Super Trowel is the ultimate bricklaying competition; a trowel-blazing exhibition of speed, skill and professionalism. This year’s contest has seen 12 finalists emerge from two regional heats featuring 30 entrants. The triumphant dozen will take-up trowels for a final showdown at the Marshall Arena, Milton Keynes on August 8th to find an overall winner.

Charlie Collison from Colchester took top prize in last year’s contest. During an outstanding performance he laid an incredible 607 bricks in just 60 minutes. This saw him crowned the UK’s Fastest Bricklayer, earning him £4,500 in prize money.

The 12 finalists in this year’s event are due to visit CPI on July 12th for a tour of its Bilston manufacturing plant.

Stuart Russell, UK Commercial Manager, at CPI Euromix explained why the company was keen to support this standout industry event: “Super Trowel is a lot of fun but it’s also a great showcase for the UK bricklaying industry. Bricklaying is a traditional skill which is crying out for more young people to turn their hands to and help fulfil the country’s building needs. Initiatives such as Super Trowel can assist with that. Hence, this is an event that we are more than happy to support. We thank Super Trowel’s organisers for instigating such initiatives, as they help establish relationships across the building supply chain”.

As well as showcasing the fast and furious skills of the country’s best bricklayers, the Super Trowel final will also host a bustling marketplace featuring more than 60 exhibitors. For visitors, this is an exclusive opportunity to engage with well-known industry brands, and experience masonry-based products and services that are advancing the bricklaying industry.

For more information on Super Trowel 2024, click here

 

voestalpine Metsec has become one of the earliest adopters of the Code for Construction Products Information (CCPI), introduced by the Construction Products Association in response to Dame Judith Hackitt’s review of Building Regulations and Fire Safety, set up following the Grenfell Tower tragedy.

CCPI assessments are undertaken by Assessors from Construction Products Information Ltd. and are carried out on a manufacturer’s specific products and systems, not the company as a whole. As such, an organisation or brand cannot, in itself, gain assessment or make any claims of conformance beyond a specific product set.

To date, voestalpine Metsec has successfully achieved assessment for four of its key construction systems; SFS light gauge galvanized steel structural framing systems and Metframe pre-panelised framing system from its Framing Division, dry lining metal framed components for gypsum plasterboard systems from its Dry Lining Division and roof, side rail and mezzanine floor systems from its Purlins Division.

Alan Harris, Quality and BIM Compliance Director at voestalpine Metsec, states, “Continuous investment in independent performance testing and quality assurance is what keeps our construction solutions at the forefront of the industry.

“Ensuring that the data and information derived from these tests is conveyed in a clear, unambiguous fashion is key to providing specifiers, installers and users with more confidence in the systems’ capabilities and suitability for their projects. Successful assessment to the CCPI confirms we are doing things right and underlines our commitment to the industry’s needs.”

CCPI aims to address the stipulation from Dame Hackitt’s review that construction product information needs to be communicated in a clear and accurate way. Its aim is to help organisations drive for higher standards in the presentation of construction product information, with a priority on building safety.

voestalpine Metsec has set up a rigorous information review process to ensure that messaging from all divisions is based on accurate, verifiable data and that this information is presented in a clear and accessible manner, which can be easily found and assimilated by its intended target audience.


For further information CLICK HERE to visit the website

or here TO EMAIL METSEC

 


 

 

House builder Crest Nicholson has revealed that its remaining building safety work will cost more than £30 million.

The figure was calculated following a reassessment of the company’s completed sites that were in need of remediation work. In March 2024, the house builder reported that the discovery of building safety defects at four sites built before 2019 was expected to cost up to £15 million to remediate.

This has led to the house builder appointing external consultants to reassess the money required to fix building safety defects across the remainder of its sites. As of June, a review of remediation work at 140 sites is expected to leave Crest Nicholson with a bill of £31.4 million.

In its unaudited interim results for the six months ending 30 April 2024, the company explained:

 “As announced in the AGM statement in March, the Group has undertaken a comprehensive review, supported by external consultants, of the Group’s remaining cost obligations on completed sites. Initially work focused on four sites that were completed prior to 2019 when the Group closed its Regeneration division.

“Subsequently, a review has been carried out on all sites that the Group has completed but maintains an obligation to carry out remediation or maintenance prior to adoption by the relevant local authority or management company. The review of completed site costs is now concluded resulting in a one-off charge of £31.4m, of which £25.5m is treated as an exceptional item as it relates to non-standard developments started prior to the change in strategy in 2019 and the balance of £5.9m is recorded within pre-exceptional items.

In January, it is understood that 90 of the company’s buildings were being worked on, with its total provision for building safety standing at £144.8 million. As Construction Enquirer reports, this has now been revised to £145.2 million.

Having signed the government’s developer remediation contract in March 2023, committing it to resolve any historical fire remedial work on buildings completed since 5 April 1992, the company stated it had a dedicated team in place to “manage the remediation programme and to progress work on these buildings to ensure high-quality delivery”.

As reported by Inside Housing, chief executive at Crest Nicholson Peter Truscott said:

The group is now prioritising establishing a comprehensive roadmap to resolve these issues in a timely manner to allow the group to capitalise on its high-quality land portfolio and drive margin improvement in the future.”

 

Source: FPA

Asurco Roofing and Cladding’s glass‐reinforced concrete panels used in The Ribbon create a unique and

welcoming environment amid busy road infrastructure. (Images: Asurco Roofing and Cladding)

 

In the realm of contemporary architecture, innovation is the cornerstone of progress. Structures no longer solely serve utilitarian purposes; they are canvases for artistic expression, statements of engineering prowess and embodiments of sustainable practices. Amid this architectural renaissance, one material stands out for its transformative potential: glass-reinforced concrete (GRC).

The marriage of glass fibres and concrete ushers in a new era of possibilities, redefining the boundaries of construction. Among the myriad of awe-inspiring examples, The Ribbon in Sydney’s Darling Harbour emerges as a beacon of GRC’s spectacular results, showcasing its unparalleled benefits in shaping the skylines of tomorrow.

At the heart of Sydney’s bustling waterfront, The Ribbon, a part of the W Hotel complex, captivates onlookers with its sinuous form and ethereal façade. Rising from the vibrant surroundings like a modernist sculpture, its seamless curves and undulating surfaces command attention. Yet, beyond its aesthetic allure lies a testament to the versatility and durability of GRC.

National Precast Concrete Association Australia (National Precast) Master Precaster member Asurco Roofing and Cladding engineered, manufactured and installed the feature curved wall panels for the project. The panels were strengthened with steel frames to withstand the area’s wind loads.

According to National Precast’s CEO Sarah Bachmann, GRC offers architects a palette of possibilities previously unimaginable with traditional building materials.

“GRC has afforded the architect the flexibility to design intricate shapes and daring designs, which is difficult to achieve in other materials and transcends the limitations of conventional construction methods,” says Bachmann. “Sinuous forms elevate guest arrival experiences by creating a unique and welcoming environment amid a myriad of road infrastructure.”

“We are fortunate to have a company which is able to carry out such intricate work, right here in Australia.”

Hassell’s principal Glenn Scott agrees. “The Ribbon’s sinewy silhouette is a testament to this freedom, as GRC has enabled base building architect Hassell to design fluid forms that reflect the concept of The Ribbon, which is play on the ribbon-like quality of the surrounding expressways,” says Scott.

“The GRC references the ‘concrete infrastructure environment’ but represents it by harnessing the material’s incredible adaptability.”

GRC’s lightweight nature offers a myriad of practical benefits as well, revolutionising the construction process. Unlike its traditional counterparts, GRC significantly reduces the weight of structures without compromising strength or durability. This not only streamlines assembly but also minimises the structural load, resulting in cost savings and environmental efficiencies. The Ribbon’s intricate façade, adorned with GRC panels, exemplifies this lightweight advantage, allowing for swift installation and ensuring structural integrity without excess weight.

In an era defined by environmental consciousness, sustainability takes centre stage in architectural discourse. Here, GRC emerges as a champion of eco-friendly design, embodying the principles of sustainability without sacrificing performance. Composed of recyclable materials and requiring less energy-intensive production processes, GRC minimises the carbon footprint of construction projects. Being fully manufactured by Asurco Roofing and Cladding in Australia, the carbon impact is significantly reduced, as it is not shipped in from overseas.

Furthermore, its longevity and resistance to weathering ensure lasting durability, reducing the need for frequent maintenance and preserving resources in the long run. As The Ribbon stands resilient against the passage of time, it serves as a testament to GRC’s sustainable legacy, inspiring a new generation of eco-conscious architects.

Beyond its aesthetic and practical advantages, GRC holds the power to redefine perceptions of space and light. Its translucent properties allow for the diffusion of natural light. With its GRC façade acting as a canvas for light, dynamic patterns and shadows are cast that animate the surrounding spaces. This interplay of light and material transcends the physical boundaries of architecture, imbuing the structure with a sense of ethereal beauty and serenity.

As The Ribbon in Darling Harbour showcases the transformative potential of GRC, it beckons us to reimagine the possibilities of architecture. In its sinuous curves and luminous façade, we find a synthesis of form, function and sustainability – a vision of the future cast in concrete and glass.

As architects continue to push the boundaries of innovation, glass-reinforced concrete remains an indispensable tool in their arsenal, shaping the skylines of tomorrow with its boundless potential. In embracing this versatile material, we embark on a journey towards a more sustainable, resilient and aesthetically captivating built environment – a testament to the enduring legacy of GRC in the annals of architectural history.

Source: Inside Construction

More than a million homes with planning permission left unbuilt since 2015

The inaugural Planning Portal Market Index has found that more than a million homes granted planning permission since 2015 have not yet been built, equating to around a third of the total given the green light over the period. The figures cast doubt on the near-exclusive focus of the major parties on boosting housebuilding numbers by tweaking the planning system.

At the same time, planning applications over the first five months of 2024 are at the lowest level since 2020, calling into question the scope for housebuilding numbers to recover in the coming years to meet ambitious manifesto targets.

The Planning Portal Market Index report offers the most up to date statistics on planning applications in England and Wales, with data reflecting the state of play as recently as 31 May – two months later than the period covered by the most recent official statistics. The statistics are drawn from planning applications submitted to local authorities in England and Wales – more than 90% of which are made through the Planning Portal.

Had all homes granted planning permission ultimately been built, the government’s target of building 300,000 new homes a year would have been achieved in eight of the last 10 years.

Geoff Keal, CEO at TerraQuest, the operator of Planning Portal, said: “These figures suggest that the near-exclusive focus on the planning system in the political debate around housing is misplaced. Until recently, planning permission was being granted for enough new homes to meet the government’s targets.

“While the planning system is by no means perfect, and those homes granted permission could be in the wrong places, this data strongly suggests that policymakers need to look more widely at the factors stifling the completion of homes for which planning permission has been granted.”

The Planning Portal Market Index report highlighted the impact of high interest rates, skills shortages in the construction industry and materials shortages as possible culprits.

Geoff added: “High interest rates have a double impact on the completion of new homes. By dampening the housing market in the short term, they limit the potential commercial rewards available to housebuilders for proceeding with projects. At the same time, the high cost of borrowing to finance projects in the first place pushes up costs and eats into developer profits.

“This is compounded by the well-publicised challenges facing the construction sector in overcoming skills shortages that have left its headcount more than a quarter of million short of the number needed to meet projected demand. Meanwhile, the supply of fundamental construction supplies of bricks and blocks are down by 4.3% and 9.8% over the year to April, according to official statistics.

“Our analysis shows just how profound the challenges are for policymakers in ensuring enough new homes are built to meet the needs of a growing population.

Rosalind Andrews, Partner, Head of Planning, Highways and Environment at HCR Law, added: “The findings from the Planning Portal Application Index June 2024 report highlight the multifaceted challenges faced by the housebuilding sector. Increasing the delivery of much-needed homes across the UK is incredibly complex, with the number of residential planning permissions granted being only one aspect of the issue.

“Project viability is also a concern, given the increases in material costs and lending rates, as well as the new expenses associated with BNG requirements. Housebuilders are eager to commence construction and break ground.

“To meet the ambitious target of delivering 300,000 homes a year, it is crucial to address the industry’s capacity in terms of skilled labour. With the right support and training initiatives, the housebuilding sector can rise to this challenge and achieve these goals.”

 

  

SFS Group Fastening Technology has introduced a new brochure covering its successful Isoweld® field fixing system, highlighting such benefits as speed of installation and reduced density of fixings, as well as explaining the principles involved in securing single ply membranes, along with the technical back up available.

The eight-page publication, encompassing explanatory photography and technical drawings, conveys how employing the Isoweld® system, as the strapline quotes, “increases efficiency, ensures security, saves on cost.” Basically, it uses induction technology to weld single ply membrane to dedicated stress plates to secure it across the roof deck employing the Isoweld® 3000 machine.  Impressively, the welding process takes just three seconds for each plate and requires around 50% fewer fixings for thermal insulation in comparison with traditional seam fix applications.

As well as avoiding penetrating the tough membranes, opting for the advanced induction welding means fewer overlaps while Isoweld® is particularly strong at resisting wind uplift around the perimeter of roofs, and further facilitates choice of direction across the roofscape. The brochure explains how SFS can offer support at every phase of a project with the highest level of application expertise and commitment. Technical and logistical support ranges from the provision of specification advice to the training of site operatives and site inspections or help with project specific details where required.  The company can additionally arrange equipment rental.

In addition to applications with uniform insulation thicknesses, the SFS Isoweld® systems is also fully suitable for use on projects featuring tapered insulation arrangements: where examples in the publication include using the system on profiled steel decks, or on in-situ and precast concrete decks.

Providing further confidence for specifiers, the brochure states SFS Isoweld® system and products are FM approved (Identification: 3052878) and the products are also assessed and covered by European Technical Assessment ETA 08/0262.  Reassuring testimonials are related in this very accessible publication on a method which has been successfully employed for securing over 20 million square metres of single play membrane worldwide.


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