The Plague of Uncertainty as Construction Downturns

Source: S&P Global PMI. ©2025 S&P Global.

Joe Hayes, Principal Economist at S&P Global Market Intelligence, said:

“Having trended upwards in recent months, our survey data for July signal a fresh setback for the UK construction sector, with total industry activity falling at the sharpest rate since May 2020. Dissecting the latest contraction, we can see a fresh and sharp drop in residential building, as well as an accelerated fall in work carried out on civil engineering projects.

“Forward-looking indicators from the survey imply that UK constructors are preparing for challenging times ahead. They’re buying less materials and reducing the number of workers on the payroll. Expectations also continue to underwhelm, despite a modest pick-up in confidence from June’s two-and-a-half-year low.

“Anecdotally, companies reported a lack of tender opportunities and a hesitancy from customers to commit to projects. Broader themes of uncertainty, both domestically but also internationally, will do little to reignite investment appetites.”

(Further Industry Comments below)

UK construction activity falls at sharpest rate in over five years

July 2025

  • Downturn in construction activity intensifies as firms see renewed decline in housing projects
  • Payrolled staff levels fall again but subcontractor rates continue to rise rapidly
  • Year-ahead expectations remain subdued

There was a considerable slump in the UK construction sector at the start of the third quarter. According to the latest S&P Global PMI® survey data, total industry activity levels fell at the steepest pace since May 2020.

Underlying data highlighted marked decreases in volumes of work carried out across all three monitored sub-sectors, but a considerable drag came from a fresh drop in residential building.

Posting 44.3 in July, down from 48.8 in June, the headline S&P Global UK Construction Purchasing Managers’ Index™ (PMI®) – a seasonally adjusted index tracking changes in total industry activity – signalled the sharpest contraction in over five years at the start of the third quarter.

Where a reduction in activity was reported (around 29% of the survey panel), firms mentioned site delays, lower volumes of incoming new business and weaker customer confidence. Some respondents also cited lower work undertaken on public sector projects. Notably, of the three monitored types of construction work, civil engineering saw the sharpest drop during July. The headline PMI was also pulled lower by a renewed decline in residential building activity. As for commercial construction, a marked but softer fall was registered.

UK constructors remained challenged by subdued demand conditions. The volume of new incoming work declined for a seventh month running in July, with the pace of contraction at its most pronounced since February. A drop in tender opportunities was cited by panelists.

Looking ahead to the next 12 months, surveyed companies were optimistic of growth in activity on balance, but expectations were weak when compared with their long-run trend. This was despite business confidence ticking up slightly from June’s two-and-a-half-year low. Concerns surrounding the broader economic outlook weighed on company growth projections.

The volume of construction materials purchased by surveyed firms subsequently declined in July, although the fall was the softest seen since the start of 2025. When it came to the receipt of purchases, the latest PMI data revealed delays from vendors.

This marked the first time in six months that delivery times have lengthened.

That said, UK constructors reported higher charges from their suppliers at the start of the third quarter. This underpinned a sharp monthly rise in their operating expenses. However, the overall rate of inflation was the weakest since January.

The downward trend in payroll numbers continued into July, extending the current period of falling employment to seven months. Lay-offs, recruitment freezes and the non-replacement of leavers were seen in panellists’ anecdotal replies to the questionnaire.

UK constructors also pared back their usage of subcontractors, but their rates charged nevertheless rose at a sharp pace, in line with the trend seen since late last year.

COMMENTS:

Gareth Belsham, director of Bloom Building Consultancy, commented:

“There’s no sugarcoating it – this data will be tough to swallow for almost everyone in construction.

“All three subsectors of the industry saw output contract in July, with the sharpest fall coming in civil engineering. Housebuilding, the sector beloved of politicians in need of a photo opp, also declined badly.

“To make matters worse, the pipeline of new work is drying up fast. New order numbers have now fallen for seven months in a row, with July’s slump the worst seen since February.

“Little wonder contractor confidence is weak and many construction firms are laying off payrolled staff.

“June saw sentiment plunge to its lowest level since December 2022, and while July’s figure improved marginally, even the most optimistic of builders will find it hard to see the glass as half full.

“Tomorrow the Bank of England is widely expected to cut its base rate for the third time this year, and the prospect of cheaper finance will be welcomed by developers who are struggling to square their finance costs with weak demand for their end product.

“The one bright spot is commercial sector construction. While it too saw output fall in July, at least more commercial schemes are being greenlit. Those that do are laser-focused on value and have a fully costed business case – there is minimal margin for error.”

Lynsay Turnbull, technical director at Thomas & Adamson, part of Egis Group, said:

“It would appear that many of the challenges facing the construction sector have come to a head this month, with PMI figures showing the steepest decline since the height of the pandemic. Ongoing geopolitical and macroeconomic uncertainty continues to weigh heavily, causing project delays and dampening demand and tender activity. That said, we are also in the midst of the summer holiday period, a time when a natural slowdown is to be expected.

“Levels of optimism and confidence among those surveyed have also dipped, which is understandable given the data. However, the end of the summer often brings renewed momentum as teams refocus and drive towards year-end goals. Notably, commercial construction has experienced the softest decline this month, while the residential sector is still awaiting signs of recovery, despite the government’s renewed emphasis to housebuilding.

“While it may take time for these challenges to dissipate and provide momentum to the sector, collaboration and clear communication are essential in the meantime to try and reignite the potential pipeline of future work across each area of construction.”

 

 

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Tariff’s Send US Construction Spending into Decline

 

Construction spending follows a downward trajectory.  Policy uncertainty continues to drag on the construction sector.

  

Construction spending weakened by 0.4% in June and fell 2.9% compared to last year. Through the first half of this year, spending has fallen $22 billion compared to the same period in 2024. (The data is not inflation adjusted.) Input costs for construction have risen 2.4% from a year ago, not including rising labor costs.

Private construction spending, including residential and nonresidential, has declined for 13 straight months. Private residential construction spending fell 0.7% in June due to declining single-family home construction. Multifamily construction was flat. Elevated mortgage rates and weakening household balance sheets are leading prospective home buyers to remain on the sidelines.

Private nonresidential construction spending dropped 0.3% in June. The biggest decline occurred in office construction, which fell 1.4%. The largest increase in spending showed up in transportation, which grew 2.2%.

Data center construction spending continues to reach new records. It is up 330% over the last four years. Power infrastructure spending bounced back in June after a soft May.

Otherwise, construction of manufacturing plants for computer, electronic and electrical equipment declined for the fifth straight month, continuing to slide from mid-2024 highs. These structures include chip and battery plants. The 2022 Inflation Reduction Act and CHIPS and Science Act had driven construction activity in this industry.

Public construction spending edged 0.1% higher in June. Higher state and local spending, where a majority of public spending occurs, was the driver as many states closed out their fiscal years in June. Federal construction spending plunged 4.4% during the month.

Bottom Line

Policy uncertainty continues to drag on the construction sector. Labour concerns are becoming more pronounced and tariffs more onerous.  Semi-finished copper goods joined steel and aluminum with 50% tariffs, while investigations into lumber may introduce higher tariffs in the third quarter. The odds of a Federal Reserve interest rate cut soared with today’s weak jobs report, although this is not a sure thing.

While lower rates would be welcomed by potential home buyers, some on the Fed have expressed concern about lingering inflation. According to surveys by the Federal Reserve Bank of New York and the Institute for Supply Management, firms are already passing along price increases stemming from tariffs.

Source: KPMG

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CANADA: Modular tech reshaping homebuilding

 

Stelumar Advanced Manufacturing Inc. (SAMI) is revolutionizing housing construction with advanced robotics, automation, and modular innovation.

Tackling Canada’s housing crisis with modular construction, sustainability, and more scalable solutions

Over the last few years, homebuyers across Canada have found themselves in the grips of a burgeoning housing crisis; on one hand, housing affordability devolved to new lows, pushing many would-be buyers out of the market to wait for more favorable prices and economic conditions. On the other hand, available housing supply has struggled to keep pace with demand due to mounting development challenges, including market volatility, supply chain disruptions, rising construction costs, and persistent labor shortages.

This dilemma, however, has proven to be more complicated and nuanced than a simple supply and demand mismatch. To this effect, a recent influx of condo supply flooding the market illustrated a stark reality: today’s buyers don’t just want any housing, and certainly not at today’s prices. Instead, most would-be buyers appear content to wait for more significant price corrections to materialize, or they are solely interested in properties designed more for long-term living than speculative investing or short-term turnover. In other words, they’re looking for a home to live in, not a unit to rent out or flip. This situation is currently worsening across Toronto, as new home sales are expected to reach their lowest level in decades with single-family sales down over 50% and condo apartment sales down nearly 65% year-over-year (YoY). At the same time, similar challenges are being felt in other major cities across Canada, including Vancouver, Montreal, and Calgary.

Against this backdrop, the need for new housing supply remains urgent – but the solution must be bold, strategic, and perhaps more than anything, more scalable than what has been developed in the past. In the latest episode of our CRE Innovation Series, Peter Hass, General Manager at Stelumar Advanced Manufacturing Inc. (SAMI), sat down with Ray Wong, Vice President of Data Solutions at Altus Group, to discuss SAMI’s technology-driven approach to modular housing development, which promises faster residential development timelines, reduced costs, and enhanced sustainability.

 

Leveraging new technology to usher in a new era of housing

At a time when housing crises demand smarter builds and shorter development timelines, SAMI is stepping up with a factory-driven process that cuts the construction timeline for six-story condo buildings from the traditional three years to just six months. According to Hass, the secret to SAMI’s success lies in its ability to rethink the construction timeline entirely. Unlike conventional builds, SAMI’s process runs multiple workflows in parallel, manufacturing modules while the foundation is being poured and permitting are still in progress.

“Think of the modules as Lego blocks,” Hass explains. “We’re manufacturing these components in a highly controlled factory setting, which allows us to stitch them together quickly and efficiently on-site.” This parallel production model not only accelerates timelines but also minimizes the disruptions and inefficiencies often caused by weather, labor shortages, and site-specific constraints. It’s a model that reflects a broader shift in how the industry approaches construction – one that prioritizes precision, predictability, and scale.

“Historically, modular housing and prefab have been around, but the technology has completely changed over the last 20 years,” Hass shares. “Everything we do is designed in 3D, which allows us to take Revit models and automatically transition them into machine-readable drawings. This eliminates the need for manual conversions, saving time, reducing costs, and ensuring precision.” What’s more, SAMI provides a “box of rules” for customization, ensuring that every unit fits within production parameters while still offering buyers a range of design choices. “Within the units themselves, developers can offer ‘good, better, best’ finishing options, giving buyers flexibility without compromising efficiency,” he adds.

The strategic integration of advanced robotics and automation is another game-changing element. By manufacturing prefabricated walls and floors in a controlled environment, SAMI will ensure that every nail, screw, and component is placed with exact precision. The result? Homes that would typically take six weeks to frame on-site can now be framed in a single day. “By bringing automation into the process, we’re able to operate at a level of efficiency that wasn’t possible even a decade ago,” Hass concludes.

To this effect, SAMI is dedicated to creating buildings that function as “sustainable ecosystems,” with a strong emphasis on reducing embodied carbon. By leveraging sustainably sourced wood and engineered lumber, SAMI aims to significantly lower the environmental impact of its projects while advancing its commitment to sustainability. “Not only does wood store carbon naturally, but when combined with engineered lumber and advanced automation, we can use less material, reduce thermal bridging, and create better-performing walls,” Hass adds. “This is a game-changer for both construction efficiency and environmental impact. It’s about building smarter, not just faster.” As an added benefit, wood is renewable, recyclable, and far less energy-intensive to produce than steel or concrete.

SAMI’s factory-driven approach will significantly minimize waste by ensuring that every piece of material is cut and used with precision. Unlike traditional on-site construction, where material waste can reach up to 30%, SAMI’s controlled environment will allow for near-zero waste. “In our factories, every piece of wood, every screw, and every panel is accounted for. There’s no guesswork — everything is optimized for efficiency and sustainability,” Hass explains. In this way, SAMI is building homes that are not only better for people, but also better for the planet.

 

Solving the housing crisis at scale

SAMI’s vision goes beyond just speeding up timelines and hitting sustainability targets – it sets out to address Canada’s housing crisis at an unprecedented scale. Backed by Mattamy Asset Management, the parent company of Mattamy Homes, SAMI is uniquely positioned to deliver thousands of homes annually. Its upcoming facility in Toronto, set to launch in 2026, is expected to be the most advanced, automated, and data-driven manufacturing hub of its kind in North America.

“This is going to be their global flagship factory,” Hass revealed, referring to SAMI’s collaboration with one of the world’s leading equipment manufacturers. “We’re taking a big swing at this. Our goal is to be the industry leader and to deliver housing solutions at a scale that Canada has never seen before.”

Unlike traditional modular housing companies, SAMI works independently of its investors, enabling it to partner with a wide range of developers and scale production smoothly. This independence is critical, as it allows SAMI to adapt to the unique needs of different developers, projects, and communities while maintaining operational efficiency.

“Every developer works at a different pace and has unique needs,” Hass notes. “But as a factory, we need to maintain a smooth and consistent production flow. By working with a diverse range of developers, we can ensure that our factory operates efficiently while meeting the demand for housing across the region.”

 

SAMI’s vision for the future

Complex problems often require bold solutions, and Canada’s housing crisis is certainly no exception. By leveraging advanced technology, reducing environmental impact, and dramatically shortening construction timelines, SAMI’s “smarter, faster, and greener” approach to modular construction has the potential to fundamentally reshape the future of housing in Canada.

“Canada needs to accelerate the construction of new homes, especially affordable ones. Companies like SAMI are showing us how it can be done,” adds Wong, noting that the traditional methods of construction are no longer sufficient to meet the challenges of today. “We can’t keep solving 21st-century housing problems with 20th-century solutions,” Wong added. “The future belongs to builders who think differently, and SAMI is at the forefront of that shift.”

 

Building for people and the planet

Sustainability remains a key development consideration and priority, but achieving sustainable builds at scale has been, historically, difficult. But in today’s climate, ESG isn’t just a buzzword – it’s a mandate. “For developers, it’s about meeting regulations, but it’s also about staying competitive in a market where tenants, buyers, and investors are demanding greener solutions,” Hass explains. “Our process allows them to meet these goals without sacrificing quality, customization, or cost-efficiency.”

 

Source: Altus Group

 

https://www.altusgroup.com/insights/how-modular-tech-is-reshaping-the-future-of-homebuilding/?utm_source=google&utm_medium=organic

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New Building Safety Levy, Construction Must Act

The construction industry is being urged take action ahead of the implementation of a new building safety levy, which will introduce new costs for residential developments across England from October 2026.

The new levy will apply to all new residential developments that require building control approval, regardless of height, as part of the government’s continued response to the Grenfell Tower tragedy.

The levy, for which developers will be liable, is intended to help fund remediation works to existing residential buildings where safety defects have been identified. The government says the charges will also encourage developers to prioritise safety from the outset of the building process before construction begins. Local authorities will be tasked with collecting the levy on behalf of central government.

The tax was originally due to come into force this autumn, but the government says the targeted implementation date of October 2026 will give the industry and local authorities more time to adjust to the new charges and related requirements.

After a consultation on detailed proposals for the calculation and collection of the levy, in March this year the government confirmed the levy will be charged at the point at which an application is submitted for building regulations approval. It will be charged on a per square metre basis, calculated against a formula using data on average house prices.

The government also clarified that different geographic levy rates would be applied based on local authority boundaries. A 50% levy rate will be applied to developments built on brownfield sites – areas of previously developed land.

There are currently some exemptions to the levy charge, including social and supported housing; hospitals; hotels; care homes; school accommodation; temporary accommodation for homeless people; domestic abuse refuges; and sites of fewer than 10 dwellings.

For developers, payment of the levy ultimately hinges on whether the development can be classified as a “major residential development” in planning terms. If the application for building control approval contains fewer than 10 dwellings or 30 bedspaces, but the planning permission or planning application is for a major residential development, then the application or notice will still incur a levy charge.

The government published detailed guidance and a list of different rates and exemptions earlier this month together with the draft regulations.

The levy will be reviewed every three years and will require local authorities to return both revenue and management information to central government on a quarterly basis.

The new proposed charges have attracted considerable criticism over concerns the levy could hamper new development, particularly new housing. In March, the Home Builders Federation (HBF) highlighted its concerns over the potential impact the levy would have on housing delivery in England. Although the government expects the new tax to raise £3.4 billion, the HBF said the levy would “severely hamper” the industry’s capacity to meet the government’s target of delivering 1.5 million new homes and would prove both costly and burdensome for small and medium-sized homebuilders.

However, it is worth noting that the levy does not apply to existing applications for dwellings or purpose-built student accommodation submitted before 1 October 2026. This includes developments that have either submitted a full plans application, an initial notice or a Gateway 2 application, which is imposed when a developer applies for building control approval to start construction on a higher-risk building (HRB).

Dr Sue Chadwick, a built environment specialist at Pinsent Masons, said developers should be mindful of the implementation date and act now.

“The timing of the charge is particularly problematic due to the delays currently being experienced by the industry at Gateway 2,” she said. “Developers will need to pay the levy as well as funding significant upfront design costs but then face a lengthy delay before construction can start. This will only increase financial pressure on developers.”

There are plans to introduce a similar building safety levy in Scotland. Under the current proposals, the levy would apply to all new residential development in Scotland, including build to rent and purpose-built student accommodation, but will exclude affordable housing. It is expected be operational in 2027.

Source: Pinsent Masons

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Modular Homes for Australia’s Sunshine Coast

Oly Homes can build homes quickly for those who need them

A Sunshine Coast modular homes builder is set to almost triple its output via a new $20 million facility.

Oly Homes’ expansion is expected to help the company respond to soaring demand for faster, more accessible housing solutions.

The 21,900sqm factory, largely supported with funding from Commonwealth Bank of Australia, will be built on a double site at Sunshine Coast Industrial Park at Corbould Park.

Construction is expected to start this year, and the facility should be completed in the second half of next year. It should allow Oly Homes to increase its output from about 200 to 550 homes per year and create 70 jobs.

Managing director Dale Funston said prefabrication offered clear benefits.

“Factory production means we don’t lose build days to weather,” he said.

“We have all trades on hand every day so there’s no time lost to scheduling, and we can run multiple projects concurrently.

“But the number of customers knocking on our door is outpacing what we can deliver, so it’s time to expand.”

Oly Homes currently operates out of Yandina, with a second yard at Cooroy, but once the new facility is built at Corbould Park the company will consolidate there.

“Oly Homes has spent years refining the modular process to build faster, smarter and with less waste, but demand is now outpacing what we can deliver,” he said.

“With the new factory, we’re scaling up to meet demand and deliver more high-quality homes to Australians who need them: it’s great for home buyers.

“We’re currently booked out more than six months in advance. The growth the new facility will provide can’t come soon enough.”

CBA Business Banking group executive Mike Vacy-Lyle said the partnership would help tackle Australia’s housing shortage.

“Oly Homes can build and install a two-bedroom, two-bathroom house in just nine weeks,” he said.

“We’re proud to support Oly Homes to scale up and deliver much-needed housing.

“Imagine what could be achieved if this innovative housing model was more widely adopted.”

The new facility will form part of a broader effort by CommBank to help scale up Australia’s prefab housing industry, including the launch of its new list of CommBank Assessed Manufacturers, which is aimed at making it easier for customers to secure finance during the offsite construction phase.

Oly Homes is among the first builders on the list, which opens the door for customers to access progress payments of up to 80 per cent of the contract price or 150 per cent of land value before the home is installed onsite.

CBA Home Buying executive general manage Marcos Meneguzzo said the new lending policy would give customers more flexibility and financial access.

“We believe this change will open the door for more people to explore prefabricated construction as a faster, more accessible path to homeownership,” he said.

 

Source: Sunshine Coast News

 

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BCF: Victory for Common Sense

BCF Issues Statement on EU TiO2 Court Case: ‘Victory for Common Sense’

 

The European Court of Justice (ECJ) has today dismissed an appeal from the European Commission and France against its 2022 ruling on Titanium Dioxide (TiO2).

 

The 2022 ruling from the ECJ sided with the case brought by the Titanium Dioxide Manufacturers’ Association (TDMA) – with BCF, CEPE and the American Coatings Association acting as interveners on behalf of the coatings industry – and annulled the original classification of TiO2 as carcinogenic category 2 by inhalation. TiO2 is a unique and essential raw material for the manufacture of paints, medicinal products, foodstuffs and toys, among other products.

 

This has been a battle that the industry has been fighting as a priority since March 2015, when the French authorities first tabled their concerns that TiO2 was a carcinogenic substance.

 

Responding to the decision of the European Court of Justice, Tom Bowtell, CEO of BCF, said:

 

“This is excellent news and vindicates the decision of BCF, CEPE and the American Coatings Association to support the TiO2 industry in opposing the original classification, which, in industry’s view, was not based on sound science. The ECJ upholding its initial ruling will be of practical benefit to members in the coatings industry. We are therefore delighted with the outcome and hope it brings the matter to an end, giving companies certainty about a key raw material for the sector.

 

It is also worth stating that this is an important outcome in terms of precedent. If the TiO2 decision and methodology used for the decision were extrapolated, other substances may have also been treated the same way.

 

So, a good win for a united industry all working together.”

 

To read the ECJ ruling in full, visit: https://curia.europa.eu/jcms/upload/docs/application/pdf/2025-08/cp250099en.pdf

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Scotland Heat Networks Prospectus

Power supports launch of first South of Scotland Heat Networks Prospectus

 

Leading renewable energy consultancy Natural Power, has completed the research, analysis and interpretation that underpins the first South of Scotland Heat Network prospectus that has been launched today by South of Scotland Enterprise.

 

The document, created jointly by South of Scotland Enterprise (SOSE) and Dumfries & Galloway and Scottish Borders councils, identifies a total of 19 heat network opportunities across the region and highlights a series of significant economic, environmental and social benefits these networks could deliver.

Steve Smith, Principal Renewable Heat Engineer at Natural Power, said:

“The launch of the prospectus is a real milestone on the region’s journey toward a more sustainable and resilient future. Heat networks offer a significant opportunity to decarbonise heating, reduce carbon emissions, tackle fuel poverty, and create new jobs and skills. We’re proud to have played our part in the delivery of this project and look forward to seeing the vision being brought to fruition.”

 

The 19 potential heat networks identified would distribute thermal energy from a central source to multiple properties – covering more than 2,400 domestic and non-domestic properties in the South of Scotland, which in total would provide up to 120,000 megawatt hours of heat per year.

The estimated capital cost of creating these networks would be approximately £120 million, but if established, these networks would provide several key benefits, including new jobs and skills and retention of wealth in the region, alongside tackling fuel poverty and boosting the South’s contribution to Scotland’s decarbonisation targets.

There are two types of heat networks – larger district heat networks, which tend to operate in town centres or industrial areas, and shared heat collector-style networks, which can operate across a variety of scales, from a whole neighbourhood down to a row of cottages. The prospectus has identified seven district heat network opportunities in larger towns and 12 shared heat collector network opportunities.

District heat network opportunities include seven locations in Dumfries, Stranraer, Darnick/Melrose, Galashiels, Peebles and Hawick. Shared heat collector network opportunities include 12 locations in Crossmichael, Smailholm, Swinton, Langholm, Gretna, Tweedbank, Kelloholm, Selkirk, Annan and Lockerbie.

It is now hoped that the prospectus can inspire practical action and investment in pilot projects and larger projects, building momentum for the sector in the region.

 

SOSE Chair, Russel Griggs OBE, said:

“This prospectus highlights the massive potential for heat networks in the South of Scotland, providing heat for low cost and lower impact on the environment.
“Alongside our partners in both local councils, we want the South of Scotland to be leading the way in developing smaller shared heat collector style networks and believe this prospectus can inspire practical action and investment in pilot projects.

“This prospectus lays the groundwork for meaningful investment and action, and we look forward to seeing these opportunities develop into real-world projects that support our region’s transition to net zero.”

Cabinet Secretary for Housing, Màiri McAllan, added:

“Heat networks have a major role to play in Scotland’s heat transition – helping us to deliver our twin aims of cutting carbon emissions whilst also delivering affordable heat and reducing fuel poverty – and later this year we will set out measures to attract further investment by encouraging non-domestic and especially public buildings to connect to these schemes.

“We are working closely with local and regional bodies to realise the full potential of heat networks and I welcome the leadership of South of Scotland Enterprise and its partners in producing this prospectus, which will be a valuable addition to our resources and knowledge base.”

A series of events and webinars will take place to provide more information about this exciting opportunity for the sector.

Find out more here: www.southofscotlandenterprise.com/news/heat-networks-prospectus

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Action Plan to Reduce Planning Backlog

   

Somerset Council launches 12-week action plan to reduce planning application backlog and improve response times for residents and developers.

 

Somerset Council is changing the way its Development Management service works to deliver improvements. In the short term, this means that the Council is seeking to free up case officer time to reduce the current high volume of work-in-progress. 

Over the past few years, the volume of planning applications received by the Council has increased significantly and the current workload remains high. This has resulted in delays in the determination of planning applications. The Council would like to apologise for any inconvenience caused as a result and are taking a range of actions to reduce the backlog which has been created.

From Monday 28 July, the Council will launch a 12-week period of specific critical action focused on reducing this backlog which will have an impact on the level of service delivered. This is necessary to make future service delivery better.

Measures introduced during this 12-week period will include:

  • Asking customers, Members and applicants not to chase for updates to allow the time created to focus on decision making. Application progress can continue to be tracked online.
  • Planning officers reducing attendance at events or meetings that don’t support the objective of reducing the backlog.
  • Only accepting amendments to applications in limited circumstances.
  • Only undertaking essential site visits.
  • With a high volume of applications failing validation, applicants will only be given one chance post submission to provide the required information within 14 days. Full pre-application guidance remains available on our website and this needs to be followed.
  • Strict adherence to the call-in criteria (when applications are brought in for committee discussion) as set out in the constitution.
  • A new triage approach being introduced when applications are first received to speed up decision making.
  • Planning teams having “all in” office-based days to support the above.

Teams will review progress after 12 weeks to determine the next steps or if any of these measures need to remain in place.

The Council is aware that these measures are not ideal, but it is taking critical action now to tackle the immediate issues. This will allow the council to put longer-term plans in place.

The backlog has been caused by a number of issues including difficulties in recruitment and staff retention due to the current challenges; ways of working (there are currently multiple ICT systems in planning following unitarisation – a solution to this is being investigated); and complexity, as there is rarely a simple answer to questions in planning.

The public website will shortly be updated to reflect these temporary changes.

Cllr Mike Rigby, Portfolio Holder for Economic Development, Planning and Transportation said:

This is an incredibly complex problem to solve, and we recognise that this critical action will impact on our residents. But it is necessary to bring work in progress down to a more manageable and sustainable standard and to make Somerset’s planning service a great place to work for current colleagues and prospective employees, and, most importantly, to improve our offer to our communities.  

These actions are aimed at improving our reputation with service users in the future and we ask for patience while we put these measures in place. It is a critical phase of a much wider programme of work to drive positive change in our service.

This wider programme of improvement work in the Planning service will be taking place through 2025 and 2026 and be ongoing.

The aims of this wider programme of improvement include:

  • Building better and more productive working relationships with agents and applicants’ planning applications to Somerset Council.
  • To build a consistent, effective operational management approach to enable all parts of the service to communicate effectively and using automation wherever possible to drive efficiency.
  • To deliver good quality and faster service for customers.
  • To create a more professionally rewarding, attractive place to work for planning staff to tackle issues around recruitment and retention. 
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DECISIVE REFORMS NEEDED TO RESTORE HOUSING CONFIDENCE

Rachel Reeves is being urged to introduce “radical and credible” reforms for the UK housing market in her Budget this autumn, or risk continued stagnation.

In an open letter to the chancellor, property financier Daniel Austin, CEO and co-founder at ASK Partners, outlines a series of recommendations to boost the market and tackle the ongoing shortage of homes.

Austin writes: “The housing market has been stagnant for much of this year, with developers, investors, and consumers adopting a cautious ‘wait and see’ approach. This uncertainty is exacerbated by piecemeal policy signals without clarity, risking further paralysis over the coming months.”

He continues:

“Your commitment to 300,000 homes per year is welcome, but insufficient. This target has existed since 2004 and has never been met. Capital Economics estimates we now need at least 385,000 new homes annually. Since 1970, France has built nearly twice as many homes as the UK despite similar population growth.”

Austin calls for the government to empower SME housebuilders, reform the planning system, boost construction skills, prioritise social housing delivery, incentivise brownfield development, and attract greater investment.

“Planning delays remain the number one barrier for investors and developers, creating uncertainty and inflating costs,” he writes. “The system is paralysed by political conflicts of interest, with councils deterred from being pro-development. We propose independent decision-making to remove these conflicts, alongside greater private sector involvement to clear backlogs swiftly.”

Austin also warns of labour shortages and skills gaps, stating: “Post-Brexit labour shortages continue to hamper the sector, with small contractor teams unable to meet demand efficiently. Policies to drive off-site construction would boost productivity, attract younger and more diverse talent, and reduce build times and costs.”

Austin emphasises the need for prioritising social housing and simplifying compulsory purchase order processes, arguing that “the net loss of 200,000 social homes over the past decade has deepened the crisis. Councils need genuine powers and incentives to deliver social housing at scale.”

On investment, the letter notes that “91% of private investors are keeping their real estate allocations over the next 12 months”. Austin adds:

“If supported by clear, investor-friendly policies, this capital could be channelled efficiently towards development and infrastructure expansion.”

The letter concludes with a warning that “delaying clarity risks prolonging stagnation”.

Austin writes:

“We urge you to deliver decisive reforms and targeted stimulus to restore confidence, unlock supply, and drive the economic growth the UK urgently needs. Investors, developers, and communities stand ready to support this agenda if you provide the framework for them to do so.”

Source: Property Industry Eye

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Age Old Building Material Set to Make a Comeback

IMAGE: Fox Eco Architects

 

Cob can be “a mainstream building material once again” say Cella

 

It’s time for the construction industry to bring back cob, but innovation is needed to solidify the age-old material’s place back within our toolkits, design collective Cella tell Dezeen in this Building with Cob interview.

“Cob is a low-carbon material for an alternative circular construction economy, made from clay, water, fibrous material and aggregates,” Cella member Alys Hargreaves told Dezeen.

“Building with it is an alternative to harmful industry practices that are exacerbating the climate crisis,” she continued.

“The means to bring about this revival are complex, and therefore, the area is ripe for innovation and full of potential. People should pay attention.”

Cob has been used by humans to build around the world for millennia. It was particularly common in south-west England before the Industrial Revolution, when it slipped out of use in favour of fired brick.

However, today, a small group of architects, designers and researchers are turning their focus back to cob, championing it as a material ideally suited to contemporary construction.

Among them is Cella, a collective of eight designer-makers with a focus on space, earthen materials and ecology, including Hargreaves, Millicent Green and Felix Sagar, who specialise in cob.

Environmental concerns strengthen case for cob revival

As Hargreaves explained, cob is a type of unfired earth-based construction material made from clay-rich subsoil, mixed with fibrous material such as straw and water. Sand or aggregate can also be added for greater compressive strength.

Its organic composition means it is inherently low-carbon, non-toxic and ubiquitous, as well as compostable and reusable.

Cob is also celebrated for its thermal mass and moisture-regulating properties – a quality many conventional construction materials, including fired brick, do not offer.

According to Cella, growing awareness of the built environment’s carbon footprint, which accounts for approximately 40 per cent of global carbon emissions, has sparked renewed interest in cob.

“Having uncovered issues with carbon in production and transportation, and issues with the circularity of fired materials, there is now a good argument for a revival in the use of unfired earth,” said Hargreaves.

“Revisiting cob and mass-earth construction more broadly offers a localised low-carbon material for new-build architecture, from housing to community spaces.”

Waste earth from construction is an ideal ingredient

Cella argue that one of the best reasons to use cob today is that it can be made with waste subsoil from construction sites. In the UK, as in most other countries, this is abundant and typically dumped in landfill.

“Waste earth is excavated at scale daily across UK construction and infrastructure projects,” said Hargreaves.

“This is a free, accessible waste stream of one of the key ingredients of cob and earth construction, which would otherwise be going to landfill.”

Cella recently explored the use of waste earth in construction in a series of workshops for young people in London.

Among them was Conversations in Cob – a two-week collaborative build project in which participants used waste clay extracted from a construction site at Abney Park in Hackney to create what the group called “Hackney Cob”.

However, Hargreaves, Green and Sagar admit there is still much work to be done to facilitate the reintroduction of cob into architects’ toolkits.

Traditional cob construction can be slow and labour-intensive, typically built up in layers without formwork and requiring long periods of drying time. Contemporary building standards relating to U-values and load-bearing capacity are also challenges for cob in its traditional form.

But the group praised stand-out innovations with the material that are emerging and overcoming these barriers, “bringing the material up to speed with contemporary construction techniques”.

Among them is CobBauge, a system comprising two conjoined cob walls with different makeups to meet both modern U-value and structural regulations, while ensuring quicker construction times.

Cella also cited the work of researcher Tavs Jorgensen, who is developing unfired cob bricks to make the material more accessible.

“As a wall system, CobBauge is a fully structural and insulating mass-earth wall which could replace many alternative wall systems and therefore also be appropriate to any number of varied typologies,” said Cella member Sagar.

“Ready-to-use cob systems help to standardise and democratise the technique to encourage the adoption of the material more widely.”

“The landscape is telling you how to build”

Yet Sagar believes there is still much work to be done to help cob compete with mainstream building materials and “make a case for itself within the modern context”.

“Cob could and should become a mainstream building material once again,” said Sagar.

“However, there is much to be done,” he added. “We will need these innovations, and many more.”

“Ideally, the world would slow down, and cob as a slow, meditative, community-driven construction method would return, but in the meantime, it might be more effective to make innovations in the technique which make it more efficient, accessible and widely adopted.”

While encouraging innovation, Cella also highlighted the importance of viewing cob as a part of the construction toolkit, rather than a silver bullet.

Cella member Green explained that in doing so, using cob can help the industry relearn to build more harmoniously with the environment once again.

“Rather than applying cob as a universal technique, the conversation should be about reconnecting with our local landscapes through the materials they offer, and allowing each region to express its own identity through how it builds,” concluded Green.

“In that way, the landscape is telling you how to build, instead of imposing a building material on the land,” she explained. “It’s about letting our geology dictate how we build.”

By Lizzie Crook

Source: Dezeen

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