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Changes to the Housing Delivery Test
HOUSING MINISTER Christopher Pincher MP has decided that, for the second consecutive year, he is adjusting the Housing Delivery Test to allow for the effect of Covid on the planning system. This test measures the net number of completed homes in a local authority over the previous 3 financial years against the homes required over the same period. This year, the Minister has lowered the obligation on councils by removing figures for the period April to July 2021 - approx. a third of the year. The upshot is that the ratio between the number of calendar days and the total
to meet the 95%, 85% and/or 75% threshold of their housing requirement is very likely to reduce significantly. Consequently, their delivery performance is made to look better, pro-rata, than it actually is.
number of homes completed is artificially stacked in favour of a higher percentage that councils will be deemed to have met under the test.
The adjustment could mean the number of councils that fail
Given the recent trading statements by volume house- builders who report significantly higher levels of completed homes, government critics are questioning whether the changes to this HDT are needed - or it is a way for ministers to soothe long-standing grumbles from elected local councillors and MPs who are hostile to the forthcoming Planning Bill.
Record quarter for building material sales
THE LATEST REPORT from the BMF’s Builders Merchants Building Index (BMBI) confirms Q2 2021 as the best performing quarter on record, for sales through GB builders’ merchants.
Total builders’ merchants sales in Q2 2021 increased by an astonishing +96.0% over Q2 2020. While this reflects the severe impact of the initial Covid lockdown,
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looking further back the BMBI figures show Q2 2021 merchant sales increasing by +20.3% against Q2 2019. All categories sold more in Q2 2021 compared with the same period in both of last two years.
2021 quarter on quarter sales also showed significant growth. Sales in Q2 2021 were 24.1% higher than in Q1, with two less trading days in Q2. Average sales a day in Q2 were 28.1% higher than in Q1.
Q2 2021 vs Q2 2020 – Yr on Yr Two of the strongest performers in Q2 2021 were the weakest in Q2 2020; Tools increased by +151.4% and Kitchens & Bathrooms by +141.3%. In addition, four categories had their best-ever quarterly sales since the BMBI started in July 2014 – Timber & Joinery Products (+134.6%), Ironmongery (+105.9%), Heavy Building Materials (+81.4%) and Landscaping (+71.1%).
Q2 2021 vs Q2 2019 – Yr on 2 Yr Comparing Q2 2021 with the same quarter two years ago, it is clear that the two strongest performers,
October 2021
www.buildersmerchantsjournal.net
Landscaping (+48.3%) and Timber & Joinery Products (+41.3%), drove the overall increase. Sales increases were recorded in all categories, with the largest product category, Heavy Building Materials, up by +11.8%. Other categories recorded smaller increases, including Plumbing Heating & Electrical (+3.2%), Decorating (+1.7%) and Kitchens & Bathrooms (+1.5%).
Q2 2021 vs Q1 2021 – Qtr on Qtr Ten of the 12 product categories sold more in Q2 than Q1. Once again Landscaping (+67.8%) was strongest, followed by Timber & Joinery Products (+29.3%) and Heavy Building Materials (+20.5%), with Decorating (+11%) and Kitchens & Bathrooms (+8.6%) amongst the others showing growth. Only Plumbing, Heating & Electrical (-3.5%) and Workwear & Safetywear (-11.4%) sold less. John Newcomb, CEO of the Builders Merchants Federation said: “This quarter’s results reflect both the strength of the current market and the vital role of builders merchants in the supply chain. The challenges faced in the first half of the year are likely to continue.”
Haulage a priority for BMF
A SNAP SURVEY of BMF members found 67% of builders’ merchant respondents and 86% of supplier respondents are affected by haulage issues, citing it as their number one concern. John Newcomb, BMF CEO said: “Haulage, and in particular the shortage of HGV drivers, has become our industry’s number one concern, and the results of our member survey have been fed into discussions between the transport industry and government. “Some suppliers are reporting that the standard five-day lead time has more than doubled. In some cases, we are even seeing increases of up to four weeks. Driver recruitment is the main challenge. Both suppliers and merchants are prepared to recruit or retrain existing staff as drivers, but there are limited opportunities for training and testing. They want more testing to be made available to help get new HGV drivers on the road.”
The issue is not confined to the building materials industry. The Covid-19 pandemic, Brexit and tax changes have contributed to haulage challenges; industry bodies estimate a shortfall of around 100,000 HGV drivers, with an some 15,000 lost following the UK’s exit from the EU.
Logistics UK’s May 2021 tracker survey found 61% of respondents considered HGV driver recruitment to be a ‘severe’ or ‘very severe’ challenge, while 50% cited testing availablility as a ‘moderate’ or ‘extreme’ barrier to recovery. John Newcomb added: “Builders merchants have done a fantastic job managing product demand and supply in the face of high global demand and reduced capacity resulting from the pandemic. Haulage is the latest challenge and our top priority. We are doing everything we can to assist discussions between the freight industry and government.”
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