INDUSTRY NEWS 11
CLG Select Committee: Mark Farmer responds
reports on the Accelerated Construction Programme and also urge government to back a single quality assurance scheme for offsite construction which makes it easier to fund and supports mainstream acceptability. Interestingly the Select Committee also highlight the need for the construction industry's reliance on migrant labour to be recognised in the upcoming Brexit negotia- tions in order to make sure that the deal Britain gets doesn’t worsen the trends already found in the industry. If the recommendations set out in this
Mark Farmer, the author of the government-commissioned Farmer Review into the construction industry, reponds to the CLG Select Committee report on current capacity in the housebuilding industry.
This report from the Communities and Local Government Select Committee on the capacity of the homebuilding industry has clearly ratified the fact that the indus- try faces some huge challenges in order to meet this country’s increased need for more homes. The conclusions confirm, as has the
recent White Paper, that the housing market is broken, and to fix it we need a robust, innovative and productive construc- tion industry. The report sets out clear recommendations on how we can improve the capacity of the homebuilding industry which must be prioritised by the new government that will be decided on 8 June. What is noteworthy in the recommenda-
tions is clear Select Committee recognition that we need more diversity in the market, both in terms of tenure and the delivery models employed and this must only be a good thing in terms of the need for some policy stability beyond the election. There is explicit support for the role in increased delivery of housing associations, the institu- tional Build to Rent sector and the application of modern construction techniques alongside a fit for purpose skills and training regime that is aligned with industry needs. I particularly welcome the endorsement
and indeed increased urgency given to the current government's intention to actively intervene in the market to promote construction innovation and develop capac- ity in the emerging pre-manufacturing sector. In this regard, the recommendations include a request for specific progress
document aren’t acted upon, homebuilding and the construction industry in the UK will continue to deteriorate, impacting economic growth at a time when we need a solid platform for domestic industrial performance. The findings only reiterate my previous challenge to both Government and the construction industry to modernise the home building policy framework and the basic delivery approaches used.
RICS says resi sales still lack impetus
The UK housing market continues to lack impetus, with new buyer enquiries and agreed sales stagnant in March, according to the RICS. Properties coming on to the market have
also dropped further, and consequently respondents to the March 2017 RICS UK Residential Market Survey have reduced predictions for sales growth in the year ahead. New buyer enquiries in the UK were
reported to be flat for a third successive month in March, and although the picture remains mixed across the UK, the areas with declining buyer interest outweigh those with increasing demand. The strongest growth in new buyer
enquiries was seen in Northern Ireland and the South West (+34 and +22 net balances respectively). In London, buyer interest has been increasing modestly over the last four months (+9 net balance in March). Stock on estate agents books has dipped
to a new record low, with branches (on average) currently holding only a total of 43
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unsold properties. The lack of supply in the market contin-
ues to underpin prices, with 22 per cent more respondents seeing a rise over the last month across the UK. However, the differ- ence between Central London and the rest of the UK continues to widen. Prices in Central London have progres-
sively deteriorated, and at -49 per cent, the net balance was the weakest since 2009. Further ahead, sales expectations over
the next 12 months were reduced, with 24 per cent more respondents predicting a rise, down from +37 per cent in February. Expectations for year-ahead sales growth were reduced in eight of the 12 UK regions/countries covered in the survey. Simon Robinson, RICS chief economist,
said the latest results show “little change in the underlying picture.” “High end sale properties in Central
London remain under pressure,” he contin- ued, “while the wider residential market continues to be underpinned by a lack of stock.” He concluded: “For the time being it is
hard to see any major impetus for change in the market, something also being reflected in the flat trend in transaction levels.”
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