Following today’s announcement that the Bank of England (BofE) has reduced the base interest rate from 5% to 4.75%, David Hannah, Group Chairman of Cornerstone Tax, argues that this move is crucial to mitigate the effects of recent measures introduced on the UK property market as part of the government’s Autumn Budget. Rachel Reeves’s announcement of a 2% surcharge increase on second homes, along with reduced stamp duty thresholds for first-time buyers to be introduced next year, has come at a significant cost to the property market. These changes are placing heavy financial burdens on first-time buyers, increasing mortgage rates whilst contributing to a long-anticipated collapse in the supply of private rental properties, driving an unprecedented surge in rental costs.

David Hannah, Group Chairman of Cornerstone Tax, comments:

“The decision from the government to lower stamp duty bands shows a concerning deficit of joined-up thinking. Does this Chancellor and Prime Minister not understand that if they want 1.5 million new homes, they cannot drive landlords out of the market, incur additional charges for first-time buyers and freeze up working capital for developers – which can only be available if these homes are selling. I expect stamp duty receipts to fall significantly, then to flatline in Q1 2025, potentially plunging the British property market into a desperate situation. In essence, reducing stamp duty thresholds means that it will ultimately be the consumers who foot the bill.

“Furthermore, it would make sense for the new Government to suspend, or even abolish, the 3% surcharge where properties are being acquired for private rental sector investment. Removing this measure would encourage landlords to increase their holdings, rather than exit the market – reversing the decline in supply of rental homes and potentially expand it to the point where demand no longer outstrips supply.” 
 
Whilst the decision from the BoE should come as welcome news to those with their eyes on Britain’s property market, Hannah holds that more can still be done to stimulate the sector – urging the monetary policy committee to aim for a 3-3.5% base rate in order to stimulate private development, incentivise first-time buyers and restart the private rental sector.

_{St Margaret’s Church of England Academy in Aigburth(Image: Google Street View)}

Almost £4m is to be pumped into a Liverpool school to help ease the pressure on the city’s educational place challenges. In response to an increasing need for school places, Liverpool Council funds the construction and refurbishment of school buildings using the Basic Need capital grant provided by the Department for Education (DfE). With work already done to provide needed spaces at a city girls school, finances are being made available to create 30 new places for boys in Aigburth.

The local authority’s cabinet is poised to sign off on £3.9m to be drawn down from the capital grant to All Saints Multi-Academy Trust to fund construction and refurbishment of school buildings at St Margaret’s Church of England Academy.

All Saints Multi-Academy Trust were approached to increase their Planned Admission Number – the amount of pupils per year group – from 160 to 180 for September 2024, increasing to 190 from September 2025 onwards. The school met the DfE requirements for the creation of additional places based on the planning area it serves, physical capacity to extend and is well placed in terms of governance and performance.

A report issued to cabinet members ahead of their meeting next week set out how pupil place planning considers the predicted long-term needs for new school places arising from population growth. As a commissioner of school places, Liverpool Council undertakes an annual audit of school capacity and uses data to allow accurate and robust forecasting for school places at both primary and secondary level, including data on school capacity, live birth data, pupil numbers, housing development yields and in-year transfers to project the number of school places which will be needed.

The council then works to provide additional places through the expansion of existing schools. For a number of years, the city has faced a challenging time in providing sufficient secondary school places, particularly in good or outstanding schools.

Using planning area forecasts, significant work has already been undertaken to create places within existing provision in areas of demand. This has included the creation of 70 new places in all girls’ schools.

In order to secure a balance of provision by providing additional boys places within this planning area, discussions have taken place with St Margarets Church of England Academy to permanently increase their planned admission number by 20 places per year group from 2024, increasing to 30 from September 2025. The cash boost is expected to be approved when cabinet meets on Tuesday November 12.

Source: Liverpool Echo

BriggsAmasco has triumphed at this year’s NFRC Scottish Roofing Contractor of the Year Awards. Its teams’ outstanding delivery of a challenging waterproofing programme as part of the Central Quay residential development in Glasgow earned victory in the ‘Multi-Discipline Project over £250,000’ category.

BriggsAmasco’s success was announced at an NFRC finalists’ event held at The Grand Central Hotel, Glasgow awards on Friday 25th October. A record 270 contractors, suppliers and merchants from across the Scottish region attended the event, which was hosted by TV and radio personality Tam Cowan.

Tony Lawther, Managing Director at BriggsAmasco said:

“What a fantastic achievement. The NFRC Scottish Roofing Contractor of the Year Awards are incredibly well-regarded throughout the industry. To come out on top in a hotly contested roofing category is a real badge of honour for our waterproofing teams and the company as a whole.” 

The Central Quay programme comprised 35 roof areas across four steepling tower blocks totalling 3,323m². The huge area was waterproofed by BriggsAmasco using the skillset of five different flat roofing activities: Bauder Bakor Hotmelt; Bauder Thermofol single-ply; Bauder Liquide, Bauder BTRS built-up felt roofing, and IKO Permascreed mastic asphalt levelling screed. It also included paving slab and ballast roof landscaping finishes, as well as a large podium deck 1870m² over an underground car park.

Delivered to the highest standard with a zero-defect sign-off, the Central Quay project further showcased BriggsAmasco teams’ ability to overcome waterproof detail challenges and deliver a range of perfectly executed solutions using mastic asphalt.

Tony Lawther continued:

“I can’t speak highly enough of the incredible work carried out at Central Quay, one of the city’s newest and largest housing developments. Congratulations to all BriggsAmasco teams involved in the project.”

Steel and concrete production collectively contribute to a staggering 15 per cent of global greenhouse gas emissions, a figure considered alarmingly high due to the sheer scale and ubiquity of these materials in modern construction.

The construction industry’s significant environmental impact has spurred a shift towards low-carbon alternatives, driven by increasing awareness of climate change and stricter environmental regulations.

However, these eco-friendly options come with higher production costs, primarily due to the need for specialised equipment, alternative raw materials, and innovative technologies such as carbon capture and storage.

Renewable energy plays a crucial role in producing green steel and concrete, but it often comes with higher initial costs. For instance, green steel produced using hydrogen-based direct reduced iron and electric arc furnaces (H2-DRI-EAF) can incur a ‘green premium’ of around US$225 per tonne when hydrogen is priced at US$5/kg.

Similarly, low-carbon cement using carbon capture and storage technology can be 75 per cent more expensive than conventional cement. However, it’s important to note that these increased material costs typically result in only modest price increases for end products, with estimates suggesting just a 1 per cent increase in the total cost of a house or car.

Despite the increased expenses, major consumers in the construction sector, including real estate developers, builders, architects, and other stakeholders, are increasingly willing to pay a premium for sustainable steel and concrete.

This stems from a combination of factors, including corporate social responsibility commitments, regulatory compliance, and the growing demand from environmentally conscious end-users who prioritise sustainable buildings and infrastructure.

A major report released at Climate Week NYC by Climate Group and Ramboll reveals a significant shift in the global business landscape towards sustainable construction materials. The study, which surveyed over 250 companies across 42 countries and 21 industries, found that nearly half of the respondents are willing to pay a premium for lower-emission steel and concrete. This ultimately signals a robust demand for sustainable options in these carbon-intensive industries.

The report also highlights that 78 per cent of surveyed companies anticipate these sustainable materials will become standard within the next decade, indicating a growing recognition of the importance of reducing carbon emissions in construction.

Despite the positive outlook, several barriers to widespread adoption remain — including cost, industry conservatism, and lack of knowledge. To accelerate the transition, businesses are calling for decisive government intervention through financial incentives, carbon pricing mechanisms, and minimum product standards.

Ramboll Director for Energy-Intensive Industries Anna Ekdahl noted that lowering steel- and concrete-related emissions requires more than massive investments in new production facilities alone, instead, it will require a realignment of the entire sustainable energy ecosystem.

“Grid owners will have to take on a more active role than ever before — government will have to shape financial incentives, designers will have to come up with new solutions, producers will have to make bold business decisions, and end users may need to accept a price premium until the market matures,” said Ekdahl.

Not making this transition to low-carbon steel and concrete poses significant environmental risks. Continued reliance on traditional production methods for these materials heavily contributes to global greenhouse gas emissions, exacerbating climate change and its associated impacts.

This inaction perpetuates the cycle of environmental degradation, including rising sea levels, more frequent extreme weather events, and biodiversity loss.

Conversely, embracing low-carbon alternatives offers substantial environmental benefits. By adopting innovative technologies and processes, companies can dramatically reduce their carbon footprint, potentially cutting emissions by up to 70 per cent in cement production alone. This shift not only mitigates climate change but also promotes resource efficiency, reduces air and water pollution, and preserves natural habitats. Moreover, the switch to low-carbon materials can promote broader industry changes, inspiring further innovations and setting new standards for sustainable construction practices.

Ultimately, the move to low-carbon steel and concrete represents a crucial step towards a more sustainable and resilient future, aligning industrial practices with global environmental goals — like the Paris Agreement.

Companies in the building sector that fail to embrace green steel or concrete risk significant competitive disadvantages in an increasingly environmentally conscious market. As sustainability becomes a key driver of consumer and investor decisions, firms that lag behind in adopting eco- friendly materials may find themselves excluded from lucrative projects and partnerships.

Government regulations and building standards are evolving to prioritise low-carbon construction, potentially leaving non-compliant companies ineligible for contracts. Furthermore, institutional investors are increasingly focusing on reducing emissions in their portfolios, which could impact funding opportunities for companies resistant to change.

The growing prevalence of green steel offtake agreements, particularly in Europe, demonstrates a shift in market dynamics that forward-thinking companies are capitalising on.

As the demand for sustainable building materials rises, those who fail to adapt may face higher costs due to carbon pricing mechanisms like the EU’s Carbon Border Adjustment Mechanism, further eroding their market position.

Ultimately, the transition to green steel and concrete represents not just an environmental imperative, but a critical business opportunity that companies cannot afford to ignore.

The transition to low-carbon steel and concrete is a critical step in the construction industry’s efforts against climate change, driven by increasing regulatory pressures and consumer demand for sustainable materials.

Companies that embrace this shift will not only contribute to significant emissions reductions but also gain competitive advantages in an increasingly sustainability-focused market.

Source: Build Australia

The U.S. has become recognised for rolling out the most far-reaching climate policy of any major world power to date. The Biden administration’s 2022 Inflation Reduction Act (IRA) introduced a wide range of financial incentives to support a green transition, which has helped attract billions in private investment in renewable energy and clean technologies. The EU and the U.K., which were expected to lead the green transition, have lagged behind the U.S. on climate policy over the last two years. However, the U.K.’s new Labour government is rapidly developing its green transition strategy, supported by strong climate policies, innovative energy initiatives, and financial incentives that could soon rival U.S. efforts.

The U.K.’s largest electricity supplier, Octopus Energy, has launched a new initiative to offer consumers a discount on their energy bills during times of favourable conditions for renewable energy production. So, when the wind is blowing more, the company offers consumers reduced-price electricity from its wind turbines. The company hopes this will encourage consumers to support wind turbine projects, as well as use energy in a more considered way. This is just one of the schemes being run by utilities and the government to demonstrate that a shift away from fossil fuels to renewable alternatives could help slash energy bills and have a better impact on the environment. 

One London-based start-up, Ripple Energy, is now inviting people to purchase a piece of a wind turbine in exchange for a discount on their electricity bills. Meanwhile, in Grimsby in the north of England, a local cooperative is investing in small-scale solar projects to help cut energy costs for charities in the area.

The U.K. has set ambitious climate targets but has been greatly criticised for not doing enough to meet these goals. The previous Conservative government pledged that all of the U.K.’s electricity would come from low carbon sources by 2035, as well as announced plans to increase offshore wind capacity five-fold by 2030, increase solar power capacity five-fold by 2035, and expand nuclear power. Yet, in February, U.K. ministers found themselves in court for a second time for failing to align the climate action plan with the government’s climate pledges, as well as filling the plan with ambiguities and loopholes.

The government’s ambitious new energy initiatives are already helping to attract higher levels of funding from the private sector in renewable energy and clean tech. In September, Octopus Energy Generation announced plans to invest almost $2.6 billion in clean energy projects by 2030.

Zoisa North-Bond, the CEO of Octopus Energy, stated,

“The U.K. is on the verge of a green energy revolution.” North-Bond added, “This £2 billion investment in homegrown renewables will help boost our energy security and pave the way for a more affordable energy future… Solar and onshore wind are among the cheapest energy sources available. By building closer to demand, we can maximise green electricity when it’s abundant and lower bills for customers nationwide.”

In October, the government announced it had raised nearly $31.1 billion in private investment for pioneering energy projects. This came ahead of the International Investment Summit, which helped garner greater attention for sectoral growth in line with new government energy policies and climate pledges.

Following years of stagnation under the Conservative government, there have been significant strides in energy policy and clean energy incentives in recent months under the new Labour government. This is expected to attract high levels of private investment in the coming years and diversify clean energy investment beyond the U.S. market.

Source: OilPrice.com