Leeds Bradford Airport Transformation of its terminal facilities

Leeds Bradford Airport (LBA) has announced that it has awarded the Contract for Phase 2 of construction works on its £100m regeneration project to Farrans Construction, as it continues to transform its terminal facilities to dramatically improve the passenger experience and help unlock economic growth for the region.

With the terminal extension (Phase 1) due to handover in Summer 2025, the refurbishment of the existing terminal (Phase 2) of LBA: REGEN is expected to complete in Winter 2026, setting up an exciting period of development for the airport.

Farrans is a leading building and civil engineering contractor which operates across the UK and Ireland. The company is already on-site completing Phase 1 of the project which involves the construction of the 9,500m2, three-storey terminal extension (pictured). Passengers will benefit from more seating, faster security, new shops and eateries, and a larger baggage reclaim area and immigration hall, as well as improved access for passengers with restricted mobility.

In Phase 2, Farrans will be undertaking a full refurbishment of the existing terminal. Works will be delivered in multiple sub-phases to minimise disruption to customers and allow the airport to operate as close to normal as possible. Improvements include the creation of new staircases, lifts and escalators to provide an open plan feel which will complement the new lighter and brighter terminal extension. Remodelled internal spaces will allow improved passenger movement and there will be brand new security and arrivals facilities, World Duty Free and shops, bars and restaurants.

By 2030, the regeneration has the potential to create 1,500 new direct jobs at LBA and 4,000 new indirect jobs, as well as contribute a total of £940 million to the local economy*.

The regeneration will also help LBA to further decarbonise its operations, as outlined in the airport’s 2030 Net Zero Carbon Roadmap, with the installation of new all electric heating, lighting and machinery, including new baggage belts. It is expected that airlines attracted by the regeneration will accelerate the deployment of their newest, quietest and most efficient aircraft at the airport, in turn reducing the overall environmental impact of LBA’s operations.

Vincent Hodder, Chief Executive of Leeds Bradford Airport, said:

“We’re delighted to be working with Farrans on Phase 2 of our LBA: REGEN project. We’ve already created a strong working relationship with the team on Phase 1 and as we transition into Phase 2, we’re excited to be able to take our customers along with us on this journey.

“It’s also an opportunity to let our customers know that while this important work gets underway, there will be temporary changes to the terminal while we deliver this new and improved customer experience. LBA: REGEN is the first major improvement to our terminal since its opening in 1968 and is long overdue. It’s vitally important to upgrade LBA to the world-class facility Yorkshire deserves.”

Cathal Montague, Regional Director at Farrans Construction, said:

“We are pleased to be continuing our strong working relationship with Leeds Bradford Airport as they progress with this important improvement project which will have long term benefits for this region. Our experience in the aviation sector has enabled us to work collaboratively with our client to ensure the airport’s operations have continued without disruption, and we will be putting in place similar plans as we move forwards into Phase 2.

“Our team is fully invested in the complete delivery of this regeneration project and I am pleased that we will be remaining on site to see the work come to completion at the end of Phase 2. Leeds is an important region for our business, we are all frequent users of LBA and we are looking forward to working together with the airport’s team on the successful delivery of the next stage of the project.”

This year, the airport is expected to contribute a total of £460 million to the local economy, directly employing 2,100 people and indirectly supporting 4,500 jobs.

*data collected from York Aviation analysis.

 

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California’s Wildfires, resilience and social housing

Left: Bryan Wong speaks to East West Bank volunteers at a Women Build event

Right: Robert Lo volunteering at SGV Habitat’s 2024 Women Build (Photos by East West Bank)

 

A Dialogue with SGV Habitat on Rebuilding After Wildfires

Robert Lo and Bryan Wong have known each other for years—not just through their shared commitment to affordable housing, but also as friends. Robert, Head of Commercial Real Estate Banking at East West Bank, serves on the board of San Gabriel Valley Habitat for Humanity, one of the Bank’s clients. Bryan, as CEO of SGV Habitat, leads efforts to help families access safe, affordable housing.

Recently, their work took on a new urgency. The devastating Eaton and Palisades wildfires displaced families and destroyed homes—including some built or repaired by SGV Habitat. As the community begins to rebuild, Robert and Bryan discuss the impact of the fires, how Habitat is adapting and how people can help.

 

Robert Lo: Bryan, these wildfires have been brutal. How did they affect you and the team?

Bryan Wong: I live in Monrovia, near the Eaton Fire, and we were in the evacuation zone for awhile. For three days, we had no power or cell service. My family got lucky—just some minor wind damage—but others weren’t so fortunate.

One of our staff members’ homes survived the flames but is completely unlivable due to severe smoke damage. We also lost a Habitat home that we had just completed a year ago. And beyond that, seven other Habitat home partners who had received critical repairs lost their homes, too.

The fire was unpredictable. It didn’t just move in a straight line—it skipped around, creating pockets of destruction. One side of a street would be gone, while the other was untouched.

Robert Lo: That’s heartbreaking. It really shows how devastating these fires were. Even before this though, housing affordability was already a major issue. What makes Habitat’s approach unique?

Bryan Wong: We are the primary—if not the only—affordable housing builder in the San Gabriel Valley offering homeownership. Our focus is on families earning 80% or less of the area’s median income. But beyond new construction, we also help people stay in their homes through critical repairs.

Ninety percent of our home repair clients are single women over 70, who are living on Social Security. Without Habitat, they’d have no choice but to live in unsafe and/or unsanitary conditions.

We’re also working on major renovation projects, like restoring homes from the Caltrans initiative. These homes were originally purchased by the state for a freeway project that never happened, and we’re now fixing them up and selling them to new first-time homebuyers.

Robert Lo: Having volunteered on several Habitat build projects, I know how much hard work goes into the process. What are some of the biggest lessons you’ve learned from these builds?

Bryan Wong: One big lesson is the importance of being flexible and thinking ahead. I remember a project we worked on together where we had to build walls indoors because of heavy rains. That forced us to rethink our process, and now we’re taking it even further.

We’re planning to build an entire home in a church parking lot, then transport and reassemble it on-site. This method saves time, reduces costs, and allows us to scale up quickly. It’s one of the ways we’re trying to be more efficient as we move forward.

Robert Lo: That kind of adaptability is key. Do you think the wildfires will change the way you approach building?

Bryan Wong: The Eaton Fire was the second most destructive in California history, and full recovery could take up to 10 years.

Right now, our top priority is making immediate repairs to prevent further damage, especially with the rainy season coming up. We’re also working with the county to streamline permitting for accessory dwelling units (ADUs).

ADUs are small secondary homes that can serve as temporary housing while families rebuild and then later be rented out for additional income. It’s a great way to create long-term affordable housing options.

At the same time, we’re pushing for stronger fire-resistant policies and working to prevent skyrocketing insurance rates from creating an even bigger housing crisis.

Robert Lo: What can people do to support SGV Habitat during this recovery?

Bryan Wong: Habitat is in this for the long haul. A lot of groups focus on immediate relief, but rebuilding takes years. That’s why long-term partnerships and support are critical.

One of the biggest challenges is securing building materials. Robert, you introduced us to a hardware store owner through East West Bank, and that connection has been a game changer. Having a stockpile of materials ready before disaster strikes speeds up the rebuilding process.

You also helped connect us with Amity Foundation, which has been incredible. Amity helps people reenter the workforce after incarceration, addiction or homelessness, and they now send up to 20 volunteers per day to our build sites. It’s a win-win—they get job training, and we get much-needed workers.

Robert Lo: Every crisis brings challenges, but do you see any silver linings?

Bryan Wong: Absolutely. This tragedy has brought people together and created opportunities for innovation. We’re exploring new ways to build efficiently, such as off-site construction, and looking at ways that ADUs can address housing shortages. These efforts will outlast the disaster, making our community stronger and more resilient.

 

Left caption: East West Bank volunteers working at SGV Habitat’s 2024 Women Build. (Photo by East West Bank) – Right caption: Completed SGV Habitat ADU in Pasadena that East West Bank volunteers helped build. (Photo courtesy of SGV Habitat)

 

Source: East West Bank

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Emerging Technologies for Construction

 

Survey reveals most popular emerging technologies being adopted by construction industry

 

In a recent survey conducted by UK Connect, IT directors from some of the top 150 construction companies in the UK shared insights into which emerging technologies they are considering adopting in the next 12-24 months.

This data provides insight into the key trends shaping the future of construction technology. Here’s a breakdown of the key technologies under consideration and how they are poised to impact the construction sector.

 

AI and Automation (27%)

27% of respondents thought that AI and automation are both at the forefront of technological advancements in construction. Companies are exploring AI-powered predictive analytics, autonomous machinery, and automated workflows to enhance productivity and reduce costs. AI-driven safety monitoring systems can detect hazards in real-time, while automation in design and planning can help streamline operations. With increasing labour shortages and demand for efficiency, AI and automation are becoming a necessity rather than a luxury.

 

IoT Sensor Networks (21%)

According to 21% of our audience, The Internet of Things (IoT) is revolutionising how construction sites operate. IoT sensor networks enable real-time monitoring of equipment, materials, and environmental conditions, improving site safety and operational efficiency. These sensors can track structural integrity, detect temperature fluctuations, and monitor equipment usage to prevent breakdowns. By harnessing IoT data, construction firms can make data-driven decisions that enhance project outcomes.

 

Remote Site Connectivity (21%)

Construction sites are often located in remote or temporary locations, making reliable connectivity a challenge. Remote site connectivity solutions, such as satellite communications and mobile broadband, ensure seamless data exchange between on-site teams and headquarters. This enables real-time collaboration, cloud-based project management, and remote monitoring, ultimately reducing delays and improving site productivity.

 

Private LTE/5G Networks (12%)

Private LTE and 5G networks are gaining traction in the construction industry due to their ability to provide high-speed, low-latency connectivity on-site. Unlike traditional public networks, private LTE/5G offers enhanced security, greater bandwidth, and dedicated access for construction operations. These networks facilitate real-time data sharing, improve communication between workers, and support the integration of smart construction technologies.

 

5G for Enterprise (9%)

5G technology is set to transform construction by enabling ultra-fast connectivity, enhanced mobile capabilities, and improved machine-to-machine communication. With 5G, construction firms can leverage augmented reality (AR) and virtual reality (VR) for remote inspections, enhance drone surveillance, and enable seamless collaboration through high-definition video conferencing. As the infrastructure for 5G expands, its role in construction will continue to grow.

 

Cloud Connectivity (6%)

Cloud computing is a game-changer for construction firms, providing scalable and flexible data storage, real-time collaboration, and seamless integration with digital tools. By moving operations to the cloud, companies can reduce IT costs, improve data security, and enhance accessibility across multiple locations. Cloud-based construction management software allows teams to track progress, manage resources, and access blueprints from anywhere, ensuring efficiency and transparency.

 

Other Technologies (3%)

Beyond these mainstream technologies, 3% of construction firms are exploring additional innovations such as blockchain for project management, robotics for automated construction, and digital twins for virtual site simulations. As technology continues to evolve, the industry will see more adoption of cutting-edge solutions that drive efficiency and sustainability.

 

UK Connect concludes that the survey results highlight the growing interest in AI, IoT, and connectivity solutions among leading construction companies. As these technologies continue to advance, their adoption will help the industry improve safety, efficiency, and project management. Firms that embrace these innovations early will be better positioned to stay competitive in the ever-evolving construction landscape.

Source: Showhouse

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Construction Skills ‘What’s Happening?’

The need to attract young people to the construction industry is vital for its growth and the important role it plays in the UK economy.  As we are currently in the midst of National Apprenticeship Week, we thought a ‘What’s Happening’ report might be of interest to our readers.

Best Wishes the Editor.

 

 

 

Breedon launches 2025 apprenticeship programme to attract top talent into their industry

Breedon Group plc (Breedon or the Group), a leading vertically-integrated construction materials group in Great Britain, Ireland and the USA, has today (February 10th) launched its 2025 apprenticeship programme, to provide exciting career pathways for the next generation of skilled workers and leaders into the industry.

The programme will see the Group welcome its largest cohort to date across England, Scotland, Wales and Ireland in September this year. Interested candidates are invited to apply for roles across many different disciplines from Monday, 10 February, including:

 Electrical Maintenance Technicians               Operations Management

Mechanical Maintenance Technicians            Commercial (Quantity Surveying)

Quarry and Ready-Mix Operatives                 Materials Testing Technician

Customer Service Agents                                   Construction Site Supervisor

Credit Controller                                                  Surfacing Operatives

 Ceri Travers, Early Career Manager at Breedon Group, commented:

“Through our apprenticeship programme we are not only investing in the future of our industry but also empowering a new generation of talent with the skills and opportunities to build successful careers.

 “Breedon is a great place to start a career and our apprentices will gain invaluable hands-on experience whilst learning from some of the most knowledgeable professionals in the field.

 “We have a lot to offer our apprentices, including a competitive starting salary and annual leave entitlement, development opportunities, and of course the chance to begin an exciting career in an industry that can make a material difference.”

 Successful applicants will be paid from day one and will have the opportunity to build a career, having gained industry experience at the largest independent construction materials group in the UK.

The application window will be open until 10 March 2025, with Scotland applications closing on 16 March 2025.

CLICK HERE to find a full timeline for the application process and

onboarding programme for the successful applicants

 

 

Supercharging UK house building: NHBC Multi-Skill Training Hub for apprentices approved in Lichfield following £100M investment

Planning has been approved in Lichfield for a multi-skill apprenticeship training hub, which will shake up house-building training and tackle the construction skills shortage head-on. Part of a planned national network of multi-skill training facilities spearheaded by NHBC, the Lichfield hub is the first to receive planning permission.

The Lichfield Multi-Skill Training Hub, developed by the National House Building Council (NHBC), the UK’s leading new home warranty and insurance provider, will be funded in partnership with the Construction Industry Training Board (CITB), with land provided by Redrow Homes.

The new facility at The Lakes Development, Curborough, is one of 12 hubs planned by NHBC, which is supercharging industry training with a £100 million investment in a national network of multi-skill training hubs across the UK, supporting 3,000 apprentices a year.

CITB is investing £40 million alongside NHBC’s investment to establish up to 32 hubs by 2027 to support the Government’s homebuilding target of 1.5 million new homes.

The NHBC Multi-Skill Training Hub, which is set to open later this year, is the size of two-thirds of a football pitch and costs £1 million. It will provide skilled, site-ready tradespeople faster, giving housebuilding a significant boost locally.

Initially, the NHBC Multi-Skill Training Hub will focus on essential trades like bricklaying, groundwork and site carpentry. The facility is designed to stay flexible, ready to adapt to local housing needs and regulatory requirements, ensuring a flow of qualified tradespeople able to build high quality homes.

As a registered training provider, NHBC’s unique approach means 200 apprentices each year from diverse backgrounds will undergo a programme of immersive training in real site conditions from day one.

Results from NHBC’s single-skill training hubs show apprentices are completing this tailored and industry-leading training in as little as 14 months, with many achieving distinctions. That’s nearly twice as fast as traditional education routes, which can take up to 30 months.

Commenting on the approval of the NHBC Multi-Skill Hub at Lichfield, Roger Morton, Director of Business Change at NHBC, said:

“We’re not just training apprentices, we’re shaping the future of UK house building. With 25 years as an officer in the Royal Engineers, I’m driven by navigating challenges and improving quality. The new NHBC Multi-Skill Training Hubs will revolutionise house-building training, tackle the skills shortage head-on and make a real difference to the future of the industry. Our mission is to make sure every apprentice meets NHBC’s industry-leading standards, driving quality and delivering the homes the UK urgently needs, when and where they’re needed. With competitive salaries for qualified tradespeople, NHBC’s Multi-Skill Training Hubs offer a faster, more diverse and rewarding pathway into the house-building industry. Thanks to funding support through the Apprenticeship Levy and generous grants, there’s never been a better time for builders and contractors to invest in taking on apprentices and for people to start a rewarding career in this essential industry.”

 

Tim Balcon, CEO of the Construction Industry Training Board (CITB), commented: 

“The multi-skill training hubs are a fantastic initiative for people that want to pursue a career in home building. We have worked closely with NHBC, government and the home-building industry to develop a programme that is focused on equipping individuals with the skills they need to be productive on site, in the most efficient way. This is truly a collaborative approach and one we are very excited about. People should be proud to pursue a career in construction and home building. There is an array of valuable skills to be learnt, the sense of accomplishment seeing a project completed never fades and it’s a lucrative career too. The average UK construction worker’s salary is over £44,000, nearly £9,000 higher than the average UK salary. We’re excited to see the continued rollout of these hubs following our joint investment with NHBC.”

 

Marc Cattell, Learning and Development Manager at Redrow Midlands added:

“Here at Redrow, we are committed to nurturing the next generation of skilled professionals in the construction and housing industry with our apprenticeship scheme. Redrow is delighted to be able to offer the land for the development of the new NHBC Multi-Skill Training Hub, reflecting our dedication to investing in people, creating opportunities and equipping them with the resources they need to achieve a career in our industry.”

NHBC is currently evaluating other prospective locations for its

new multi-skill training hubs across the UK. 

CLICK HERE for more information

 

 

 

 

NG Bailey, the UK’s largest independent engineering and services business, has opened applications to its nationwide apprenticeship programme across its market-leading Engineering and Services divisions.

Two new apprenticeship roles are open for 2025: apprentice civil engineer and apprentice geospatial surveyor. Both roles will support NG Bailey’s Freedom business, which is part of its Services division alongside Facilities Services and IT Services.

Rob Smith, Group HR Director, said:

“From Perth to Plymouth, NG Bailey has fantastic opportunities available for apprenticeships in a variety of roles across our successful and growing business.

“Having trained and developed apprentices for more than 90 years, we recognise the importance of not only having them in our workforce for the value they bring but also how our award-winning programme gives many people a chance to work in a dynamic industry for the first time.

“Apprenticeships are open to all, no matter what your age or background, which often makes an apprenticeship the best option if you’re looking to change your career or upskill your role.

“Our industry-leading approach develops the behaviours, skills, knowledge, and experience our apprentices need to build a successful career. Recruits are fully supported throughout their programme with us, and we work in partnership with a national network of colleges to offer some of the best training in the industry.”

Sapphire Brooks, an apprentice electrical engineer in NG Bailey’s Engineering division, shared her reasons for applying for the programme:

“I wanted to gain valuable knowledge and experience while starting a career that is both fulfilling and offers opportunities to progress.

“The relationships I’m building at NG Bailey will undoubtedly stand me in good stead as I continue to develop. Whether you’re an apprentice or fully qualified, you have access to a fantastic network of passionate professionals with industry expertise to support and guide you.”

This year, more than 50 apprenticeship roles are available, with positions being

released in phases over the coming weeks through a dedicated section of the company’s website

CLICK HERE TO VISIT

 

 

 

Clive Holland, host of The Clive Holland Show on Fix Radio, the Builders Station, shares his thoughts on how the skills deficit has affected the construction sector:

“With National Apprenticeship Week upon us, the UK faces its worst skills crisis in its history. 350,000 apprentices and 1.3 million new skilled tradespeople are needed over the next decade just to keep up. Without urgent action, major projects – including the government’s ambitious housing targets and the third runway at Heathrow – will grind to a halt. London alone needs at least 55,000 qualified construction apprenticeships, with similar shortages across the UK.
“For too long, the construction sector has been overlooked, with schools failing to promote trade careers and apprenticeship numbers in decline.The industry is also facing a looming retirement crisis, with over a third of the workforce aged 50 and many set to retire within the next decade – pushing the UK’s skills shortage to breaking point.
“This National Apprenticeship Week, we need to change the narrative around careers in the trades, generate further investment in apprenticeships, and provide the right incentives to attract new talent. Without urgent action, the skills gap will only widen – putting Britain’s future building plans in jeopardy.”

 

 

 

Apprenticeship Success Stories from Wates the UK’s leading family-owned development, building and property maintenance company.

Clare Bonthrone

Clare Bonthrone joined Wates five years ago as a Level 7 Accountancy Apprentice and has since grown her career at Wates, becoming a Finance Manager and leading a team of 3. From completing her CIMA exams and qualifying as an accountant, to taking on major projects like the Functional Optimisation project, Clare’s journey exemplifies the steady progression in Wates’ structured apprenticeship programme.

For those considering a Wates apprenticeship, Clare’s advice is simple: “definitely apply”. She highlights the importance of being yourself and focusing on learning and growth.

 Quote: “Joining Wates as a Level 7 Accountancy Apprentice gave me the opportunity to learn technical skills and earn my CIMA qualification and progress to contributing to impactful projects like Functional Optimisation. Wates’ supportive culture, from mentors to hands-on placements, helped me build confidence, discover my strengths, and progress to Finance Manager.

 “Apprenticeships bridge education and employment, creating opportunities for meaningful careers – I encourage anyone considering this path to apply.” – Clare Bonthrone, Finance Manager, Wates.

Lewis Drury  

Lewis joined Wates as a Commercial Management Trainee and has since progressed significantly, recently graduating from university and working towards RICS chartership. His journey exemplifies how Wates’ apprenticeship programme blends a hands-on experience with structured learning to create a well-rounded experience.

Initially unsure about his career path, Lewis discovered quantity surveying whilst researching roles in the construction industry at college. Over the course of his apprenticeship, Lewis has gained exposure to every stage of the construction process, from pre-contract planning to on-site management and project handovers. He found that this rounded approach stood out from traditional university-only routes, providing him with a deeper understanding of the industry.

Quote: “Apprenticeships are invaluable – they offer so much more than a qualification. My journey as a Quantity Surveying Apprentice at Wates has blended hands-on experience with structured learning in a way that traditional university routes don’t provide. I’ve learnt more about the construction process in practice, from planning to project delivery, and the chance to make a real impact, like transforming Leeds’ skyline, my hometown.

 I was initially unsure about my career path, but the Wates apprenticeship has opened so many doors, allowed me to build vital skills and gain new connections” – Lewis, Quantity Surveyor.

 

 

 

To mark National Apprenticeship Week The Guinness Partnership, one of England’s largest housing associations, is celebrating its apprenticeship programme and the value apprentices bring to local communities.

George Turner from Brighton has been carrying out his apprenticeship as a Joiner with Guinness since 2023, where he carries out a variety of tasks including making windows and doors. As well as workplace training with Guinness, once a week George attends classes in Crawley college, where he attends theory classes and carries out training tasks. Although George will finish his apprenticeship training this year, he has already moved into a full-time role at Guinness.

This year George won Guinness’s Apprentice of the Year Star Award, for his excellent progression in the role and for his selfless support to Guinness residents.

Commenting on his career choice, George said:

“I really enjoy being an apprentice – both the learning side and the practical side of becoming a Joiner. I recommend anyone interested in doing an apprenticeship to choose one which is most suited to your experience, interests and qualifications.”

Edd Draper, Training Manager at The Guinness Partnership said:

“Providing apprenticeship opportunities is a key way of promoting skills development and increasing diversity across the construction and housing maintenance sectors.

“We are extremely proud of George and the progress he has made with his apprenticeship course.  He is an inspiration to anyone considering a trade career.”

 

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BANK OF ENGLAND REDUCES INTEREST RATES

Monetary Policy Summary, February 2025

The Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. The MPC adopts a medium-term and forward-looking approach to determine the monetary stance required to achieve the inflation target sustainably.

At its meeting ending on 5 February 2025, the MPC voted by a majority of 7–2 to reduce Bank Rate by 0.25 percentage points, to 4.5%. Two members preferred to reduce Bank Rate by 0.5 percentage points, to 4.25%.

There has been substantial progress on disinflation over the past two years, as previous external shocks have receded, and as the restrictive stance of monetary policy has curbed second-round effects and stabilised longer-term inflation expectations. That progress has allowed the MPC to withdraw gradually some degree of policy restraint, while maintaining Bank Rate in restrictive territory so as to continue to squeeze out persistent inflationary pressures.

CPI inflation was 2.5% in 2024 Q4. Domestic inflationary pressures are moderating, but they remain somewhat elevated, and some indicators have eased more slowly than expected. Higher global energy costs and regulated price changes are expected to push up headline CPI inflation to 3.7% in 2025 Q3, even as underlying domestic inflationary pressures are expected to wane further. While CPI inflation is expected to fall back to around the 2% target thereafter, the Committee will pay close attention to any consequent signs of more lasting inflationary pressures.

GDP growth has been weaker than expected at the time of the November Monetary Policy Report, and indicators of business and consumer confidence have declined. GDP growth is expected to pick up from the middle of this year. The labour market has continued to ease and is judged to be broadly in balance. Productivity growth has been weaker than previously estimated, and the Committee judges that growth in the supply capacity of the economy has weakened. As a result, the recent slowdown in demand is judged to have led to only a small margin of slack opening up.

In support of returning inflation sustainably to the 2% target, the Committee judges that there has been sufficient progress on disinflation in domestic prices and wages to reduce Bank Rate to 4.5% at this meeting.

Based on the Committee’s evolving view of the medium-term outlook for inflation, a gradual and careful approach to the further withdrawal of monetary policy restraint is appropriate.

In addition to the risks around inflation persistence, there are also uncertainties around the trajectories of both demand and supply in the economy that could have implications for monetary policy. Should there be greater or longer-lasting weakness in demand relative to supply, this could push down on inflationary pressures, warranting a less restrictive path of Bank Rate. If there were to be more constrained supply relative to demand, this could sustain domestic price and wage pressures, consistent with a relatively tighter monetary policy path.

The Committee will continue to monitor closely the risks of inflation persistence and what the evolving evidence may reveal about the balance between aggregate supply and demand in the economy. Monetary policy will need to continue to remain restrictive for sufficiently long until the risks to inflation returning sustainably to the 2% target in the medium term have dissipated further. The Committee will decide the appropriate degree of monetary policy restrictiveness at each meeting.

COMMENTS
David Hannah, Group Chairman of Cornerstone Tax
High interest rates have impacted the UK’s property market to an enormous extent. This has resulted in burdensome mortgage costs for first-time buyers, the collapse of supply within the private rental sector, unprecedented increases in rental and home-buying costs, as well as a record number of landlords leaving the market due to the soaring costs of managing their properties.
The decision today from the BofE does come as welcome news, however,  the monetary policy committee must aim for a 3-3.5% base rate to stimulate private development, incentivise first-time buyers and restart the private rental sector. David also offers expert analysis below on how today’s announcement impacts Britain’s property industry.

Rachel MacCutchan, Sales Director for Morris Homes:

“The Bank of England’s (BoE) interest rate cut is welcome news for prospective homeowners, helping to open up more opportunities for them on the property market.

“We’ve seen Barclays Bank react already by reducing its rates and expect more to follow, which will lead to more affordable mortgages, make houses more accessible, and increase confidence in the housing market.  

“The BoEs decision comes at a perfect time as we recognise New Homes Week, marking a positive move which will help people take their first step on the property ladder. At Morris Homes, we’re here to support them to do this.”

Nathan Emerson, CEO of Propertymark, comments:

“Despite widespread uncertainty and the Bank of England expecting inflation rates to increase to 2.8% by the third quarter of 2025 before easing again, today’s announcement comes as welcome news for many.

“It’s now likely that mortgage borrowing takes the same path and dips slightly which will, in turn, help ease the strain on people’s finances and improve their chances of homeownership. This extra boost in affordability and confidence is needed, and we look forward to hopefully seeing new and improved mortgage products enter the market over the coming weeks.”

 Daniel Austin, CEO and co-founder at ASK Partners, said:

“The Bank of England’s decision to lower interest rates to 4.5% marks a pivotal moment for the UK real estate market. While this move may provide some relief for borrowers, the broader impact will depend on how quickly lenders adjust mortgage rates and how sustained the rate-cutting cycle becomes. For homeowners and prospective buyers, lower rates should, in theory, make mortgages more affordable. However, the current market dynamics, where fixed mortgage rates have remained elevated despite previous signs of easing, suggest that any immediate impact may be muted. That said, a more stable rate environment could help restore buyer confidence, particularly among those who had been waiting for clarity before entering the market.

“For investors and developers, the trajectory of rate cuts will be crucial. With inflation now closer to the Bank’s 2% target, there is renewed optimism that financing conditions will improve, unlocking capital for new developments. Demand remains strong, particularly in sectors like co-living and build-to-rent, where supply constraints continue to drive investor interest. As we approach a potential shift in government policy and economic strategy, real estate stakeholders should remain agile. If rates continue to fall towards 3.5% by year-end, as some predict, this could fuel a more sustained recovery in transaction volumes and investment flows. However, uncertainty remains, and prudent financial planning will be key as the market navigates this transition.”

Peter Stimson, Head of Product at the mortgage lender MPowered, commented:

“What matters here is not the decision, it’s the vehemence with which it was taken.

“The markets had regarded a 0.25% rate cut as a nailed-on certainty. But what has raised some eyebrows is the strength of feeling among the Bank of England’s ratesetters.

“The only two dissenting voices on the Bank’s nine-member committee wanted to cut more, not less, off the Base Rate.

“All of which will lend credence to the idea that a flurry of further base rate cuts could be on its way. The swaps curve – which ultimately determines how lenders price their mortgages – is currently suggesting that we could see a further three base rate cuts by this time next year.

“Swap rates can ebb and flow, but nevertheless the fact that the markets are now anticipating three more cuts should enable lenders to start trimming the rates they offer customers.

“January is traditionally a time of intense rate-cutting as lenders slug it out for market share, but last month’s competition was relatively subdued. That could now change.

“Demand from borrowers is strong, and separate data from the Bank of England showed the number of mortgage approvals jumped unexpectedly in December. Today’s decision may not open the floodgates immediately, but competition could heat up sharply in the coming weeks as lenders battle for borrowers’ business.”

Jonathan Hopper, CEO of Garrington Property Finders, commented:

“The prospect of cheaper mortgages will give a decisive nudge to thousands of would-be buyers who kept their powder dry in 2024.

“In normal times a reduction in borrowing costs can prompt those planning a move to inch up their budget, and the result tends to be rising house prices. This time, not so much.

“While there is plenty of demand from buyers, the abundance of homes for sale is keeping price inflation in check.

“Many buyers remain intensely price-sensitive, and as they survey a market in which they’re often spoilt for choice even in prime areas, some are happy to walk away from homes they like but feel are overpriced.

“The Bank’s decision has tipped the scales further in favour of buyers, but the inflationary consequences may be more muted than usual.”

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Construction Activity Falters in January

All three categories of construction work see a reduction in output during January

Renewed downturn in construction order books Cost inflation accelerates to a 21-month high

A modest fall in total industry output was recorded at the start of the year, thereby ending a 10-month period of sustained expansion. Shrinking order books and rising cost pressures contributed to the weakest business activity expectations since October 2023.

At 48.1 in January, down sharply from 53.3 in December, the headline seasonally adjusted S&P Global UK Construction Purchasing Managers’ Index™ (PMI®) – an index tracking changes in total industry activity – registered below the 50.0 no-change threshold for the first time since February 2024.

Construction companies cited delayed decision-making by clients on major projects and general economic uncertainty had weighed on business activity at the start of 2025. A number of firms also commented on the impact of subdued market conditions in the residential building sector. Latest data showed that house building (index at 44.9) decreased for the fourth successive month and at the fastest pace since January 2024.

Civil engineering activity (44.6) declined at a relatively sharp rate, although this partly reflected disruptions from unusually wet weather at the start of the year. Meanwhile, output in the commercial construction category also returned to contraction in January (48.9). This was linked to a lack of tender opportunities and a reluctance among clients to commit to new projects.

January data pointed to a decline in incoming new work for the first time in 12 months. Although only modest, the rate of contraction was the steepest since November 2023. Anecdotal evidence suggested that a lack of confidence among clients and worries about the UK economic outlook had contributed to fewer sales enquires.

Purchasing activity decreased for the second month in a row, reflecting weak order books and a lack of new work to replace completed projects. Despite softer demand for construction products and materials, the latest survey indicated the steepest rise in input costs since April 2023. Construction companies noted that suppliers had sought to pass on rising energy, transportation and staff costs. Moreover, vendor performance deteriorated to the greatest extent for two years, which was partly linked to shipping delays.

Sub-contractor charges increased at an accelerated pace in January, with the rate of inflation hitting a 21-month high. This was despite a reduction in sub-contractor usage for the fifth time in the past six months. Construction firms meanwhile signalled renewed cutbacks to their staffing levels. Employment decreased for the first time since August 2024, but the rate of decline was only marginal.

Finally, around 38% of the survey panel predict a rise in business activity over the year ahead, while only 17% forecast a reduction. However, this pointed to the lowest degree of business optimism since October 2023. Survey respondents cited a post-Budget dip in confidence among clients, alongside weakening sales pipelines and the impact of lacklustre domestic economic conditions.

 

S&P Global UK Construction PMI®

Comment

Tim Moore, Economics Director at S&P Global Market Intelligence, said:

“UK construction output fell for the first time in nearly a year as gloomy economic prospects, elevated borrowing costs and weak client confidence resulted in subdued workloads.

“Output levels decreased across the board in January, with particularly sharp reductions seen in the residential and civil engineering categories.

“Construction firms noted the fastest fall in residential work for 12 months as market conditions remained somewhat subdued. Anecdotal evidence suggested that caution regarding demand for new projects was prevalent at the start of 2025, despite strong policy support for house building and hopes for a longer-term boost to supply via planning reform.

“The forward-looking survey indicators were also relatively downbeat in January. New orders decreased at the fastest pace since November 2023 amid many reports of delayed decision-making by clients. Reduced workloads, combined with concerns about the general UK economic outlook, led to a dip in business activity expectations to the lowest for 15 months.

“There was little respite on the supply front, as transport delays meant that vendor lead times lengthened to the greatest extent for two years. Demand for construction items softened again in January, but purchase price inflation was the highest since April 2023 as suppliers sought to pass on rising energy, fuel and wage costs.”

Josh Ward-Jones, director of Bloom Building Consultancy, commented:

“The warning lights on the construction industry dashboard have switched from amber to red.

“In fact there’s precious little to cheer about in January’s PMI data, which shows a clean sweep of negative trends. Both output and orders are down, cost pressures are rising and sentiment is sliding.

“For much of 2024, the weakness of the housebuilding sector was offset by the buoyancy of commercial construction. No longer. January’s headline figure slipped into contraction territory for the first time since last February.

“The pipeline of new work is starting to get patchy too. While the decline in new orders was modest, as the first reversal in 12 months it cannot be dismissed as inconsequential.

“Many are blaming the slowdown in demand on the hit to business confidence seen in the wake of last October’s Budget. Companies worried about their business prospects and the impact of April’s jump in Employer NI Contributions have been quick to pause or rein in capital spending.

“This slowdown is being reflected in construction firms’ sentiment too. The PMI survey found that just 38% of contractors expect business activity to increase over the next year – the lowest level since October 2023. As recently as a month ago, the figure stood at almost half.

“Yet while there has been a cooling in new construction work, demand for refurbishment and upgrade work remains brisker. And though cost pressures are eating into contractors’ margins, the Bank of England could offer some relief later today if it cuts interest rates as expected.

“Cheaper finance costs would be a welcome salve for an industry which has made a fragile and cautious start to 2025.”

Jordan Smith, technical director at Thomas & Adamson, part of Egis Group, said:

“The overall construction PMI reading falling into negative territory for the first time in nearly a year is not unexpected – accelerating cost inflation, weaker economic conditions, and higher borrowing costs have slowed the sector’s recovery. And, despite policy support for the likes of housebuilding and civil infrastructure, these are seeing some of the weakest levels of activity on the ground.

“Still, we expect to see further detail about the government’s spending plans in the coming months and would hope that this will provide much-needed stimulus to the sector – particularly areas that have struggled recently. It is also worth noting that, on balance, more firms continue to predict a rise in activity during 2025 than a fall.

“Similarly, we have experienced a strong start to 2025, with a pipeline of projects emerging throughout the year across various sectors. So, while the short-term picture remains a little unclear, there are good reasons to remain optimistic about the medium and long-term”

 

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In-depth safety video about neutral current diversion

SELECT releases new in-depth safety video about neutral current diversion as it continues to spearhead awareness campaign as part of 125th anniversary

 

Scotland’s largest construction trade association, SELECT, has continued its awareness campaign on the issue of neutral current diversion (NCD) by releasing an in-depth guidance video to help keep electricians and their customers safe.

 

Produced in partnership with the Institution of Engineering and Technology (IET), Safety Checks for Neutral Current Diversion delivers a step-by-step guide to the potential dangers of NCD, how to test for it and how to deal with it if discovered.

 

The 20-minute resource is now available to view on the SELECT YouTube channel and is the latest step in the trade body’s campaign to raise awareness of the issue as it celebrates its 125th anniversary as the world’s oldest electrical trade association.

 

Bob Cairney, Director of Technical Services at SELECT, said:

“NCD constitutes an unknown risk that has huge safety implications, so we are keen to equip electrical contractors with the necessary knowledge to identify it and take action where necessary.

“This video is designed to give an easy-to-follow overview of the issue, combined with practical steps to dealing with it safely and swiftly.

“We are grateful to the IET for their assistance in making this resource and hope it will be shared widely to help raise awareness further throughout the industry.”

 

Presented by Steven Devine and Darren Sweeney, the video explains how NCD occurs when protective measures fail and current is diverted via exposed metal fixings such as gas, water and oil pipes. Identified as a particular issue in multiple occupancy buildings, the duo explain how this can lead to a build-up of heat that could result in fire or explosion.

Steven and Darren then demonstrate a range of tests for NCD, highlighting the many factors that contractors should be aware of, before the video ends with an animated testing walkthrough, adapted from SELECT’s original flowchart.

Mr Cairney added:

“As well as our colleagues at the IET, we would also like to thank all the other senior figures from across the industry who have contributed feedback and technical insights during the video’s creation.

“As Scotland’s largest construction trade body, we are committed to the safety of electricians and their customers and will continue to lead the way with further resources and information to raise awareness about the issue of NCD.”

 

The video follows a suite of practical NCD resources produced by SELECT for members, apprentices and trainees, including posters for workshops and training centres, a digital flowchart and a pocket-sized foldout designed to be kept in toolboxes.

 

NCD was also one of the key topics at the association’s Toolbox Talks in 2024, with briefings delivered to hundreds of contractors across Scotland.

The activity also inspired West Lothian College lecturers Thomas Barlow and Scott Cavanagh to devise and build their own interactive fault board that gives young learners the chance to learn how to test for NCD.

 

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Meeting Edinburgh’s Housing Demands

The UK’s leading social enterprise, Places for People, has secured land on the outskirts of Edinburgh to bring forward over 1,300 new homes.

The organisation who supplied over 1,700 new homes in the last year acquired the 110-acre site from Murray Estates in its ambition to deliver more new homes to meet rising demand across the Scottish capital.

Situated west of the city centre, the site provides fantastic transport links as well as education, leisure and employment opportunities nearby.

Colin Jack, Regional Managing Director – Scotland of Places for People Developments, comments:

“The City of Edinburgh and the Scottish Government have declared a housing emergency. This is a sign that for too long Scotland has failed to address our chronic shortage of homes being built. We are ready to help address this, and it is why we’re thrilled to play a part in developing the west of Edinburgh. This site will see over 1,300 new homes being brought forward in much needed mixed-tenure communities. Using our team’s extensive housebuilding background, we can create communities that last for generations to come.”

Taking the principles of new town living, Places for People are preparing a Masterplan for the site in line with the Edinburgh City Plan 2030 which could include, but is not limited to:

  • A broad mix of housing types to suit local needs from 1-bed apartments up to 5-bed family homes
  • Over 1,300 new homes delivered across the site
  • A substantial number of new homes built will be affordable homes across a range of tenures
  • Plenty of useable greenspace with a landscaped linear park running through the development
  • New employment opportunities during the ten-year construction period as well as after
  • New educational provisions, including a primary school
  • Greater connectivity to the city centre through improved links to cycles paths along with tram, train and bus routes.
  • Local commercial centre

David Murray, managing director of Murray Estates’ owner Murray Capital, said:

“As a family business that has owned this site for 40 years, we’re pleased to see our vision for Redheughs taken forward by an organisation committed to creating sustainable, high-quality communities.

“It’s nearly 10 years since we first applied for outline planning approval, so this transaction also unlocks capital that we can invest in new projects that support our ambitions as a patient, entrepreneurial business.

“This is the first phase of the broader Edinburgh Garden District, which is a key part of the western expansion of the city. We look forward to seeing west Edinburgh come to life and contribute thousands of new homes the capital so desperately needs. We retain other strategic land holdings in the area – including 500 acres of the Garden District – and will look to develop options for these over the coming years.”

As a social enterprise, Places for People will also look to boost social impact activities across Scotland. In addition to promoting apprenticeships, local labour schemes and training opportunities through the development, they will look to supplement existing schemes in Edinburgh including the Hays Community Pantry and the Tools for Equity project. In partnership with their subsidiary Places Leisure, they will also deliver additional physical activity sessions, extend the Relational Mentoring Project in partnership with Wise Group and form new partnerships with charities to address challenges in local communities.

Colin concludes:

“With the scale of our organisation, we know how important access to affordable housing is and our unique model supports us in delivering places that allow people to flourish. We don’t just build homes; we create communities that allow people to connect. Through our partnerships with local charities and businesses we strive to bring a place to life and ensure the community has access to services and resources that they need. We will now work closely with Edinburgh City Council to bring our aspirations to fruition.”

Plans will see homes being built from Summer 2026.

 

 

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Prison Sentence for £22 million fraud against the taxpayer

Seven construction company connected insiders have been sentenced for their key role in a £22 million fraud against the taxpayer.

Daniel Newton, 38,  Philip Bailey, 36, Sean Dean, 41, Lee Hudson, 56, Sarah Gillard, 41, Bradley Mortimer, 39, and Kevin Ratcliffe, 43, have been sentenced to nine years and four months imprisonment, six years and three months imprisonment, seven years imprisonment, five years imprisonment, two years imprisonment suspended, three years and six months imprisonment, and 27 months imprisonment, respectively for cheating the public revenue, money laundering related offences, acquiring criminal property and organised criminal gang activities.

The Crown Prosecution Service worked closely with Kent Police and HMRC to build a case for trial that showed that the defendants were involved in the setting up of a building construction core company which invoiced customer companies for supply of labour which included VAT elements on these bills.

The customer companies would pay these invoices but the construction company would not pay the VAT and Construction Industry Scheme contributions to the HMRC, part of His Majesty’s Treasury. It is estimated that there was a loss to the Government and taxpayer of £22 million.

The unpaid VAT and scheme contributions were diverted to the bank accounts of the defendants who were beneficiaries of these fraudulent actions.

The beneficiaries included the lead conspirators Philip Bailey, Daniel Newton, and Sean Dean who were responsible for establishing, maintaining, and developing these crimes. Kevin Ratcliffe was a customer company director who received ‘kickbacks’ in exchange for providing their business to the core company. Lee Hudson was an office worker who was conducting the day-to-day business which enabled these offences. Sarah Gillard and Bradley Mortimer functioned as cash couriers for money laundering for these illicit activities.

Julius Capon of the Crown Prosecution Service said:

“These criminals stole £22 million from the taxpayer. Fake payroll companies were created and operated by Bailey, Newton, Hudson, and Dean.

“Construction companies would permit these payroll companies to make VAT and Construction Industry Scheme (CIS) contributions to HMRC on behalf of their sub-contractors.

“Instead of the VAT and CIS contributions being paid to HMRC, the defendants pocketed the monies themselves.

“The defendant Ratcliffe owned a construction firm which received cash ‘kickbacks’ for assisting in this illegal enterprise of cheating the revenue. The defendants Gillard (partner of Philip Bailey) and Mortimer laundered the proceeds through their bank accounts.

“This is money that is needed to help support our hard-pressed public services.

“The CPS has commenced proceeds of crime proceedings against the defendants to claw back the money they made from this illegal scheme.”

Ian Hackett, Operational Lead, in HMRC’s Fraud Investigation Service, said:

“We have worked closely with Kent Police to dismantle this sophisticated and complex fraud.

“The tenacity and expertise of the investigators involved in this joint investigation has protected millions of pounds of taxpayers’ money, which is needed to fund our public services.

“We encourage anyone with information about any type of tax fraud to report it to HMRC. ”

Our specialist prosecutors will continue to work closely with investigators such as HMRC to prosecute cases of public sector fraud and bring perpetrators to justice.

 

Source: Crown Prosecution Service

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Green Belt Initiative Deemed Ineffective

Lord Moylan, Chair of the Built Environment Committee, has sent a letter to the Deputy Prime Minister summarising the findings of the Committee’s inquiry into the grey belt.

Key findings

Key points from the committees letter include:

  • In 2024, the new Labour government outlined its ambitious plans to address the housing crisis by building 1.5 million new homes. To meet this target, significant changes to the planning system are being made, and the preservation of the Green Belt has been identified as one source of friction which impedes housing development. 

 

  • Published in July 2024, the Government’s draft National Planning Policy Framework (NPPF) proposed designating some areas of the Green Belt as ‘grey belt’ land if they do not sufficiently meet the five defined Green Belt purposes (such as reducing urban sprawl and preserving the character of historic towns). This policy had the potential to release useful land for housing developments. 

 

  • However, the final NPPF, published in December 2024, included revisions to the original proposal that may have rendered the grey belt policy largely ineffective, concludes an inquiry by the Built Environment Committee under the chairmanship of Lord Moylan.  

 

  • The grey belt policy has been introduced at the same time as many other planning policy initiatives, and the interaction of these policies is creating uncertainty for developers, landowners, and already overstretched local authorities.  

 

  • There is also significant uncertainty about the potential number of homes that could be built on grey belt land, with forecasts ranging from 50,000 to 4 million. Moreover, the Committee was concerned that there was no mechanism for tracking progress against the Government’s target of 1.5 million new homes over the next five years.

 

  • The sustainability of housing developments on grey belt sites is crucial to their success, although clear definitions of sustainable locations and modes of transport are missing from the final NPPF. The proximity of grey belt developments to public transport is of particular concern to those who gave evidence to the Committee, but the NPPF does not give sufficient detail on its plans for connectivity and transport infrastructure around these sites. 

 

  • The Committee found that, in principle, the original grey belt proposal had the potential to make a significant contribution towards meeting the Government’s housing targets. However, the cumulative impact of other recently introduced planning policy initiatives, is likely to result in the grey belt policy having only a marginal impact at best. 

Chair’s comments 

Lord Moylan, Chairman of the Built Environment Committee during the inquiry, said: 

“Last autumn our committee launched this inquiry into ‘grey belt land’ because the committee believed that this new category could make a positive contribution to meeting housing targets.”  

“The Government’s policy been implemented in a somewhat rushed and incoherent manner. The committee does not believe that it is likely to have any significant or lasting impact on planning decision-making or helping the Government achieve its target of building 1.5 million new homes by the end of this Parliament.” 

“In December the Government published the final NPPF and the revisions it has made to the framework have now made the concept of grey belt land largely redundant as land will now be more likely to be released from the Green Belt through existing channels instead.” 

“The Government also does not seem to have any plan to measure progress or determine the success of this policy. Effective policy must be evidence based and be able to demonstrate its efficacy. Sadly, this is not the case here.” 

Source: UK Parliament

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