industry news At a glance...
SMALL LAND SITES COULD SOLVE
HOUSING CRISIS Reusing small empty sites of up to two hectares could more than meet the UK’s housing demand without building on green field land. This must be coupled with upgrading existing buildings, reclaiming and remodeling empty buildings, converting and upgrading homes to make existing neighbourhoods attractive. These are key findings from a new research report commissioned by the Federation of Master Builders (FMB) from the London School of Economics and Political Science (LSE). This approach would generate local jobs but requires new skills, more training and apprenticeships, the report argues. The report highlights that there is capacity within existing communities to create all the new homes we need. Small available sites of under two hectares within built up areas are rarely counted and micro-sites of half an acre of less are literally too numerous to count. Yet it is estimated that even in inner London, where population density is highest and land scarcest, there are enough micro-sites to supply all the new homes we need.
UK HOUSE BUILDING LEVELS RISE
House building levels across the UK rose during May 2010, according to the latest NHBC statistics. During March to May 2010, 32,352 new homes were registered across the UK. This was a 68 per cent increase on the same three month period in 2009 (19,286), indicating continued year-on-year solid improvement across the sector. Registrations during May 2010 (10,870) were also 56 per cent higher than in May 2009 (6,953). Imtiaz Farookhi, chief executive of NHBC, commented: "Despite the impact of the general election and the political uncertainty that surrounded it, NHBC's figures show that the number of homes being built in the UK is continuing to improve at a steady rate.
Construction Concern at £100 Billion Loss in Capital Programme
Whilst acknowledging the need for a tough Budget to establish a credible path to restore the country’s public finances, the Construction Products Association has expressed concern that the reduction in capital spending, which will fall to just 1.25% of GDP, will hold back the pace of the economic recovery. In total Capital investment will be cut by £100bn over the next five years. Commenting on the Chancellor’s Statement, Michael Ankers, Chief Executive of the Construction Products Association said; ‘ Whilst there may be some relief that the Chancellor did not make further cuts in capital spending from those already announced by the last government, the impact of what is set out in this Budget should not be underestimated. In 2014/15, capital spending
will have fallen by a third since 2009/10. At this level it will be very difficult to maintain the built environment of this country in its current condition. As the Chancellor acknowledges the government will need to be very careful in making choices as to how this capital is spent in order to make sure that it is focused on those projects, such as transport and energy, that will most effectively contribute to the economic recovery.’ In other Budget measures, the Association welcomed measures to create an environment in the UK that helped business succeed. ‘We welcome the plan to reduce Corporation Tax as well as measures to help small businesses at a time when they are facing enormous pressures. We had, however, hoped for positive steps to ensure credit
is more widely available at competitive rates, especially from those banks that are substantially in public ownership.’ ‘One of our major disappointments is that the Chancellor has done little to stimulate the low carbon agenda. A VAT increase was widely anticipated but we hoped that he might have tempered this by updating and expanding the list of those products and solutions that will improve energy efficiency in people’s homes such as more efficient heating systems and double glazing. It seems perverse that at a time when government wants to be seen as ‘the greenest ever, it should continue to set a VAT rate of 5% on the energy that we consume, but an increased rate of VAT on the means by which people can reduce their energy usage.’
Construction skills in recession
Results from the Chartered Institute of Building’s (CIOB) fourth annual skills survey show that the industry is suffering from a skills shortage despite the recession. 72% of respondents believe there is a skills shortage in construction. The lack of apprentice recruitment is emphasised by 67% as the biggest threat to the future skills agenda. Furthermore, 52% of the
sample reported that the recession has resulted in a decline in apprentice recruitment. Insufficient education about construction at school-level was reported by 47% of respondents as the second-biggest threat to the future skills agenda, while an ageing workforce was underlined by 46% as the third- biggest threat. Michael Brown CIOB Deputy Chief Executive
said, “Future investment for the industry is clearly essential. But it will be pointless if we do not have a skilled industry capable of delivering projects, and that means the industry must find ways of retaining, developing and recruiting its future human capital. Respondents called for apprenticeship and graduate schemes to be aimed specifically at the industry. This could suggest a lack of awareness, or relevance, of the current range of initiatives already on offer.”
4 British Builder & Developer
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