Construction firms shy away from housebuilding due to insurance issues

Nearly a third of construction firms have been forced to switch from housebuilding to other types of work due to inadequate professional indemnity insurance, PII, according to an industry poll. The Construction Leadership Council’s, CLC, survey found SMEs were particularly badly hit by increased premiums and excess levels plus wide-ranging exclusions. Out of the 652 firms that responded to the poll, two-thirds said high-rise residential work accounted for less than five per cent of their workload. CLC PII group chair [...]

New build homes in London bounce back

New homes in London recorded a 51 per cent year-on-year increase according to the National House Building Council’s, NHBC, registration figures for the first quarter of 2021. Wales saw an 84 per cent rise followed by 65 per cent for the East Midlands and 52 per cent for the West Midlands.  Northern Ireland experienced an eight per cent decrease and Scotland a six per cent drop. Overall, the volume of new homes registered was up by a quarter to 45,991 [...]

Custom and self-build demand soars in face of modest permissions increase

The number of individuals registering to construct a self-build or custom house rose by a third while permissions granted increased by just seven per cent. Government statistics show 12,263 individuals joined local councils’ custom and self-build register between 31st October 2020 and 30th October 2021 – a 31 per cent year-on-year increase. And 157 new groups joined the register – a 12 per cent rise on the previous year. However, councils granted just 8,309 planning permissions for service plots reflecting [...]

Smaller builders call for clearer guidance on looming new regs

More than half of SME builders feel unprepared for imminent changes in building regulations to improve energy efficiency, claims the Federation of Master Builders, FMB. New rules on ventilation, conservation of fuel and power, overheating and infrastructure for charging electric vehicles come into force on the 15th of June. FMB chief executive Brian Berry said: “Over 50 per cent of small, local builders are not yet prepared or are not aware of the changes. This puts them at real risk [...]

Lyn Garner to step up housebuilding on GLA land

London’s mayor Sadiq Khan has appointed Lyn Garner to oversee the capital’s housing delivery on land the authority owns. Ms Garner will offer strategic oversight on building new homes on Greater London Authority Group, GLA Group, land which includes Transport for London and the London Fire Brigade. “There’s huge potential and a genuine commitment among all involved to use our landholdings to tackle London's housing crisis,” said Ms Garner who will continue as London Legacy Development  Corporation chief executive. Her appointment [...]

SMEs to pay for remediation work on homes they didn’t build

SME housebuilders are furious about being forced to pick up the tap for remediating unsafe tower blocks – a type of property they don’t build. Housing secretary Michael Gove’s announcement to extend the building safety levy to all housebuilders to raise a further £3bn for remediation has come as an unpleasant shock. National Federation of Builders housing and planning policy head Rico Wojtulewicz said: “We’re livid. It’s completely out of the blue. They have thrown our smaller members under a [...]

Housebuilders worried focus on solar panels could up development costs

Housebuilders could be lumbered with extra infrastructure costs if solar panels become mandatory for new developments, the industry fears. The National Federation of Builders, NFB, has criticised the government’s energy strategy, published last week, for focusing on the increasing use of solar panels rather than wind turbines. Housing and planning policy head Rico Wojtulewicz said: “Solar panels will raise costs. You have to get a qualified person to install them. They’re not just an add on, as they require grid [...]

Construction orders show fastest rise in seven months

Building output was boosted by sustained rise in new work across the board according to the Construction Purchasing Managers index for March. The latest reading of 59.1 was unchanged from February and well above the 50 mark that separates expansion from contraction. The index revealed the joint-fastest rate of output growth since June 2021 boosted by the highest level of new orders since August last year. Commercial work was the best-performing segment with an index reading of 60.8 due to [...]

Fuel prices to soar in wake of curbs on Russian oil imports

Fuel prices to soar in wake of curbs on Russian oil imports Business secretary Kwasi Kwarteng has announced the UK will phase out imports of Russian oil by the end of the year. Mr Kwarteng said that as the ban was not immediate there would be enough time for supply chain adjustments. “Businesses should use this year to ensure a smooth transition so that consumers will not be affected,” he said. The UK sources 18 per cent of its diesel [...]

Tax break on red diesel vital in wake of Russian sanctions

SME builders are lobbying the government to hold off scrapping the tax rebate on red diesel due to the war in Ukraine. Lack of electrically powered machinery, biofuel and a shift in prices due to sanctions against Russia will mean huge cost increases when the rebate is removed on 1st April. Contractors have said they may have to increase their hourly rates for activities such as excavation by up to £5 per hour. The 47 pence per litre rebate for [...]

New home registrations increase by a quarter

New home registrations showed a year-on-year increase of 25 per cent to 153,339 for 2021, according to the National House Building Council, NHBC. The sector saw a significant rebound following 2020’s eight-year-low of 122,935 registrations. New home completions also showed a significant uplift in 2021, increasing by 21 per cent to 139,333 compared with 2020’s 115,561. NHBC chief executive Steve Wood said: “The house-building industry demonstrated considerable resilience in 2021, rebounding well from the pandemic and coping with significant strains [...]

Home counties site with space for 450 homes is on offer

A £170m major mixed-use scheme next to Hertfordshire’s Hemel Hempstead station is available for development. Network Rail and London and Continental Railways, LCR, are looking to shortlist six developers for the ten-year project on prime commuter-belt land. LCR regional director Andrew Ferguson said: “Coupling easy access to London with open green spaces and high-quality community assets, this site represents an unmissable opportunity to unlock new homes, commercial space and public value”. Architects Farrells masterplan is for 450 flats in a [...]