Green Investing

As investors in the housebuilding and construction sectors, we are seeing a sea change in the urgency of tackling the carbon footprint in housing. Recent site visits to housebuilders Vistry and MJ Gleeson confirmed this is now translating to real changes on the ground, with newly specified innovations in technologies such as heat pump boilers and electric vehicle (EV) chargers set to become mainstream.

These changes are being driven by the government’s Future Homes standards, which will ensure all new homes built from 2025 will produce 75-80% less carbon emissions than those delivered under current regulations, with no new home built under the standards to be reliant on fossil fuels. There will be an emphasis on improved ventilation and reduced energy usage.

Prior to this, from June 2022, we will see new building regulations that target an initial 30% carbon reduction.

Under construction

According to Statista, residential housing accounts for around 15% of all UK greenhouse gas emissions. Engineering firm Arup, in conjunction with the Royal Institution of Chartered Surveyors, has calculated that more than 50% of the whole-life carbon emitted by a house occurs during the construction phase. This means the construction of new homes is of critical importance in limiting the environmental damage done by housing in the longer term.

By far the greatest challenge facing housebuilders trying to reduce their carbon footprint is the slow pace of change in the supply base. The infographic below analyses the carbon footprint of a typical new family home. It is worth noting how little is directly under the house builder’s control, with just 7% of the total emissions coming at a scope 1 or 2 level.

The dominant source of emissions comes from materials such as cement, bricks and tiling used in the construction of walls, roofs and foundations. The solutions to decarbonising such products are both complex and costly and remain several years away. Significant changes in the sourcing of energy supplies, in particular, present major challenges.

While there are government incentives to increase usage of materials such as timber, this remains a niche segment in the UK housing mix, despite strong take-up in regions such as North America.

As with the demand for EVs, it is important to put the demand for new housing into context. Office for National Statistics data tells us there are around 28 million households in the UK, and this number has been growing at just under 1% per annum in recent years. The current level of new housing completions runs at around 250,000 per year, less than 1ͮ of the entire housing stock. This highlights the magnitude of the task in turning our homes green, both in terms of the technical and logistical challenges of retrofit and the significant costs for homeowners to do so.

 

The carbon footprint of a typical new family home

Investing in construction

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Current estimates for installing heat pump systems and EV chargers are in the region of £5,000-7,000 per home, which is a big pill for the average householder to swallow. While these costs will inevitably fall as production volumes increase, it does suggest we will need to see significant government intervention and subsidy for the 99% of the housing stock that is not new.

We know there is strong ongoing political support and funding for social housing, as the UK continues to face both housing shortages and affordability issues. At Amati, we are already investing in the theme of social housing, which will have the dual benefit of addressing net-zero targets while hopefully reducing the inequalities in housing. Our holdings in Vistry and MJ Gleeson play directly to such trends. For the homeowner looking to reduce their carbon footprint the message is clear. Be prepared to invest significantly in retrofitting your existing home or buy new and have it done for you.

 

Source: What Investment

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£5 billion to address the building safety scandal

Yesterday (April 13th) the government revealed a wide-ranging agreement that will see industry contribute £5 billion to address the building safety scandal.

In a victory for leaseholders, Levelling Up Secretary Michael Gove has agreed a solution with the housing industry that will see developers commit a minimum of £2 billion to fix their own buildings. Industry will also pay up to a further £3 billion through an expansion to the Building Safety Levy.

Under the new agreement, which will become legally enforceable, over 35 of the UK’s biggest homebuilders have pledged to fix all buildings 11 metres+ that they have played a role in developing in the last 30 years.

For the companies yet to make the pledge, the Secretary of State has also confirmed there is little time left for them to sign up, and that those who continue to refuse will face consequences if they fail to do so.

As set out in January, a new government scheme will also see industry pay to fix buildings where those responsible cannot be identified or forced to in law. This follows previous confirmation that plans for a 30-year loan scheme paid for by leaseholders would be scrapped.

The new scheme will be funded through an extension to the Building Safety Levy that will be chargeable on all new residential buildings in England. This is expected to raise up to an additional estimated £3 billion over ten years from developers and ensure no leaseholder in medium-rise buildings faces crippling bills, even when their developer cannot be traced.

New proposed laws, announced in February under the Building Safety Bill, will ensure qualifying leaseholders are protected from the costs of historical building safety defects, including total protection against cladding costs. Today’s deal establishes that the industry responsible – not innocent leaseholders – will pay.

Levelling Up Secretary Michael Gove said:

Today marks a significant step towards protecting innocent leaseholders and ensuring those responsible pay to solve the crisis they helped to cause.

I welcome the move by many of the largest developers to do the right thing.

But this is just the beginning. We will do whatever it takes to hold industry to account, and under our new measures there will be nowhere to hide.

The pledge published by government today commits developers who have signed up to legally binding contracts, and to implement their promises as soon as possible.

The detailed agreement confirms developers will:

  • Act as quickly as possible to fix buildings
  • Implement new proportionate guidance on building safety
  • Regularly report to leaseholders and government on their progress
  • Respect an independent dispute resolution process established by government; and
  • Refund money already received from the taxpayer to fix their buildings.

More information on how government plans to enforce the agreement in law will be released in due course.

The government is introducing new powers that could be enforced on a developer should they breach the agreement, as well as on any remaining companies who fail to sign up. These new powers would allow the Secretary of State to block those who refuse to sign from building and selling new homes.

The government is clear that building safety is an industry wide issue. Cladding and insulation manufacturers are yet to accept their share of responsibility and come forward with a proposal. The Secretary of State has also today written to the Construction Products Association and warned he will do whatever it takes to hold cladding and insulation manufacturers to account.

Today’s announcement follows a statement from Mr Gove in January, when he set out a 4-point plan to reset the approach to building safety and give leaseholders more protection against unfair costs.

Further Information

The Building Safety Levy will be chargeable on new residential buildings of all heights – see clause 57 in the Building Safety Bill.

Leaseholders will be contacted by their developer in due course to confirm whether their building is covered.

The Building Safety Bill includes far reaching provisions to protect qualifying leaseholders, in law, from the costs associated with historical building safety defects. Qualifying leaseholders are those living in their own homes or with up to three UK properties in total in medium and high-rise buildings.

The Building Safety Bill will also give government, regulators, and leaseholders and others new ways to hold to account companies that fail to do the right thing. More information is available here and further details on these measures will be announced in due course.

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ABUS UK FAMILY RALLIES TOGETHER TO SEND HELP TO UKRAINE

In light of the ongoing humanitarian crisis in Ukraine, the ABUS UK family has joined forces with colleagues in Eastern Europe to collect and deliver urgent essential items including food, blankets, clothes, and toiletries to centres for refugees in Poland and the Ukrainian borders as people fleeing the war are escaping into the EU.

 

ABUS UK employees, their families and friends, and business partners, customers and members of the wider local community have collected an amazing amount of critical supplies which have been sorted, packed, and driven all the way across Europe by ABUS UK’s Vince and Roy. They were met in Poland by ABUS Polska’s MD Józef Grabowski and our colleagues from ABUS Polska are now distributing the donations to the people who most need them in various locations in Poland where Ukrainian families are being supported, and to entry points on the Poland/Ukraine border. The ABUS team has even been providing hot drinks to Ukrainians at the Polish border to welcome them to safety.

“It has been so heart-warming to see how the ABUS UK family and their friends and partners have rallied round to support our Help for Ukraine and to know that those supplies are now reaching the people who need it. Thank you!” says ABUS UK MD peter Romanov. “A special thank you must go out to our colleagues Vince and Roy who drove through the night on a long journey through Germany and into Poland to meet with our friends in ABUS Polska and deliver the essentials we had collected.”

 

ABUS is a global manufacturer of high quality, innovative security, access and safety solutions with a nearly 100 years’ history of innovation. ABUS UK is part of a worldwide group of companies that supplies and distributes a huge range of both electronic and mechanical security products and systems for home, mobile security, and commercial security.

 

Abus Uk Website

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ONS: Storms impact on February Construction

Monthly construction output decreased by 0.1% to £14,610 million in volume terms in February 2022 compared with January 2022. This is the first monthly decrease since October 2021 (a fall of 0.9%) following three consecutive months of growth.

Storms Dudley, Eunice and Franklin bought heavy rain across much of Great Britain between 16 to 21 February 2022, as detailed in the Met Office’s February 2022 release. For the construction industry this caused delays and some projects to be suspended. This was because more working days were lost on sites and premises than normal for this time of the year. However, some businesses reported a positive impact as they picked up repair and maintenance work caused from storm damage.

The monthly all work construction output index decreased

for the first time since October 2021

Anecdotal evidence from returns received for both our Monthly Business Survey for Construction and Allied Trades and our Business Insights and Conditions Survey (BICS) suggested some of the issues in sourcing construction products remained. High costs and shortages of materials, particularly for the smaller sized firms, are still mentioned.

Despite these challenges, demand continued to be strong.  New orders in the construction industry grew by 9.2% in Quarter 4 (Oct to Dec) 2021 compared with Quarter 3 (July to Sept) 2021. All sectors recovered to above their pre-coronavirus (COVID-19) level. For more information see our Construction output in Great Britain: December 2021, new orders and Construction Output Price Indices, October to December 2021 bulletin.

Public housing repair and maintenance was the only repair and maintenance sector to remain below its pre-coronavirus (COVID-19) level

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200 CALEDONIAN JOBS SAVED

200 jobs have been saved after administrators agreed the sale of the UK’s largest modular construction company Caledonian Modular.

The Newark-based offsite building solution provider has been sold to the JRL Group after falling into administration in March.

JRL is a £280m-turnover group with 14 divisions including J Reddington, Midgard, and London Tower Cranes.

Joint administrator Mike Denny, managing director at Alvarez & Marsal, said: “The twin challenges of the pandemic and rising inflation have placed strain on balance sheets for businesses across the UK, including those in the construction sector.”

20 employees were already made redundant prior to the sale, resulting in ex-staff contacting employment law firm, Morrish Solicitors, to investigate allegations that the business failed to properly consult staff when making redundancies.

 

Source: The Business Desk

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£300m Wind Factory Images

New images of the mammoth £300million SeAH Wind factory were unveiled today as the project took yet another step forward.

Plans have now been submitted for the 40-metre-tall building, which will redefine the Teesside skyline and stand as tall as Stockton’s Infinity Bridge at its peak – or ten double-decker buses.

The facility, part of the Teesside’s Freeport, will sit on a 90-acre site adjacent to Teesworks’ £107million heavy-lift South Bank Quay. Its 1.13million sq ft footprint is four times the size of the Riverside Stadium and, when complete, will be the largest facility of its type in the world.

The factory services the offshore wind sector, producing monopiles that form the foundations of offshore wind turbine construction, will create 1,500 jobs in the supply chain and during construction when work begins in July. Once operational, a further 750 roles will be created.

SeAH Wind are also set to hold an event to meet local supply chain companies to let them know how they can get involved in the work, being led by construction consultants K2 Consultancy, on April 20 at Sedgefield’s Hardwick Hall.

Tees Valley Mayor Ben Houchen said: “2022 is our year of construction and we are rebuilding a new skyline for Teesside – one that looks to the future and is creating hundreds of well-paid jobs in the cleaner, healthier and safer industries of tomorrow.

“It’s fantastic to see that both SeAH Wind and its construction consultants, K2 Consultancy, are committed to employing local workers and using the region’s talent and suppliers to deliver the facility. These aren’t just fancy pictures, they’ll start to be a reality, with spades in the ground coming in just a few short months.

How the new factory will look

“This latest move once again proves this scheme, along with other innovative projects taking place at Teesworks, are not pie-in-the-sky proposals. They are very real developments going ahead right now and delivering for local people.”

President & CEO of SeAHSteel Holdings, Joosung Lee said: “After acknowledging a solid and stronger business relationship, SeAH Wind and Teesworks have decided to set out a long journey together.

“I am sure that the remaining work will go smoothly with the support of TVCA and our local partners.  Bringing UK’s first monopile manufacturing facility is a very meaningful and significant project to the UK offshore wind industry.  We will make every effort to produce visible outcomes in every stage of the development.”

Cllr Mary Lanigan, leader of Redcar & Cleveland Borough Council, said: “This is yet another example of positive progress being made in our area; in terms of both the creation of jobs, and the future of industry in the north east. 1500 supply chain jobs and 750 positions upon completion of the project is a significant number and we are proud to be becoming a leading area for clean, renewable energy.”

Source: The Northern Echo

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Nuclear Power Stations May be scaled up to help UK energy

The UK could massively scale up its nuclear power capability by 2050 – with new stations having far greater capacity, it is understood.

The Business Secretary has suggested six or seven new sites could be in operation by that point, with all but one of Britain’s existing plants set to be decommissioned by 2030.

The PA news agency understands that while the number of stations is likely to remain similar to now, the plan is for each new site to be far more powerful than those they will replace, significantly pushing up the UK’s capacity.

The Sunday Telegraph reported that Boris Johnson is preparing to announce plans to expand the Government’s commitment to move forward with new large-scale nuclear power stations this decade.

The newspaper said the plan had been to back one by 2024, but it is thought the new ambition will be to support the construction of two by 2030.

The move to scale up nuclear power production will reportedly form part of a major expansion of homegrown energy in the wake of the Ukraine crisis.

It comes as the Government’s energy security strategy is expected to be unveiled on Thursday.

Asked about the scale of the its nuclear ambitions, Kwasi Kwarteng told The Sunday Telegraph: “There is a realisation across Government that we could do more on nuclear.

“With energy, you’re thinking maybe 30, even 40 years [ahead]. If we fast forward to 2050, there is a world where we have six or seven sites in the UK. That isn’t going to happen in the next two years, but it’s definitely something that we can aspire to.

“The Prime Minister said, in terms of the energy generation mix, we could see maybe a quarter of that being nuclear. I’d say 15 to 25 per cent. But obviously in the first three years you’re not going to suddenly have six new nuclear stations in three years. It’s physically impossible to do that.”

Source: The Dorset Echo

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New qualification programme launched for timber engineering professionals

Trainees, Leah Walters left and Jenni Bunny

A new generation of timber engineering specialists are set to benefit from a new training and qualification scheme for designers involved in the trussed rafter industry.

The Trussed Rafter Association (TRA) launched its new Designer Development Programme at a special careers event held this month to help address skills shortages in the industry.

Timber trussed rafters are a very popular, low carbon structural solution for complex roofscapes in housing and other buildings, and are an example of category 3 MMC (pre-manufactured components in Modern Methods of Construction). Almost every TRA member company is looking to recruit new talent into timber engineering roles, particularly designers.

 

TRA chief executive Nick Boulton said:

 

“The Designer Development Programme is a great step forward for our industry, providing a clear training and qualification programme that we believe will enhance the attractiveness of timber engineering as a career choice and will provide formal recognition of the very high technical and business skills required in trussed rafter design. It offers the next generation of designers a structured programme for their development and will provide them with a series of certificates and evidence books to show their progress and increasing experience.”

 

The TRA’s Designer Development Programme has seven levels and is based on the completion of evidence books in which trainee designers must prove their knowledge and experience, and put theory into practice via five roof design scenarios.

Before starting the Designer Development Programme, candidates must have completed introductory systems training and the TRA online Essentials Training, developed with Edinburgh Napier University.

Then having moved onto the new qualification programme, each set of evidence books is expected to take around six months to a year to complete, giving the trainees plenty of opportunities to encounter a full range of design briefs in the course of their work. They must show their awareness of the commercial and technical aspects of the projects and include proof of their knowledge of safety, efficiency and best practice.

Throughout the programme there are checkpoints at which the evidence books are assessed by an in-house assessor for the first four levels, and externally, by a TRA registered assessor, thereafter.

So far seven trainees have started level one of the Designer Development Programme. Level two is now also available.

 

One of those trainees is Leah Walters. Leah works at Donaldson Timber Engineering in Derbyshire and started her career as a receptionist before deciding to re-train as a designer. She took part in the beta testing for the new training programme and will soon be submitting her evidence books to her in-house assessor.

She said: “It’s great to have been involved in testing the programme. My assessor, David Murphy, has helped me make sure that I’ve experienced all the necessary types of roof design in my day-to-day work so that I can include them in my evidence books, and has supported me throughout.

“It was hard at first because I was new to design, but the books are interactive and link you to helpful notes at the back which play a really big part in your understanding. The books are easy to navigate and it’s straightforward uploading your designs.

“I haven’t felt under pressure to complete the books. I just set aside a few hours a week and felt I was learning on the job. It’s made me think more about feasibility, safety and the commercial aspects of a project before starting the design.”

 

Jenni Bunny is a trainee designer at ETS Trusses in Shrewsbury. She is on level one of the programme and said: “Since being on the programme it makes you think differently about jobs. I’m more commercially aware. You have to consider the viability and saleability and the manufacturing side. And of course, really important, the logistics – can we deliver it?

“My mentor at work has said he’s delighted with the progress I’ve made in just 15 months with the company, which has made me feel proud of myself. The great thing is that we now have a structured programme to show our knowledge and development as we progress and get more experienced.”

 

The Designer Development Programme has been developed by the TRA’s training committee led by Richard George, managing director of timber engineering software provider MiTek.

Other member companies involved in creating the programme include Wolf Systems, ETS, ITW Construction Products  Donaldson Timber Engineering, Armstrong Timber Engineering, National Timber Systems, Arnold Laver, Pasquill,, Trussform DWB Group and Crendon Timber.

The TRA represents the trussed rafter and metal web joist industry in the UK and Ireland. Members include the principal manufacturers of trussed rafters, metal web joists, suppliers and professionals involved in roof truss and engineered wood floor joist design and manufacture.

 

www.tra.org.uk

 

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Schüco to present Dublin’s first Zak World of Façades

Schüco is proud to be the presenting partner at the 88th Zak World of Façades on 6 April at The Convention Centre in Dublin, Ireland. The international conference series on façade and design engineering takes place in over 30 countries across the globe, with this being the first edition hosted in Dublin.

 

The event will showcase sustainable innovations and challenges in the construction industry pertaining to the building envelope. On display will be the latest technological solutions from leading solution suppliers.

 

Attendees will hear from experts in the domain of façade design, engineering, procuring and execution. The one-day conference will feature an exhibition, presentations, panel discussions and networking opportunities.

 

Stefan Trifonov, Head of Engineering for Schüco UK and Ireland, will present Unconventional Perspectives on Sustainability, where he will discuss sustainability from a system design point of view, the benefits of local off-site façade manufacturing and highlight case studies in Dublin.

 

Stefan commented, “I am very excited to be speaking at Zak Dublin. It’s going to be a fantastic event and I am looking forward to seeing my friends and colleagues from across the industry to discuss sustainable façade solutions.”

 

To register for Zak World of Façades Dublin,

PLEASE CLICK HERE

 

 

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Target Windows – a caring company

CHARITY SUPPORT FOR ANTHONY LOCKLEY

Stoke-on-Trent based company Target Windows has pledged charity support for friend Anthony Lockley, who was diagnosed with Motor Neurone Disease (MND) at the end of 2021.

Target Windows is part of a group aiming to fundraise £1,500 to support Anthony and his family.

All of the funds raised will go towards meeting the costs of care and equipment for Anthony, including physiotherapy aids, equipment, and house adaptations. This support will be vital for the road ahead as the family learn to live with MND, with the hope of granting Anthony a better quality of life.

This incredible cause has already garnered much support with £1,210 raised by 34 supporters so far through a Just Giving Crowdfunding page. Now Target has launched its very own Just Giving Crowdfunding page to help boost this total for Anthony and his family.

MND is a condition that affects the brain and nerves, casing weakness over time. While there is no cure, treatments such as physiotherapy and medicines can reduce the impact the disease has on a person’s daily life, to help them live with the condition for years to come.

This is not the first time that Target Windows has dedicated time and money to raise funds for causes important to them. In August 2021, a team from Target completed the Three Peaks Challenge and raised £1,315 for Dogs Trust, a charity which is also close to their hearts.

Target Windows is a Staffordshire-based company, part of Stone and Stoke for almost 40 years, extending into Uttoxeter and beyond. This family-owned and run businesses is built on quality, trust, and hard work, and has grown from strength to strength over the last four decades. Target specialises in single-story extensions, window and door installation, build of orangeries and conservatories, and a range of home improvements services across Staffordshire.

 

Target Windows

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