building – The NEN – North Edinburgh News

Next generation of builders and carers ‘set to rebuild Britain’

Westminster government announces radical skills reforms giving young people opportunity to develop skills in priority areas for the country

Young people are set to benefit from 120,000 new training opportunities as part of a ‘radical skills revolution’, giving them the chance to develop skills where they are most needed across the workforce to rebuild Britain.

More skilled brickies, carpenters and healthcare support workers will soon be trained up as the UK Government continues it’s drive to get Britain working, with landmark reforms announced today that refocus the skills landscape towards young, domestic talent.

The measures, backed by a record-breaking £3 billion apprenticeship budget, will open up opportunities for young people to succeed in careers the country vitally needs to prosper.

More routes into skilled work means more people building affordable homes, more care for NHS patients and more digital experts to push our economy forward. This includes an additional 30,000 apprenticeship starts across this Parliament.

This unprecedented investment is a critical step in delivering the government’s Plan for Change mission to create a decade of national renewal. They say they are backing our young people and investing in skills as an engine of economic growth – putting more money in people’s back pockets and breaking down barriers to opportunity.

Education Secretary Bridget Phillipson said: “A skilled workforce is the key to steering the economy forward, and today we’re backing the next generation by giving young people more opportunities to learn a trade, earn a wage and achieve and thrive.

“When we invest in skills for young people, we invest in a shared, stronger economic future – creating opportunities as part of our Plan for Change.

“But everyone has a role to play in a thriving economy, and we’re taking our responsibility seriously providing more routes into employment, it’s now the responsibility of young people to take them.”

To support this, the Westminster government is:

Implementing a 32% increase in the Immigration Skills Charge, which will deliver up to 45,000 additional training places to upskill the domestic workforce and reduce reliance on migration in priority sectors. As announced in the recent Immigration White Paper.
Refocusing funding away from Level 7 (masters-level) apprenticeships from January 2026, while maintaining support for those aged 16-21 and existing apprentices. This will enable levy funding to be rebalanced towards training at lower levels, where it can have the greatest impact.
Launched 13 new Level 2 construction courses for adults in non-devolved areas under the Free Courses for Jobs scheme.

In addition to the £3bn apprenticeship budget, the government is backing the new generation of workers through:

£14 million of adult skills funding for construction to be devolved to local mayors for next academic year, expected to support up to 5,000 additional adult learners.
£136 million for Skills Bootcamps across a range of priority sectors in 2025-26, providing training to over 40,000 learners.
£100 million over four years to expand Construction Skills Bootcamps.
Ten Technical Excellence Colleges specialising in construction skills, opening in September 2025.

As part of the UK government’s Plan for Change, the reforms are a vital step in delivering our youth guarantee and addressing skills shortages to drive growth while creating better opportunities for young people and adults across England.

Today’s announcement comes following a dramatic fall in the number of apprenticeship starts over the last decade, and as recent ONS statistics show as many as one in eight 16-24 year olds are not in employment, education or training.

Glenigan Announces its Review of Construction in 2022

A new annual report explores how the significant disruption of last year is setting the market mood of the construction sector in 2023.

Today, Glenigan, one of the construction industry’s leading insight and intelligence experts, releases its 2022 Construction Performance Review.

Providing a topline overview of UK construction sector activity over the past 12 months, this report evaluates overall output whilst offering insight into how this will influence the market in 2023.

Figures presented are drawn from Glenigan’s own data, combining both major (> £100m) and underlying (<£100m) projects, complemented with information from other official sources, including ONS figures.

The key takeaway from the Review is the staggering inflation in construction materials costs, which had been gathering momentum since January 2021 to peak at a massive 26.8% in Q.2 2022. Whilst currently figures have settled at around 15%, ongoing international geopolitical events and domestic socioeconomic disruption indicates market volatility and, possibly, another inflation spike in the first half of 2023.

Looking at specific materials categories, energy intensive products were hit hardest, with the price of aggregates and insulation rising an eye-watering 53% and 32% respectively. More barriers to imports post-Brexit and rocketing power prices can be seen as the key reasons for these dramatic rises, and will put considerable pressure on contractors already working to extremely tight margins.

Labour and Wait

The construction sector also felt the pinch in terms of labour supply, which intensified over the course of 2022. Alongside legacy issues, such as a shallow recruitment pool and a greying workforce, Brexit and the Pandemic has resulted in less ready access to EU workers.

Looking at the figures as they stand at the start of the year, whilst there are currently 2.14 million employed in the sector, this number still languishes almost 7% below pre-Pandemic levels and 2.4% on a year ago. Couple this with 49,000 construction vacancies and there’s a shortfall with the very-real potential to stifle 2023 activity. This might put a serious dent in the current Government’s ambitious infrastructure and levelling-up plans in the short-term.

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Projected Performance

Despite material and labour pressures, output actually rose in 2022 by 6% compared to the previous year. Most significant was a 52% leap in industrial new build and 11% registered for private residential new build activity.

However, tempering any optimism for a speedy recovery, a drop in the number of projects starting on site last year points to a weakening in construction output in 2023.

2022 saw a significant slowdown in projects progressing to work on site, as contractors and clients have reappraised the design and cost of build, largely prompted by price inflation and regulatory changes.

For example, many housing developers pushed back start dates in Q.3 2022, following the introduction of Part L of the Building Code. Overall this has led to a 50% increase in the time it takes from planning approval to commencing on site.

Furthermore, the value of underlying project starts also declined by 5% in the second half of 2022, compared with the same period a year ago. This was reflected in a 5% dip in the value of underlying planning consents during the same period and a concerning 14% drop in the number of projects securing planning consent.

Looking Ahead

Commenting on 2022 performance, and how it relates to the year ahead, Glenigan’s Economic Director, Allan Wilen, says: “The construction sector has already been buffeted by strong headwinds in the second half of 2022, and these look to become more forceful in 2023.

“The cautious optimism and tentative performance increase this time last year has been washed away by events out of the sector’s control, and many businesses will be battening down the hatches and hedging their bets for a potential, if modest, uplift in the latter half of the year.

“Whilst supply side pressures may ease, the skills shortage is a persistent problem which the industry will urgently need to tackle if it wants to return to pre-Pandemic output levels. However, there are a few bright spots in the gloom, with major projects including HS2 driving activity, as well as an increased focus on other critical infrastructure in energy, healthcare and data centre developments.

“Whilst next year will remain depressed, with a 2% decrease in the overall value of underlying project starts, Glenigan predicts a 6% increase in 2024, setting construction back on the road to recovery.”

To read the full 2022 Construction Performance Review Report, containing deeper analysis of the above, click here.

2023 sees Glenigan celebrate its 50^th anniversary, commemorating half a century of delivering the highest-quality construction market intelligence.

To find out more about its services and expertise click here.

Glenigan Construction Index: Project start decline bottoms out

Underlying project-starts remain depressed, 17% down on the preceding three months, 13% lower than in 2021.
Residential (-21%), non-residential, (-13%) and civils (-13%) all fall against the preceding three months.
Northern Ireland (+16%) and Scotland (+19%) post strong results during November Index period

Glenigan, one of the construction sector’s leading insight experts releases the November 2022 edition of its Construction Index.

The Index focuses on the three months to the end of October 2022, covering all underlying projects with a total value of £100m or less (unless otherwise indicated), with all figures seasonally adjusted.

The key takeaway from November’s Index is the gradual levelling out of project-start decline, which has characterised the Index since May 2022.

However, whilst performance has stabilised, overall underlying project-starts remain at a low ebb, 17% lower than the previous three months to October, and 13% down on the same period last year.

According to Glenigan’s Senior Economist, Rhys Gadsby, “It’s encouraging to see a fall in project starts has slowed during the period covered by this Index, however, optimism should be cautious.

“Our recent Forecast, released last week, indicated some gale-force headwinds going into 2023, so we shouldn’t expect this performance plateau to be the harbinger of full recovery, at least in the short term.

“Geopolitical disruption, an uncertain domestic economy and a government finding its feet have dented market confidence. Despite the much-needed market assurance expected from the Chancellor’s Statement on 17^th November 2022, it’s unlikely it will provide an immediate boost in activity.”

Sector Analysis – Residential

Decline was consistent across the board, with project-starts falling 21% against the preceding three months to stand 10% lower than 2021 levels.

Despite social housing faring slightly better compared to other verticals covered in the Index (-7% against the previous three months), the value still dipped 26% against last year.

In contrast, private housing-starts tumbled 24% on the previous three months whilst only falling 6% compared to 2021.

Sector Analysis – Non-Residential

The downward trend continues in the non-residential verticals. However, office project-starts were an exception, remaining largely unchanged on a year ago and were up an impressive 11% on the three months preceding October. Whilst industrial starts were up 4% on the previous three months, they slipped 15% behind 2021 levels.

Hotel and leisure starts fell 19% against the preceding three months, experiencing a massive 38% decline against last year. Education (-24%) and health (-41%) work starting on site also declined against the previous three months, respectively standing 28% and 31% lower than a year ago.

Civils project starts slipped back 13% against the previous three months but remained stable compared to 2021 figures.

Regional Analysis

Similar to other Glenigan Indexes published in 2022, Northern Ireland project-starts saw another performance uptick, rising 16% on the previous three months and up by a massive 35% on a year ago.

Scotland also experienced a strong period, with on-site starts up 19% on the last three months and 10% higher than 2021.

Project-start performance was less consistent in other regions. Whilst Wales witnessed a 25% boost against the preceding year, figures were 5% down on the previous three months. The North West remained largely unchanged on the last three months and a modest 2% down on 2021.

All other regions registered decline during the November Index period, and compared to last year. Project-starts in London and Yorkshire & The Humber both experienced steep falls (-35%) against 2021 levels.

For more information about the Glenigan Index and its other publications and services click here.

Scotland site managers win top award for house building quality

Scotland’s top site managers gathered to celebrate their achievements at NHBC’s Pride in the Job 2022 Awards which were held at The Hilton in Glasgow last week.

Organised by NHBC, the UK’s leading new homes warranty and insurance provider, Pride in the Job celebrates site managers who have achieved the very highest standards in house building. It is the most highly regarded competition in the house-building industry and a prestigious benchmark for exceptional site managers.

A series of regional events are taking place throughout the autumn, to announce the Seal of Excellence and Regional Award winners and celebrate the achievements of the Quality Award recipients.

Now in its 42^nd year, judging for the Awards is rigorous, with each site manager assessed across six key areas: consistency, attention to detail, leadership, interpretation of drawings and specifications, technical expertise and health and safety.

The competition is split between three categories: small, medium and large house builders, plus a multi-storey category for site managers working on projects of five storeys or more for multiple occupancy.

This year’s Regional winners were:

Small Builder category – Duncan Moon of Guild Homes (Tayside) Ltd, for their work at Strathmore Fields at Forfar.

Medium Builder category – Stuart Gillespie of Mactaggart & Mickel Homes Ltd, for their work at Greenan Views at Doonfoot.

Large Builder category – Eddie McCann of Taylor Wimpey East Scotland, for their work at Calderwood in East Calder.

Multi-storey category – Cathal Lamph of CALA Homes East, for their work at Waterfront Plaza in Edinburgh.

As well as their category wins, Mr Moon, Mr Gillespie, Mr McCann and Mr Lamph were each awarded a Seal of Excellence. A further ten managers across the region were also awarded a Seal of Excellence at the ceremony having gained a Quality Award in the first round of the competition in June. They were:

Gavin Bianchi of Taylor Wimpey East Scotland
Jeff Calder of Barratt and David Wilson Homes North Scotland
George Carty of Bellway Homes Scotland West
Victoria Chalmers of Barratt and David Wilson Homes North Scotland
Iain MacLaren of Barratt and David Wilson Homes North Scotland
Ewan MacLean of Barratt and David Wilson Homes East Scotland
Jim Martin of Miller Homes Scotland East
David McClure of Taylor Wimpey West Scotland
Colin McNeish of Miller Homes Scotland West
Michael Roarty of Barratt and David Wilson Homes West Scotland

Over more than four decades, Pride in the Job has underpinned NHBC’s core purpose of raising standards in house building by championing high-quality homes and protecting homeowners. By recognising the very best site managers across the UK, showcasing best practice and rewarding excellence, the competition celebrates the vital role that site managers play in ensuring new homes are delivered on time, on safe sites and to exacting construction quality standards.

Commenting on the Awards, NHBC Chief Executive Steve Wood said: “For more than 40 years Pride in the Job has been an important part of our work to help drive construction quality. Winning site managers tell us that it inspires them to give a little extra and to strive harder for ever-higher standards of house building.

“At NHBC we believe that the calibre of the site manager and the way they inspire their site team has the greatest influence on the quality of the finished home. By promoting friendly rivalry, showcasing best practice and rewarding excellence, Pride in the Job supports the delivery of homes of the highest quality.

“Congratulations to all the 2022 Pride in the Job Seal of Excellence and Regional Award winners. They are an inspiration to us all and should be very proud of the quality of new homes they are creating.”

The Regional Award winners will now go forward to compete for the ultimate prize in house building, the Pride in the Job Supreme Awards which will be unveiled at a gala ceremony in London in January 2023.

For further information and the full list of winners please visit: Pride in the Job 2022 | NHBC

Glenigan forecasts Construction Sector return to growth by 2023

Glenigan, one of the construction industry’s leading insight and intelligence experts, has released its UK Construction Industry Forecast 2022-2024.

The key takeaway from this Forecast, which focuses on the next three years (2022-2024) indicates the construction industry will face challenging economic conditions.

However, whilst growth will be stifled in 2022 (-2%), 2023 is predicted to see a modest 8% increase and a smaller 2% lift in 2024, representing an average rise of 2.6% over the Forecast period.

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This report is predominantly focused on underlying starts (< £100m in value), unless otherwise stated, and contains a comprehensive overview of the current state of the construction industry. Crucially, it provides overall sector and vertical-specific insight into performance over the next few years.

Significant disruption stifles short-term growth

The next few years will be challenging for the construction industry as a whole. The war in the Ukraine is creating considerable economic uncertainty which is having a direct, current effect on output, derailing post-COVID recovery. As a result, overall project starts are forecast to slip back 2%.

Aside from this ongoing conflict, current inflation spikes, higher taxes and rising mortgage costs are expected to constrain activity in consumer-related areas, such as private housing, retail and hotel & leisure.

In contrast, a firm development pipeline is predicted to lift industrial and office starts in 2022, as well as Government-funded areas such as education, health and community & amenity.

More positively, the value of project starts is expected to rise in 2023, as the UK economy stabilises and short-term supply chain pressure ease. However the lingering impact of higher construction, material and energy costs means this growth will be significantly lower than predicted in previous forecasts.

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Housing Starts Depressed

Although a buoyant housing marked helped to lift new housebuilding activity in 2021, with starts rising 26%, this recent surge is fading.

Predicted to drop 5% in 2022, following the removal of temporary Stamp Duty relief and dwindling homebuyer confidence, higher taxes and mortgage costs, housebuilders are expected to moderate project starts and focus on building out developments already on-site.

However, this slowdown appears temporary, with a renewed build-for-sale starts recovery anticipated in the second half of the Forecast period, rising 14% in 2023 and 1% in 2024, as household financial positions and UK economic prospects improve. Furthermore, a strong development pipeline has also be registered for Build-to-Rent starts, following a productive 12 months in 2021.

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Bright spots for non-residential work

Industrial starts, particularly warehouse and logistics, are set to remain a growth area, building on the ever-increasing appetite for online retail, which accelerated during the pandemic. With e-commerce expected to be a significant growth market in the coming years, 2022 will see start value increase by 11%.

However, the online shopping boost has hit physical retail hard, with high street and outlet footfall remaining far lower than pre-pandemic levels. Unsurprisingly, lower consumer spending power, an overhang of empty retail premises and a greater share of the market moving online, means growth will be tempered over the Forecast period. Here, increased investment by the deep discount supermarkets, Aldi and Lidl, will be the primary drivers of the predicted 6% average uplift between 2022 and 2024.

The leisure and hospitality sector, hit hard by the pandemic, is also only set to expect modest recovery over the Forecast period due to reduced consumer discretionary spending during a tighter economic climate.

Moving from play to work, office starts bounced back sharply last year (+27%) and are predicted to benefit over the forecast period (av. +11%). This potential growth can be attributed to a rise in refurbishment projects as tenants and landlords adapt premises to accommodate changing working practices. However, new build office projects will likely be slower to recover as tenants and developers assess the effects of the shift towards remote and hybrid working on the long-term demand for office accommodation.

Public Sector Pick-Up

Public sector investment is set to be an important driver for construction activity over the Forecast period. However, the latest Spending Review revealed only modest growth in capital funding for a handful of central Government departments over the next three years.

Whilst the value of social housing starts is set to dip almost 10% this year, following a 15% surge in 2021, the vertical is predicted to rally for the remainder of the Forecast period, helped by a strong pipeline of already approved projects commencing on site.

Education construction is a vertical predicted to grow significantly over the next few years (av. +8%), partly driven by the Government’s commitment to building 500 new schools over the next decade. This is supported by a modest rise in universities capital spending during the second half of the Forecast period

The outlook for the health sector is also brightening. Starts remained high in 2021 post-Pandemic and the increase in capital funding and a growing development pipeline means the value of starts are expected to remain steady over the Forecast period, will slight declines this year (-5%) and next (-6%) .

Focusing on civils and infrastructure, a significant funding increase in areas such as roads, especially to address the maintenance backlog on the nation’s local roads, is helping to lift the value of project starts.

Investment in rail projects and utilities development, as well as ongoing work on major infrastructural projects such as Thames Tideway, HS2 and Hinkley Point are also set to support vertical activity over the Forecast period.

Commenting on the Forecast, Glenigan’s economic director Allan Wilen says, “Circumstances have changed significantly since the November 2021 Forecast and, whilst the short-term picture appears challenging, we should adopt a sanguine approach for the next few years.

“Markets sent into turmoil by the Russia-Ukraine War are starting to stabilise as new supply chain solutions are developed and established.

“Of course, in the near future construction and building product costs will remain high. However this situation will no doubt encourage a burst of imagination and innovation which will see the sector weather the current storm and progress to, if not sunny uplands, then at least towards a trajectory of upward growth.”

To download Glenigan’s UK Construction Industry Forecast 2022-2024 click here.

To find out more about Glenigan, its expert insight and leading market analysis, click here.

Rowanbank Gardens: Low carbon homes deliver low energy bills

Hot Water & Heating Bills at Rowanbank Gardens, Edinburgh, Could Cost Less Than £65 Per Month**

Smart, No Fossil-fuel Design of New Apartment Development Helps Tackle Soaring Energy Costs

Energy bills at Artisan Real Estate’s Rowanbank Gardens development in Corstorphine, Edinburgh, have been estimated to cost up to 60% less than other new build apartments in the surrounding area*

Latest research on the fossil-fuel free homes shows that average annual hot water and space heating costs for a two-bedroom apartment at the development could be as low as £775 per year, or less than £65 per month** – providing significant long-term cost savings for first-time buyers or purchasers wanting to downsize for more energy efficient living.

Described as a ‘spectacular blueprint for low carbon living’, Rowanbank Gardens will deliver 93 high quality apartments for private sale set around a large open garden space filled with fruit trees and communal planting beds . Work began in summer 2021 and with construction now continuing apace, the first move-ins are expected in spring next year.

Rowanbank Gardens has been designed to set new industry standards for sustainable, low-carbon development challenging many of the norms associated with the construction and delivery of traditional apartment buildings.

It is one of the first large residential developments in Scotland to employ individual Air Source Heat Pumps (ASHPs) providing both heat and domestic water – moving away from large, complex fossil-fuel heat sources.

With additional insulation, larger windows and improved air circulation, the heat reclamation system allows internal heat to be reclaimed through the ventilation system, forming a closed energy loop with almost all useful heat being retained within the apartments.

David Westwater, Artisan’s Development Director for Scotland, welcomed the low energy cost forecast as more evidence of Rowanbank Gardens’ immaculate environmental credentials which can provide significant financial benefit for homeowners feeling the pinch of soaring energy bills and the rising cost of living.

He explains: “Rowanbank Gardens provides smart, energy-efficient design geared to achieving low to zero carbon ratings, with the added benefits of significantly lower home-running costs.

“This demonstrates Artisan’s stated commitment to move away from using any fossil fuels to heat homes within our developments as part of our pledge to reduce carbon nationally. Instead, Artisan is leading the way in introducing energy-efficient technology, such as individual air-source heat pumps which capture the warm air within the home and then uses it to provide cheap and efficient heating, as well as piping hot water.

He adds: “We also make each home or apartment as energy efficient as possible by using the very latest in energy efficient technology to encourage low carbon and energy efficient living.

“As well as innovations like individual heat pumps, we also provide A-rated appliances for all of our homes and are introducing cutting-edge environmental technologies such as spray taps and stone-showers which have been proven to reduce water consumption by up to one-third.”

The construction of Rowanbank Gardens follows Artisan’s design framework geared to achieving low to zero carbon city living, which starts with ‘use less, first’.

The building is designed to make the absolute most of its natural environment, positioning it in such a way to maximise natural energy and warmth from the sun whilst providing management of, and protection from, external elements like wind and rain.

Artisan has also championed the use of turfed green roofs at Rowanbank Gardens, which are natural insulators being cool in the summer and warm in the winter. They also provide a natural drainage facility with rainwater evaporating in sunlight, providing the simplest form of a short-term carbon cycle and reducing the impact on the existing drainage system.

Green roofs also encourage a huge amount of ecological biodiversity for buildings – attracting plant, insect and bird life which are encouraged with natural inducements such as wild-flower planting, beehives and roosting sites.

Since it launched late last year, sales at Rowanbank Gardens have been buoyant, with 13 of the first phase already sold. Prices for a two-bedroom apartment start at £245,000 – making the development a perfect destination for first-time buyers and downsizers wanting to live in well-connected, bustling community just minutes from the city centre.

To register interest In Rowanbank Gardens and book an appointment at the on-site sales and marketing suite, visit the development website at www.rowanbankgardens.com or call 0131 516 3302.

* Compared to equivalent new build apartment at Artisan Real Estate’s Canonmills Garden, Edinburgh, completed 2022.

** Figure based on Building Regulation compliance energy consumption and measured against average electrical process from June 2022 of £0.278/kWh. Final performance subject to user operation preferences.

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