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£45 million funding boost to support councils unlock land for thousands of homes

A £45 million cash injection into key community projects will help kick-start the building of thousands of new homes, Housing Minister Dominic Raab has announced.

As part of government’s drive to get Britain building homes again, a total of 79 projects from Newcastle to Plymouth will receive funding to support building up to 7,280 homes on council owned land.

To support local councils to meet their ambition to unlock enough of land they own for at least 160,000 homes by 2020, they will be able to use the Land Release Fund money to combat barriers which would otherwise make land unusable for development.

The projects – which aim to support building strong communities – include a range of necessary works such as asbestos removal and bat alleviation, as well as schemes that will significantly improve quality of life such as essential relocating of a pelican crossing.

This move comes 2 weeks after the projects set to benefit from the first wave of funding from the £5 billion Housing Infrastructure Fund were announced, helping to get up to 200,000 homes off the ground through investment in local housing projects. This is part of the government’s comprehensive strategy of planning reform and targeted investment to build 300,000 homes a year.

Housing and Planning Minister Dominic Raab said “We are investing £45 million to build roads and provide utilities, so councils can release the land to get up to 7,280 new homes built.

“It’s part of our strategy to build the homes Britain needs, and carry local communities with us.

“We’re determined to make buying or renting more affordable for young families and those on low or middle incomes.”

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MP’s vote to leave Parliament for £5.6bn refurbishment

MPs have voted to vacate the Palace of Westminster while a proposed multi-billion pound modernisation of the historic building ensues.

The Commons approved a motion calling for a “full and timely decant”, designed to allow essential repairs, by 236 votes to 220.

The move, part of a proposed £5.6bn refurbishment, is not expected to take effect until 2025 at the earliest.

A brief history

Completed in the 1860s, the Palace of Westminster is an iconic building that currently houses the British Parliament. It is a world famous and instantly recognisable structure and stands as a celebrated international symbol of our parliamentary democracy. Just as UK Parliament is constantly in a state of flux, so too has the building; adapting accordingly to suit its primary and functional purpose. Taking massive damage during the WWII blitz, the Houses of Parliament were repaired as a matter of utmost national priority post-1945. The project was seen as a real opportunity to create some much-needed new facilities that would be consistent with the original design.

From the 1960s onwards the requirement for individual Members of Parliament to have offices, coupled with the expansion of other parliamentary services led to the acquisition of additional buildings and the Palace became the core of a much larger Parliamentary Estate. In 1992 responsibility for maintaining the Palace ‘on behalf of the nation’ transferred from the Government to Parliament itself. How did this work out?

Fighting a losing battle

It appears that since 1992, every effort has been made to maintain what is ultimately an outdated and increasingly unsuitable infrastructure. Services such as heating, cooling, water, sewage, electricity and cabling have been kept semi-functioning, but have not been modernised. Astoundingly, there has been no real general renovation of the building and its services since the partial rebuild of 1945-50 – some of the services even predate the war. The original basements and vertical shafts that litter the building are now completely filled with pipes and cables, making further work difficult to carry out – which results in further expense.

Reports illustrate that asbestos features heavily throughout the palace and although asbestos remains safe if treated with great care in compliance with safety regulations, it makes any intervention so much more difficult. Another issue is that most of the work undertaken over the last 50 years is largely undocumented and since many areas are inaccessible, the state of dilapidation and subsequent risk is mostly uncharted. The building is completely at the mercy of fire, with little modern safety practices in place and fire compartmentation considered almost impossible.

The original roofs are no longer watertight and there are many areas plagued with penetrating damp, damaged by interior leaks and flooding.

      Read more: Radical concept for temporary floating parliament unveiled

Today, an influential committee is expected to recommend that MPs and peers should abandon the crumbling Houses of Parliament for six years so that drastic refit works can be carried out.

The cost

So now at the crux of the issue, how much does it cost to renovate a 150 year old Grade I listed building which is partly sinking, contains asbestos and has outdated cabling? The short answer is ‘a lot.’ The sheer amount of work and the sensitive nature of refurbishing a World Heritage Site results in a sky-high estimate of £5.6bn, with some suggesting the sum could rise to as much as £7.1bn.

A 2012 report warned that “major, irreversible damage” may be done to the building unless significant restoration work is carried out soon, making the refurbishment one of the most urgent and arguably important renovation projects in the UK today. Some feel that the whole thing is a needless expense to the taxpayer and a vanity project for British Parliament. Another previous report concluded that the maintenance costs alone are so astronomically high that if the Palace of Westminster was a commercial structure of no historical significance, it would be far more cost-effective and efficient to demolish it and rebuild using modern methods of construction, such as modular offsite building.

Whatever you stance, the Houses of Parliament are of national, historical and cultural importance and refurbishment will happen.

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Boosting construction productivity could deliver £15 billion savings every year

New plans set out by the Department for Transport will revolutionise British infrastructure and boost the construction sector’s productivity in a move that could generate savings of £15 billion a year.

The plans were revealed alongside the National Infrastructure and Construction Pipeline, which sets out projects for the next 10 years.

This £600 billion pipeline includes both public and private investment. It will give certainty to industry that there is great appetite to develop infrastructure and will encourage the sector to invest in the right technology and skills to meet this demand.

The Transforming Infrastructure Performance programme sets out how the government will ensure these projects are delivered swiftly and efficiently. It contains ambitious plans to transform infrastructure delivery over the long-term, using the government’s influence to drive modern methods of construction so Britain can lead the world in high-tech building. The Transport Infrastructure Efficiency Strategy sets out how these lessons will be applied to drive efficiency and productivity in transport.

Andrew Jones MP, Exchequer Secretary to the Treasury, said “We are backing Britain with a record amount of infrastructure investment as we build an economy fit for the future. That’s why we’re working with the industry to skill up and scale up for the challenges ahead.

“Investing in infrastructure boosts productivity for the economy as a whole. The scale of the investment we are talking about here will deliver a step change for our country.”

Transport Secretary Chris Grayling said added “We’re undertaking the most ambitious improvements in our transport network this country has seen for decades. But we must also drive forward plans to ensure these infrastructure projects are completed on time and on budget.

“World-leading projects such as Crossrail, the Ordsall Chord and the huge investment programme in our major roads show that Britain can deliver on time and on budget, boosting jobs and growth and creating new opportunities across the nation. But we want to do better. This strategy shows the way and sets out our standards for how we will do more and better in future.”

The government is a major player in construction and delivers many projects every year, such as transport, schools, prisons and hospitals. This accounts for a quarter of all construction projects, and using this purchasing power will enable ministers to drive innovation and encourage firms to invest in modern methods and technology.

Methods such as off-site manufacturing, where projects are part-constructed before being assembled on location, can boost productivity by reducing waste by 90% and speed up delivery times by more than half (60%). For example, a school that typically takes a year to build could be done in just over 4 months.

The announcements tackle this head on and give the sector the certainty to start investing in the right technology and skills.

Tony Meggs, Chief Executive of the Infrastructure and Projects Authority (IPA), said “Publishing our Transforming Infrastructure Performance (TIP) programme demonstrates our commitment to tackling the annual £15 billion productivity gap in construction. The IPA has a significant role to play in helping to create a more productive and innovative sector.

“We want to maintain confidence in the sector and will work alongside industry, using our purchasing power to drive the adoption of modern methods of construction in both new and existing infrastructure. The scale of ambition is great but by aligning our initiatives we can work with industry to deliver transformation for the sector.”

Andrew Wolstenholme, Co-Chair of the Construction Leadership Council (CLC), said “The Transforming Infrastructure Performance programme presents a huge opportunity for the industry and government to reap the economic gains from improving productivity during the delivery of the UK’s £600 billion infrastructure pipeline. Transport is a huge part of that.

“I am delighted that the IPA, DfT and CLC are working closely to encourage construction clients to procure on the basis of whole life value, deliver more industry led innovation, develop the skills we need for the future and give the UK a competitive advantage in exporting new technologies and expertise. I am proud to chair the Transport Infrastructure Efficiency Taskforce which will ensure these strategies are brought to life across the transport sector.

“It all adds up to better economic and social infrastructure, as well as more homes, delivered quicker, at better value and more sustainably than ever before, underpinning the UK’s growth and providing jobs all over the UK.”

 

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Housebuilding soars to highest levels in almost a decade

The number of new build homes that have started to be built has surged to the highest level since 2008, as shown by government figures.

The latest housebuilding data shows that 164,960 new homes were started in the year to June 2017, up 13% on the previous year, and have increased by more than three-quarters since the low in 2009.

More than 153,000 new homes have been completed during the same period, showing an increase of 11% compared with the year before.

Housing and Planning Minister Alok Sharma said “Building more homes is an absolute priority for this government. Today’s figures are proof that we are getting Britain building again, with new housing starts reaching record levels since 2009.

“It’s vital we maintain this momentum to deliver more quality homes in the places that people want to live. Our housing white paper set out an ambitious package of long-term reforms to do just that.”

The figures demonstrate strong growth in housebuilding right across the country, with Gloucestershire, South Derbyshire and South Norfolk amongst the strongest areas in delivering high levels of starts.

The government’s housing white paper sets out bold new plans to fix the broken housing market and build more homes across England.

At Autumn Statement, an additional £1.4 billion investment was announced for the government’s affordable housing programme, increasing the total budget to £7.1 billion. Since 2010, almost 333,000 affordable homes have been delivered, including 240,000 affordable homes for rent.

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Latest large-scale government fire safety test result published

The latest in the government’s series of fire safety tests of cladding and insulation combinations has been completed by the Building Research Establishment (BRE).

These large scale tests will allow experts to better understand how different types of cladding panels behave with different types of insulation in a fire. The results of the first 5 tests have already been published.

This additional test was of a wall cladding system consisting of Aluminium Composite Material (ACM) cladding with a fire retardant polyethylene filler (category 2 in screening tests) with phenolic foam insulation.

The government’s expert panel advises that the results show that the combination of materials used in the test does not meet current Building Regulations guidance.

Initial screening tests have identified 22 buildings over 18 metres tall in England known to have a combination of ACM with a fire retardant polyethylene filler with phenolic foam insulation. Cladding samples from each of these buildings had already failed earlier combustibility tests conducted by BRE and their owners were sent government advice detailing the immediate interim safety measures that needed to be completed. Appropriate measures have been put in place for all 22 of these buildings.

Government has also provided these building owners with additional detailed advice setting out the actions they need to take to ensure the safety of residents going forward. Government is working closely with these building owners to ensure this advice is being followed.

The series of large-scale tests initially included 6 combinations of cladding systems. On 8 August 2017, the government announced that on the advice of the expert panel it would undertake a further large-scale test of ACM with fire retardant polyethylene filler (category 2 in screening tests) with phenolic foam insulation. This is to further build the evidence available for experts and building owners so they can make informed safety decisions.

Results of the final large-scale test (ACM with a limited combustibility filler with mineral wool insulation) – and consolidated advice to landlords based on all the 7 tests – will be published shortly.

The government announced an independent review of building regulations and fire safety on 28 July 2017. This forward looking review will examine the regulatory system around the design, construction and on-going management of buildings in relation to fire safety as well as related compliance and enforcement issues.

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Expert panel recommends further tests on cladding and insulation

Large scale tests will help establish how different types of ACM panels in combination with different types of insulation behave in a fire.

The independent expert panel on safety has advised further testing as the next step to be conducted in helping landlords to ensure the safety of their buildings.

These large scale tests will help establish how different types of Aluminium Composite Material (ACM) panels in combination with different types of insulation behave in a fire.

The results of these tests will help landlords make decisions on any further measures that may need to be put in place to make their buildings safe following the Grenfell Tower fire. These tests will be undertaken by the BRE and will not require any new samples from buildings.

Earlier this week the panel brought together a group of technical experts from a wide range of professions and organisations. The group discussed the processes that had been followed to identify whether buildings had ACM panels and the advice provided to building owners on interim measures and agreed that these were the right first steps.

The further tests – which will look at 3 different types of ACM cladding combined with different types of insulation – will be in accordance with British Standard 8414 in line with the panel’s advice. This involves building a 9 metres tall demonstration wall with a complete cladding system – including panels and insulation – fixed to it, and then subjecting it to a fire that replicates a severe fire in a flat breaking out of a window and whether it then spread up the outside wall.

In addition, the Expert Advisory Panel recommended issuing further practical advice on immediate steps landlords can take to identify their wall materials including insulation, which will be published shortly.

The government has now commissioned the Building Research Establishment to undertake these tests as a matter of urgency. The results will be made publically available. Landlords will be expected to take their own professional advice on what is required for their buildings in the usual way.

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RIBA urges next Government to Build a Global Britain

The next Government must build new communities across the country and keep secure the UK’s position as the global leader in architecture and design innovation says the Royal Institute of British Architects (RIBA) in its General Election manifesto published today (Thursday 25 May).

RIBA’s ‘Building a Global Britain’ manifesto says the UK must:

  • Grow as a global trading nation –ensuring the existing mutual professional recognition agreement with the EU is maintained as part of the Brexit negotiations and that new mutual recognition agreements are developed with other key trading nations including the United States, Canada, Australia and New Zealand.
  • Put local people at the heart of the planning system – delivering powers on housing and planning to regional and Metro Mayors so cities and regions can deliver more.
  • Deliver many more good quality homes that meet the needs of society – perusing development of new high-quality, affordable homes that alleviate the housing crisis and unstick some of the UK’s productivity problems.
  • Build schools that are better spaces for learning –ensuring better design of public buildings like schools, museums and hospitals to inspire communities and make the best use of scarce public money.
  • Show greater leadership in resilient infrastructure – Supporting innovation in flood defences to catalyse the UK’s export potential in new technologies.

RIBA President Jane Duncan said “People across the country will be keen to see how political parties respond to the challenges and opportunities of these changing times. Our political leaders recognise the need to improve quality of life across the country; they can start by supporting a better built environment. The RIBA’s manifesto outlines how the next UK Government can ensure that our communities have great high quality, sustainable places in which to live, work and play.
“The UK has a thriving architecture sector delivering inspiring buildings and places across our great nation and around the world. Our multibillion pound contribution to the UK economy and to the country’s reputation abroad is highly prized, and our universities train and equip the architects of the future.

“Whomever forms the next UK Government must recognise the strength and importance of our global cultural links and influence, and continue to support us by safeguarding our ability to attract the brightest and best talent from around the world, as well as ensuring post Brexit that architects practising in the UK are in an environment where they can thrive.”

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Offsite construction expected to feature in Housing White Paper

Communities Secretary Sajid Javid will set out the details of the housing White Paper in a statement to MPs today. The Minister admitted that the current market is “broken” and if we are to fix it we need to consider modern methods of construction such as offsite and modular.

Javid’s speech intends to highlight the need for more homes (at least 250,000 new homes each year) as a matter of priority. Over the weekend Housing Minister Gavin Barwell admitted that the government were currently behind schedule on its goal of building one million new homes in England by 2020.

When unveiling the paper, Javid will say: “Walk down your local high street today and there’s one sight you’re almost certain to see. Young people, faces pressed against the estate agent’s window, trying and failing to find a home they can afford.

“With prices continuing to skyrocket, if we don’t act now, a whole generation could be left behind. We need to do better, and that means tackling the failures at every point in the system.

“The housing market in this country is broken and the solution means building many more houses in the places that people want to live.”

In an interview with BBC Radio 4, the Communities Secretary also indicated the need for a shift in focus on increasing home ownership, an ambition of most post-war Conservative governments. He said “It is a false choice. The reality is we need more homes, whether to rent or buy.”

The White Paper is expected to contain the following measures for meeting demand:

  • A £3bn fund will allow housing associations and councils to fully utilise the skills and facilities of smaller building firms, including support for modern methods of construction, such as modular and offsite
  • Councils will be required to provide the government with an up-to-date plan for housing demand
  • The delivery time for housing will reduced from three to two years between planning permission being submitted and construction works beginning
  • Green Belt is expected to be protected, only to be built on in exceptional circumstances
More on this following the release of the paper later today.
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“Modernise or die”, warns Government-commissioned review

Britain’s construction industry faces “inexorable decline” unless radical steps are taken to address its longstanding problems, according to an independent review commissioned by two Government departments.

The Farmer Review of the UK Construction Labour Model highlights construction’s dysfunctional training model, its lack of innovation and collaboration as well as it’s non-existent research and development (R&D) culture. Low productivity continues to hamper the sector, while recent high levels of cost inflation, driven by a shortage of workers, has stalled numerous housing schemes as they have become too expensive to build.

Led by Mark Farmer, chief executive of Cast, a real estate and construction consultancy, the hard-hitting report says we need to better align the needs of construction firms and the businesses who hire them.

“If you buy a new car, you expect it to have been built in a factory to exacting standards, to be delivered on time, to an agreed price and to a predetermined quality” said Farmer. “This needs to happen more in construction, so that the investors, developers or building owners hiring construction firms increasingly dictate the use of modern methods of delivery and invest appropriately in the skills agenda to grow this part of the industry. There are more similarities between manufacturing and construction than many people are led to believe and this perception needs to change, starting in the housing market.”

One recommendation set out for the medium term is a “carrier bag charge” style behavioural deterrent scheme. This would levy a tax on businesses who buy construction work in a way that doesn’t support industry innovation or skills development. Clients could face paying a suggested levy equal to 0.5 percent of a scheme’s construction cost but would have the ability to avoid paying this tax completely by commissioning construction in a more responsible way.

Farmer, a 25-year veteran of the industry, and former partner at EC Harris, said the industry needs to be far more joined-up with its clients in how it approaches R&D and skills. He also wants ministers to directly intervene in certain areas to ensure many of the issues identified are rectified.

Commissioned by the Department for Communities and Local Government and Department for Business, Energy and Industrial Strategy, Farmer has made 10 recommendations which include:

  • Using the residential development sector as a pilot programme to drive forward the large scale use of pre-manufactured construction, for example, through off-site built or modular housing.
  • A wholesale reform of the current Construction Industry Training Board (CITB) and its related levy system, including a new mandate to properly fund and drive forward both appropriate skills development and innovation to suit a modern progressive industry.
  • Government to use its education, fiscal, housing and planning policy measures to initiate change and create the right conditions that will support the construction sector’s modernisation.

With more people leaving the industry each year than joining, the construction workforce is shrinking, placing increasingly severe constraints on its capacity to build housing and infrastructure. Reliance on a fractured supply chain and self-employment also means there is little incentive for contractors to invest in long term training for the labour force.

The situation is exacerbated by the fact that many school leavers and graduates don’t view construction as an attractive career choice. A YouGov poll earlier this year found that two-thirds of Britons wouldn’t consider a career in construction. If Brexit results in reduced migrant labour, the situation could be made even worse.

Crucially, it hasn’t raised its productivity in decades so urgently needs to explore ways to make the work less labour intensive, such as through offsite construction. This, in turn, could make a career in the sector more attractive for young people by moving the work from building sites to digitally enabled working in factories.

Industry Minister Jesse Norman commented “This Government is determined to support more housebuilding, more quickly and in the places people want to live. Given the launch of the £3 billion Home Building Fund, Mark Farmer’s important review in this vital sector is very timely. It makes a strong case for change in the industry, identifies areas where it needs to improve, and sets out areas for action. We will now carefully consider his recommendations.”

Paul Stanworth, Managing Director of Legal & General Capital added “This review sets out a clear way for the construction sector to reinvent itself in order to meet the ever-growing demand for homes and infrastructure. With such a chronic shortage of homes in the UK, we see rapid evolution as a “must have” for the industry, not just a “nice to have”. Having identified such a requirement, Legal & General is helping to address this problem by investing in a modern factory to produce homes using manufacturing processes seen in the production of cars and other consumer goods. This construction method is safe, clean, and fast, providing a high level of consistency and durability. We sincerely hope that Farmer’s review galvanises the entire sector to invest in innovation and secure its future.”

Download the full report here.
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£5bn Government injection to help small builders

At the Conservative Party conference in Birmingham this week, Communities Secretary Sajid Javid and Chancellor Philip Hammond revealed that the government are planning to make new money available for builders in the UK.

This will consist of a £2bn Accelerated Construction scheme to make publicly-owned brownfield land available for quick development and the already announced £3bn Home Builders Fund, which seeks to help fund the development of 25,500 homes by 2020.

How it will work

The intention of the new funding is to provide short-term loans for small builders, which will be borrowed from the public sector. This will help them build quicker as public land will be made available with outline planning permission already available to them and money will enable them to undertake any required remediation work on the brownfield sites prior to construction starting.

The ministers are also urge builders to use modular technologies to meet housing demand, as it will shorten the delivery time.

Redevelopment

At the conference the ministers also confirmed that they are also pushing ahead with allowing office blocks to be repurposed or replaced entirely with residential developments. This alone has the potential to create 4,000 homes by the start of 2022.

Chancellor Philip Hammond commented: “There has been a housing shortage in this country for decades, and this Government is determined to take action to tackle it. “We’ll use all the tools at our disposal to accelerate housebuilding and ensure that, over time, housing becomes more affordable. That is why we are committing £2 billion of additional investment towards this.”

Sajid Javid concluded: “Tackling the housing shortfall isn’t about political expediency. It’s a moral duty. And it’s one that falls on all of us. Not just in Parliament, but in business, in local government and in our communities. So my message today is clear: it’s time to get building.”

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