Tag: construction

£2 billion new investment to support biggest boost in social and affordable housebuilding in a generation

‘Hard working’ families in England to get safe and secure homes as Chancellor announces £2 billion injection of new grant funding to deliver up to 18,000 new social and affordable homes

  • Landmark announcement part of Plan for Change to deliver security for working people by growing the economy and building 1.5 million homes.
  • £2 billion of new funding will only support development on sites that will deliver in this Parliament, getting spades in the ground quickly to build homes in places such as Manchester and Liverpool.

Helping hard working families get safe and secure homes and kickstarting economic growth are driving the government’s agenda, as the Chancellor and Deputy Prime Minister today (Tuesday 25 March) announced up to 18,000 new social and affordable homes will be built with a £2 billion injection of investment to deliver the Prime Minister’s Plan for Change.

The announcement hails a significant milestone on the government’s promise to build 1.5 million new homes whilst driving economic growth by getting Britain building again. It follows the government’s plan to inspire the next generation of British engineers, brickies and chippies, by training 60,000 construction workers to tackle skills shortages and get more young people into jobs.

The £2 billion investment boost comes as a down payment from the Treasury ahead of more long term investment in social and affordable housing planned later this year, which will provide additional funding for 2026-27 and well as for future years. This forms part of the government’s plan for tackling the housing crisis that has held working families back from the stability and security that comes with a safe roof over your head.

Thousands of new affordable homes will start construction by March 2027 and will complete by the end of this Parliament. The government is encouraging providers to come forwards as soon as possible with projects and bids to ramp up the delivery of new housing supply, in turn making the dream of home ownership a reality for more people across the country.

Today’s investment will also unlock development and opportunity on sites that are ready and waiting for spades in the ground in places such as Manchester or Liverpool.

The Chancellor announced plans on a visit to an affordable housing site in Stoke-On-Trent with the Deputy Prime Minister, working hand in hand to deliver the biggest boost to affordable and social housing in a generation.

Deputy Prime Minister and Housing Secretary, Angela Rayner said: “Everyone deserves to have a safe and secure roof over their heads and a place to call their own, but the reality is that far too many people have been frozen out of home ownership or denied the chance to rent a home they can afford thanks to the housing crisis we’ve inherited.

“This investment will help us to build thousands more affordable homes to buy and rent and get working people and families into secure homes and onto the housing ladder. This is just the latest in delivering our Plan for Change mission to build 1.5 million homes, and the biggest increase in social and affordable housing in a generation.”

Chancellor of the Exchequer, Rachel Reeves said: “We are fixing the housing crisis in this country with the biggest boost in social and affordable housebuilding in a generation. Today’s announcement will help drive growth through our Plan for Change by delivering up to 18,000 new homes, as well as jobs and opportunities, getting more money into working people’s pockets.

“At the conclusion of the current Spending Review process on 11 June 2025, the government will announce further long-term investment into the sector in England, delivering the biggest boost to social and affordable housing in a generation.”

Kate Henderson, Chief Executive at the National Housing Federation, says: “This funding top-up is hugely welcome and demonstrates the government’s commitment to delivering genuinely affordable, social housing for families in need across the country. The additional £2 billion will prevent a cliff edge in delivery of new homes, ahead of the next funding programme being announced.

“Social housing is the only secure and affordable housing for families on low incomes, and the dire shortage has led to rocketing rates of poverty, overcrowding and homelessness.

“Investment in social housing is not only key to tackling the housing crisis, but is also excellent value for money, reducing government spending on benefits, health, and homelessness as well as boosting growth. Housing associations are ready to work with the government to deliver a generation of new social homes.

Charlie Nunn, CEO, Lloyds Banking Group said: “A safe and lasting home is the foundation for good lives and livelihoods, and we welcome this boost to building much-needed social and affordable homes. 

“As the UK’s biggest commercial supporter of social housing, we’re working across the private, public and community sectors to help increase provision of good quality, genuinely affordable housing for those in need.”

David Thomas, CEO at Barratt Redrow said: “To increase construction activity and build the homes the UK desperately needs, we need support for demand across all tenures.

“As well as providing more much-needed affordable homes, this welcome investment will help unlock mixed-tenure developments and to create jobs and economic growth across the country.”

Stephen Teagle, Chair of The Housing Forum said: “This additional funding signals that the Government is listening to the sector and reaffirms its strong commitment to accelerating the delivery of much-needed affordable housing while driving economic growth.

“It represents an unprecedented intervention which, when paired with sustained, long-term investment, will be instrumental in meeting the growing demand for affordable homes.

“Now, it’s up to the industry to rise to the challenge — accelerating delivery, building momentum towards the government’s target of 1.5 million new homes, and ensuring we provide the housing this country urgently needs.”

Eco hosts Powering Futures students as nationwide skills programme hits the road

A diverse manufacturing business which is leading the way in sustainable industrialised construction to meet the UK’s housing needs hosted more than 60 secondary school students who presented their ideas on how to tackle society’s key challenges.

Eco Group, led by founder and MD Eddie Black, specialises in Contract Manufacturing, Organic Brand Manufacturing, and Services to Manufacturing in a range of industries across the UK from its base in Annan, Dumfries and Galloway.

Eco’s VASO Build Solutions, construction panels made from mostly recycled glass, is one of a range of world-first decarbonisation technologies and carbon mitigation strategies developed by the pioneering business.

On Monday (March 17), Eddie and Eco Group Opportunity Strategist Gary Robertson, and Eco colleagues, hosted S5 students from Annan Academy as part of the forward-thinking Powering Futures programme involving 1,300 pupils in 86 schools across Scotland.

Powering Futures, which is supported by 47 Scottish businesses and organisations, “prepares the workforce of the future for the jobs of the future”, educating the workforce of the future in over 100 Scottish secondary schools, and training the workforce of the future in large employers across the country.

The SCQF level 6 accredited programme equips learners with critical meta-skills that employers are looking for while gaining an understanding of sustainability knowledge.

The event at Eco on Monday kicked off a programme throughout Scotland over the next two weeks where students will be making their final presentations to businesses in boardrooms, from the Borders to Inverness, to mark the culmination of their 30-week challenge.

Eddie Black, one of the judges at Monday’s event, said: “Investing our time, energy and expertise in the next generation is something I have been passionate about ever since the day we set up our business more than 15 years ago.

“With the way Eco has grown and diversified, we were delighted to host the Annan Academy students at our headquarters and hopefully give them a taste of what a sustainable business environment looks and feels like.

“It was fabulous to see and listen to their challenge presentations. It was a privilege to be in the room with group of young people with such inquiring minds.

“We were genuinely blown away by the thinking and research they had done to come up with their solutions to some of society’s major challenges.

“All the students showed impressive problem-solving skills. We know all too well how much adaptability, collaboration and resilience they will have had to show to get to this presentation stage – we have even named one of our businesses Resilience because we know what an important quality that is in today’s fast-changing society. Congratulations to all the students – you were amazing.

“Big thanks must also go to all the teachers and staff at Annan Academy for giving our young people the support and opportunity to take part, and to the team at Powering Futures for making these experiences happen which will stand the students in such good stead today for embarking on the careers of tomorrow.”

Participants in the Powering Futures Schools Programme engage in hands-on learning as they collaborate to find a solution to real-life sustainability challenges that have been set for this 2024-2025 academic year.

Industry partners are embedded in the delivery of the curriculum programme, which is designed to systematically create a pipeline of talent to businesses involved in delivering the transition to net zero.

Annan Academy is one of only four schools nationally to have enrolled an entire year group in the SCQF level 6 programme, the same level of Higher or modern and foundation apprenticeships.

Annan Academy Headteacher Ewan Murray said: “By integrating the Powering Futures Challenge into the whole year group instead of as an optional course, we ensured that all our students could benefit from learning these essential meta-skills, including teamwork, problem-solving, and organisation.”

Powering Futures Co-Founder David Reid said: “The teams demonstrated the new skills that they have developed over the past 30 weeks around team building, collaboration, problem solving and now presentation skills, all attributes that they need for a great career and a job in the future.

“So much so that Eco, our hosts, have already identified two or three individuals that they would like to speak more to about vacancies that they have, because they were so impressed.

“By fostering essential meta-skills that are highly valued by employers, the Powering Futures Schools Programme not only prepares students for their careers but also empowers them to navigate all aspects of life beyond education.

“They have helped the studentsgain the experience and confidence needed to navigate an evolving job market and contribute meaningfully to their industries.

“As a result, the students are not just preparing for the future – they are actively shaping it.

“Thank you also to all the team at Annan Academy for their support. We’re excited to continue collaborating with the academy to guide young people toward a brighter, more prosperous future.”

UK Government ‘unleashes’ next generation of construction workers to build 1.5m homes

  • Up to 60,000 more engineers, brickies, sparkies, and chippies to be trained by 2029, as Chancellor outlines how the Government will train more workers to tackle skills shortages and inspire the next generation into the construction sector.
  • New training will help deliver 1.5 million homes which will transform communities and drive growth through the Plan for Change.
  • Reforms will get young people into well paid, high skilled, jobs in the construction sector by funding additional placements, establishing Technical Excellence Colleges, launching new foundation apprenticeships, and expanding Skills Bootcamps.
  • This injection of over £600 million over the next four years will also encourage experienced builders to help train and inspire the next generation.

Ahead of the Spring Statement on Wednesday {26 March) the Chancellor has announced £600 million worth of investment to train up to 60,000 more skilled construction workers.

This will deliver well paid jobs across the country in the construction sector and help build 1.5 million homes to transform communities by the end of this Parliament. 

Chancellor Rachel Reeves said: “We are determined to get Britain building again, that’s why we are taking on the blockers to build 1.5 million new homes and rebuild our roads, rail and energy infrastructure.

“But none of this is possible without the engineers, brickies, sparkies, and chippies to actually get the work done, which we are facing a massive shortage of. We’ve overhauled the planning system that is holding this country back, now we are gripping the lack of skilled construction workers, delivering on our Plan for Change to boost jobs and growth for working people.”

The sector is facing significant shortages, the latest Office for National Statistics figures show that there are over 35,000 job vacancies and employers report that over half of vacancies can’t be filled due to a lack of required skills – the highest rate of any sector. Demand is expected to increase further to deliver the homes and infrastructure that this country needs.

Funding and reforms announced today will pay for more training places, ensure a sustainable flow of skilled construction workers and help businesses invest more in training. It will encourage the men and women who have spent decades working on building sites, to pass on their skills to the next generation of construction workers.

Building the skilled workforce of the future is key to driving economic growth, the central mission of the Government’s Plan for Change. These construction jobs are the type of secure, well paid, in demand jobs that will help put more money in working people’s pockets and fuel growth.

Education Secretary, Bridget Phillipson, said: “Skills are crucial to this government’s mission to grow the economy under our Plan for Change, and nowhere is that clearer than in the construction industry.

“We are being held back by the largescale skills shortages in the construction sector which is a major barrier to the delivery of the growth mission.

“These measures will break down barriers to opportunity for thousands of young people, helping them to thrive in – and build – their local communities.”

Today’s announcement will provide £100 million of new investment to fund 10 new Technical Excellence Colleges and £165m of new funding to help colleges deliver more construction courses.

Skills Bootcamps in the construction sector will also be expanded, with £100 million of funding to ensure new entrants, returners, or those looking to upskill within the industry will be able to do so.

All Local Skills Improvement Plan (LSIP) areas will benefit from £20 million to form partnerships between colleges and construction companies, to boost the number of teachers with construction experience in colleges, sharing their vital expertise by training the next generation of workers.

Construction will also be one of the key sectors that will benefit from new foundation apprenticeships backed by an additional £40 million, which will be launching in August 2025. This will inspire more young people into the construction industry and allow them to progress and specialise in advanced apprenticeships, giving them the tools they need for a sustained and rewarding career.

As part of this new offer, employers will be provided with £2,000 for every foundation apprentice they take on and retain in the construction industry, on top of fully funding the training costs through the new Growth and Skills Levy.

A further £100 million of Government funding, alongside a £32 million contribution from the Construction Industry Training Board (CITB) will fund over 40,000 industry placements each year for all Level 2 and Level 3 learners, those studying NVQs, BTECs, T-levels, and advanced apprenticeships.

This will help get learners ‘site-ready’ and address the ‘leaky pipeline’ of learners who don’t progress into the sector. The CITB will also double the size of their New Entrant Support Team (NEST) programme to support SMEs in recruiting, engaging, and retaining apprentices.

To ensure employers are able to work collaboratively to secure the workforce needed to meet future demand, the Government will sponsor a new Construction Skills Mission Board. Co-chaired by Government and by Mark Reynolds, Executive Chair of Mace, the Board will be empowered to develop and deliver a construction skills action plan and provide strategic leadership to the construction sector.

The government’s communications campaigns continue to promote skills and their contribution to opportunity and growth for individuals and employers.

In collaboration with the Department for Work and Pensions (DWP) through Job Centre Plus, the DfE campaign highlights the construction industry’s value for growth, celebrating employers who contribute significantly to workforce training, and emphasising the benefits of careers in construction. 

The announcement follows a series of reforms announced during National Apprenticeship Week, including changes to English and maths requirements that will see up to 10,000 more apprentices qualify each year in key sectors, and new shorter apprenticeships. Changes to end point assessments will also mean it is even easier for businesses and providers to support getting people into the workforce.

Last year the Education Secretary announced new Construction Skills Hubs, funded by industry, which will also speed up the training of construction workers crucial to supporting the government’s homebuilding drive.

Mark Reynolds, Executive Chair Mace, Co-Chair of the Construction Skills Mission Board and Co-Chair of the Construction Leadership Council said: “This is fantastic news and demonstrates that Government is committed to working with the construction industry to deliver 1.5m homes by the end of this Parliament and its ambitious plans for infrastructure delivery.

“It’s a hugely significant funding package, and the establishment of the Construction Skills Mission Board will enable us to collaborate with Government to drive change at pace.

“Understandably, construction firms across the country are looking for certainty of pipeline before they commit to investing in new jobs and skills – but this investment by the Chancellor will be critical in giving them the confidence they need. There is now no excuse – industry must embrace the Government’s growth mission and match their ambition.”

Tim Balcon, CITB (Construction Industry Training Board) Chief Executive, said: “We are delighted with the support the Government is giving the construction sector with increased investment.

“This package will provide vital support, where it is needed most – it will cut straight to the heart of the construction industry being able to address the challenge of building 1.5 new homes for people that desperately need them. 

“As an industry, we now need to grasp this opportunity and play our part in delivering it. I genuinely believe this is a once-in-a-generation chance to us to recruit and train our workforce – equipping more people with the skills they urgently need now and in the future.” 

Final phase of Granton Station View ‘net-zero ready’ development begins

The development of 75 affordable, ‘net-zero ready’ homes at Granton Station View, led by the City of Edinburgh Council, has reached its final phase now that rigorous testing is underway to validate performance standards. 

Across three pilot projects, including the Granton site, the Edinburgh Home Demonstrator (EHD) programme is set to deliver 324 homes designed to achieve a ‘net-zero ready’ standard. This is achieved by improved building fabric performance that exceeds the current Building Regulations coupled with a zero-emissions heating system. Granton Station View was built by construction and manufacturing group, CCG (Scotland). 

The University of Edinburgh is now conducting detailed, in-situ performance tests to measure and monitor the performance standard before occupancy, with results expected in Spring 2025. The University is measuring the u-value and airtightness of the buildings as well as thermal imaging the homes, to name a few.  

A 12-month monitoring period following occupancy will further assess the homes’ performance. During this time, occupants will also be asked to participate in surveys to understand behaviour that influences energy efficiency and to capture insights into the impact of and experiences with zero-direct-emissions heating systems.

The University will also be capturing the electricity usage via the property distribution board, monitoring the efficiency of the communal heating system and internal air temperature analysis using surface-mounted sensors.  

Now that the EHD programme is well underway with the delivery of its pilot projects, the six local authority partners of the Edinburgh and South East Scotland City region Deal have committed to establish and manage the Regional Delivery Alliance (RDA) to apply the lessons learned from the EHD programme to refine and scale the performance standard.

By consolidating outputs from the EHD programme, the RDA is applying a cohesive approach to procurement, housing typologies, and performance specifications across the six local authority areas.  

The Regional Delivery Alliance has secured funding and endorsement from regional partners for an initial two-year term, running until March 2026. The RDA will play a vital role in supporting local authorities, registered social landlords, and the private sector in the South East of Scotland, ensuring the successful delivery of affordable, energy efficient housing. 

City of Edinburgh Council’s Housing, Homelessness and Fair Work Convener, Lezley Marion Cameron said: “Thanks to the collaborative efforts with our partners at the Edinburgh Home Demonstrator programme, we’ve been able to deliver high-quality, energy efficient homes that will provide much needed housing for individuals and families.

“The testing being performed will verify that the homes achieve the high standard expected and I look forward to seeing the results. 

“The homes at Granton Station View are designed with the latest technology to keep energy bills low, ensuring that families can live comfortably while benefitting from a sustainable, future-proofed living environment. Not only will they reduce carbon emissions, but they also provide another avenue for tackling the housing emergency.” 

Dr Julio Bros-Williamson, Chancellor’s Fellow in Net Zero Buildings at the University of Edinburgh said: “The evaluation of the homes is the culmination of a lot of hard work from the stakeholders of this pilot project, from the initial design and energy aspirations to the construction and delivery on site.

“The tests we are conducting will help to verify and provide in-depth knowledge of the initial performance of a sample of flats representative of the whole development. Projects like this provide a beacon of knowledge to transition to net zero homes of the present and future.” 

CCG Managing Director, David Wylie, said: “Granton Station View is a pioneering development that will help to shape the future of affordable, net zero housebuilding in the Edinburgh and South East City Region.

“As main contractor, CCG led its delivery through use of our advanced, offsite methods of construction – a key strand of the EHD initiative’s philosophy and an integral component to achieving the rigorous design standard and future operational net zero carbon capability. 

“We look forward to receiving the results and once again give thanks to The City of Edinburgh Council, the design team and wider delivery partners for their support throughout the project’s journey.” 

To keep up to date about the Edinburgh Home Demonstrator and Regional Delivery Alliance, follow the EHD LinkedIn page:

https://www.linkedin.com/company/edinburgh-home-demonstrator 

Quarterly Housing Statistics published

New housebuilding

There were 21,825 all-sector new build homes completed in Scotland in the year to end June 2022, according to quarterly statistics on housebuilding and affordable housing supply published today by Scotland’s Chief Statistician.

This is an increase of 9% (1,806 homes) on the 20,019 completions in the previous year. Increases were seen across private-led new build completions (4% or 615 homes), local authority new build completions (27% or 540 homes), and housing association new build completions (21% or 651 homes).

Meanwhile the number of new build homes started across all sectors decreased by 13% (2,765 homes), with 19,060 starts in the year to end June 2022, down from 21,825 starts in the previous year. Private-led new build starts decreased by 15% (2,611 homes) and local authority new build starts dropped by 12% (234 homes), whilst housing association new build approvals increased by 3% (80 homes).

Separate figures published as part of the UK House Price Index show a total of 12,013 private new build sales transactions in Scotland in the year to end August 2022, up 4% (508 transactions) on the 11,505 transactions recorded in the year to end August 2021.

Latest social sector new housebuilding figures for the year to end September 2022 show an increase of 17% (982 homes) to 6,704 completions, with local authority completions rising by 40% (799 homes) to 2,792 and housing association completions up by 5% (183 homes) to 3,912.

However social sector starts fell by 16% (797 homes) to 4,161, with local authority starts increasing slightly by 1% (11 homes) to 1,910 and housing association approvals decreasing by 26% (808 homes) to 2,251.

Affordable Housing Supply Programme

Separate quarterly statistics on the Affordable Housing Supply programme show there were a total of 2,565 affordable homes completed in the latest quarter July to September 2022. This brings the total number of affordable homes completed in the 12 months to end September 2022 to 9,449, an increase of 2% (219 homes) on the 9,230 homes completed in the previous year. There were increases in the number of completions for social rent by 17% (1,127 homes), however affordable rent completions decreased by 28% (387 homes), and affordable home ownership completions fell by 42% (521 homes).

Meanwhile there were 1,028 affordable homes approved in the latest quarter July to September 2022, which brings the total number of affordable homes approved in the 12 months to end June 2022 to 7,160, a decrease of 16% (1,414 homes) on the 8,574 homes approved in the previous year. There were decreases in the number of approvals for social rent (by 13%, or 813 homes), affordable rent (by 18%, or 195 homes), and affordable home ownership (by 37%, or 406 homes).

There were 2,172 affordable homes started in the latest quarter July to September 2022, which brings the total number of affordable homes started in the 12 months to end September 2022 to 8,256, a decrease of 19% (1,877 homes) on the 10,133 started in the previous year. There were decreases in the number of starts for social rent (by 11%, or 804 homes), affordable rent (by 37%, or 548 homes), and affordable home ownership (by 42%, or 525 homes).

Quarterly affordable housing supply statistics are used to inform progress against Scottish Government affordable housing delivery targets, in which the ambition is to deliver 110,000 affordable homes by 2032, of which at least 70% will be for social rent and 10% will be in remote, rural and island communities.

There have been a total of 4,927 completions so far against the 110,000 target, across the period 23 March 2022 to 30 September 2022, consisting of 4,188 (85%) homes for social rent, 418 (8%) for affordable rent, and 321 (7%) for affordable home ownership

Figures on the remote, rural and island communities element of the target are planned to be reported on as part of future annual affordable housing supply out-turn reports, although we are considering whether it is feasible for these figures to be reported on a quarterly basis in addition to this.

Latest annual figures on long term empty and second homes

The 42,865 long-term empty properties as at September 2022 is a decrease of 2% (901 properties) from the 43,766 properties in 2021. Across the same time period the number of second homes has increased by 2% (397 homes) from 23,890 to 24,287.

Housing Statistics for Scotland Quarterly Update.

Work begins on the new David Lloyd Edinburgh Shawfair development

David Lloyd Leisure, Europe’s leading health, fitness, and leisure group, has announced that work has begun on the much-anticipated David Lloyd Edinburgh Shawfair development, with the club opening in summer 2023.

Located in the new residential development area of Shawfair, Midlothian, which lies to the southeast of Edinburgh, the club will offer world-class health, fitness, racquets and spa facilities. David Lloyd Edinburgh Shawfair is anticipated to become a popular leisure destination for families as well as health and wellness enthusiasts in surrounding areas.

David Lloyd Leisure expects that the new club will generate up to 75 jobs, and the group said that it will explore opportunities to develop local community partnerships over the coming months. The development was granted planning approval in April 2021 following extensive consultation with the local community in 2020.

At the time of its planning approval, Midlothian Council officers said that “the proposal aligns with the masterplan principles for Shawfair to encourage sustainable, healthy lifestyles within a vibrant community”.

Construction began in October 2022, and the development phase is expected to generate more than £4 million for local subcontractors and companies and involve 50-60 construction jobs.

The centrepiece of the club will be the 100+ station gym, which will house David Lloyd Clubs’ cutting-edge gym concept with an unrivalled array of best-in-class equipment.  There will be three group exercise studios; a hi-tech indoor cycling studio, high impact studio and a Mind & Body studio.

There is also a Clubroom café bar with a family zone, an indoor soft play area for the younger ones, and a business hub. An outdoor patio area will offer a space for outdoor dining and drinking on warmer days and evenings.

Michelle Chambers-Cran, Regional Manager at David Lloyd Leisure, said: “We are excited to be starting work on David Lloyd Edinburgh Shawfair and to be one step closer to bringing this new family-friendly leisure destination to life next summer.

“We know that people of all generations will relish what the club has to offer, from the state-of-the-art gym, racquet and spa facilities to the clubroom and children’s activities.

“Our philosophy is to create incredible health and wellness spaces where family and friends can spend quality time together.

“We look forward to engaging with the local community as the development takes shape over the coming months and would encourage those who want to follow our progress to register on the website for updates.”

The club will have a 250-space carpark and is well-connected to Edinburgh and surrounding towns in Midlothian and East Lothian by nearby bus, rail and cycle links.

Those who are interested in following developments at David Lloyd Edinburgh Shawfair can register for updates at: https://www.davidlloyd.co.uk/clubs/edinburgh-shawfair/.

Glenigan review shows major projects are propping up UK construction

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

The Review focuses on the three months to the end of October 2022, covering all major (>£100M) and underlying (<£100M) projects, with all underlying figures seasonally adjusted.

It’s a report which provides a detailed and comprehensive analysis of year-on-year construction data.

The key takeaway of the November Review is a softening in the downward trajectory of project-starts registered throughout the second half of 2022. However, this brief period of respite should be approached with caution as geopolitical turmoil persists in Eastern Europe, material and energy costs soar, and the UK enters a recession.

Whilst the sector overall experienced relative stability in the three months to October, with project start levels remaining largely unchanged, figures were still down 4% against the previous year.

Underlying Issues

Major project starts performed well, helping to maintain sector-wide stability, rising an impressive 28% on the preceding three months to stand 19% up on a year ago.

The same could not be said for underlying project starts, which plummeted 17% against the previous three months and were 13% down on 2021 levels.

Overall main contract awards slipped back 7% against the preceding three months, 5% lower than a year ago. Although major projects performed well, growing almost a quarter (24%) on 2021 levels and up by a fifth on the three months to October, underlying projects declined by 13% against last year and 15% compared to the previous three months.

Despite the November Review’s generally sluggish outlook, there are indications of gradual recovery, with a pipeline of work starting to flow following almost six months of blockage. Refreshingly, detailed planning approvals were up 29% against the preceding three months and a nifty 22% higher than 2021 levels.

Major projects rose a stunning 99% compared to the previous three months and an even more monumental 126% up on last year’s figures. Underlying approvals dipped a modest 2% on 2021 but, encouragingly, increased 8% on the preceding three months.

Commenting on the results, Glenigan’s Economic Director, Allan Wilen, says, “UK construction continues to be buffeted by myriad external headwinds, many of which are entirely out of the industry’s control. However, it was encouraging to see a significant uplift in major projects over the period covered by the Review.

“Of course, the release of the November Review comes in the wake of The Chancellor’s sober Autumn Statement, which will no doubt have an effect on future iterations of this report. Significantly, as part of his drive for growth, Hunt outlined the largest public works package for 40 years and substantial funding for critical infrastructure, which will no doubt provide the shot in the arm many contractors have been looking for. Furthermore, the commitment to reduce built environment emissions by 15% by 2030 will provide plenty of opportunities for retrofit specialists.

“No doubt many housebuilders and developers will feel let down, particularly as the one significant point around the ending of Stamp Duty relief will no doubt disincentivise potential buyers in the second half of 2023.”

The Sector specific and regional Index, which measures underlying project performance, was characterised by a bottoming out of project-start levels. However, recent events have dented market confidence, meaning levels remain relatively depressed.

Sector Analysis – Residential

The value of residential work starting on site fell 21% against the preceding three month period to stand 10% lower than a year ago.

Drilling down into the figures, social housing project starts fell a substantial 26% on 2021 levels, yet fared less poorly against the previous three months to the end of October, only dipping 7%. This was a relatively good performance compared to other verticals.

In contrast, private housing dropped 24% compared to the preceding 3 months but only 6% against 2021 levels.

Sector Analysis – Non Residential

Bright spots were few and far between, however, office project starts experienced a good period, rising 11% against the preceding three month period to remain unchanged on a year ago. Industrial starts also experienced modest growth during the Review period, but remained 15% behind 2021 figures.

Hotel and leisure experienced the sharpest decline of any vertical (-38%) against the previous year, also slipping back 19% against the preceding three months.

Education (-24%) and health (-41%) fared little better in the three months to the end of October, respectively crashing 28% and 31% compared to 2021.

Utilities construction starts were the only ones to experience growth on last year (+14%), despite tumbling 15% against the previous three months. Looking at the wider civils landscape, work starting on site slipped back 13% against the previous three months to remain largely unchanged on a year ago.

Regional Performance

Regional performance was generally weak.

Once again, Northern Ireland posted the most positive results, increasing 16% against the preceding three months, to stand an impressive 35% higher than a year ago.

Scotland also had reasons to be cheerful, with starts 10% up on 2021 and 19% up on the preceding three months.

Whilst project starts in Wales advanced on a year ago (+25%), they slipped back 5% on the preceding three months. The North West performed relatively well compared with other regions and, whilst project-starts remained unchanged on the previous three months, they dipped 2% against the previous year.

All other regions experience a decline against the preceding three months and previous year.

To find out more about Glenigan 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 17th November 2022, it’s unlikely it will provide an immediate boost in activity.”

November 22 Index Graph.jpg

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.

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Construction: Gloomy outlook offset by modest pipeline recovery

  • Overall project starts decline 9% on previous quarter
  • Major project contract awards and planning approvals up on 2021 figures by 59% and 158% respectively
  • Civils project starts modestly increase due to a spurt of utilities-related activity

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

This Review focuses on the three months to the end of September 2022, covering all major (>£100m) and underlying (<£100m) projects, with all underlying figures seasonally adjusted.

It’s a report which provides a detailed and comprehensive analysis of year-on-year construction data.

The central finding of the October Review reflects recent, previous iterations, with high materials and energy costs, economic and political chaos and ratcheting building regulations keeping the market depressed for the foreseeable future.

However, whilst project starts dipped once more (-9% against the preceding three months), a modest rise in main contract awards (+3%) and detailed planning approvals (+3%) hint that recovery, although not immediate, is on the horizon.

Glimmers of Hope

The slight growth in the project pipeline can largely be attributed to a jump in major project contract awards, which were up 27% against the preceding three months, 59% higher than a year ago. Equally, major project planning approvals were up an impressive 58% by the end of Q.3, to stand a staggering 158% up on 2021 figures.

However, underlying performance was comparatively week, tempering results, dipping 8% compared the previous three months in contract award terms, 6% down on last year. Despite planning approvals increasing 8% over the past quarter, they remained 10% lower than a year ago.

Once again, major projects saw a respectable rise in work starting on site, climbing by a third in comparison to the preceding three months, however this figure remained 14% lower than the same period in 2021.

Underlying project-start performance was dismal, posting a 27% decline against the preceding three months, 23% down on last year.

Commenting on the results, Glenigan Economics Director, Allan Wilen, says, “The sector has faced considerable amounts of turbulence over the past twelve months. A new Prime Minister, changing of the ministerial guard and wildly fluctuating markets have done nothing to inspire consumer and investor confidence.

“At the time of this Review’s release, we find ourselves in a state of flux, with yet another new premier, however, the pound rallying once again and the promise of economic stability from the autumn financial statement should go some way to calming the choppy waters.

“With activity trickling back into the pipeline, everyone in the sector hopes the flow of awards and approvals picks up once again, even if project starts currently remain stagnant.”

The sector-specific and regional index, which specifically measures underlying project performance, was characterised by overall decline. However, a few bright spots could be seen within an otherwise gloomy picture.

Sector Analysis – Residential

Overall, residential work starting on site fell by a third during Q.3, to sit 24% lower than a year ago.

Private housing performed particularly poorly, plummeting 37%, 20% lower than in 2021. Social housing also fell by 13% and 36% against the same set of criteria.

Sector Analysis – Non-Residential

Sharp decline was the consistent theme across most verticals during Q.3, education and health weakened 37% and 39% respectively against the preceding three months. Both were also down on 2021.

Office project starts fell dramatically, 30% against the preceding quarter and 37% compared to the previous year.

Industrial (-13%) and retail (-14%) experienced relatively small declines against the preceding quarter, but dropped 16% and 27% respectively against last year’s performance scores. Hotel and leisure was 13% up on the preceding three months but down 28% on 2021 levels.

Civils provided a welcome lift in an otherwise disappointing period, increasing 1% on the preceding quarter and over 10% on last year. Particularly, growth can be attributed to a spurt in utilities work starting on site, as well as a relatively steady stream of infrastructure project-starts.

Regional Performance

Once again, Northern Ireland performed well with project-starts increasing 31% against the preceding quarter, standing 51% up on a year ago. Wales also delivered positive results, remaining unchanged on the previous three months, rising 7% on 2021.

Unfortunately, the outlook was decidedly bleaker across the rest of the UK. The North East (-38%), East of England (-36%) and London (-30%) and Scotland (-26%), all slide back on the preceding quarter. London, which has seen a steady decline in activity over 2022, also posted the largest decline against last year, diving 45%.

Wilen concludes, “Sector verticals and the UK regions are feeling the economic pinch and, whilst a few major projects are bolstering results, the underlying figures indicate there’s a massive mountain to climb to stabilise the sector.

“The new Government needs to get a grip of the situation from day one and offer a clear strategy to support UK construction, which currently lacks the rigorous policy from key departments to recover and progress.”

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Work set to commence on next phase of homes at Blindwells

The latest housebuilder to acquire development land after securing planning permission for new homes at Blindwells will start on site this month, with the first properties expected to be available Spring 2023.

Stirling-based housebuilder Ogilvie Homes, part of the Ogilvie Group, will deliver 77 homes, including 23 affordable properties, at the New Town located to the east of Prestonpans in East Lothian.

In September, East Lothian Council granted planning permission for the £17m scheme which is to be developed on a 4.5-acre plot at the north-west of the Blindwells site.

Ogilvie’s development will comprise of a mix of two, three and four bedroomed residential properties available for private sale, as well as a range of two and three bedroomed homes for social rent.

Bruce Lindsay, development director at Hargreaves Land, said Ogilvie’s development marks the next ‘exciting’ phase of the site’s overall long-term regeneration. “This is excellent news and a welcome addition for local housing stock, particularly the availability of more affordable accommodation.

“Ogilvie are committed to creating a development that will meet community needs and deliver exceptional high-quality homes for East Lothian. This exciting phase in the Blindwells regeneration story marks another chapter of positive change to this part of Scotland.”

The project will see the construction of detached, semi-detached and terraced 2-storey properties. Ogilvie will also construct four two-bedroom cottage flats as part of the affordable element of the scheme.

Ogilvie will join Bellway, Persimmon and Cruden Homes on site at Blindwells which has planning consent for 1,600 new homes and proposals which include education facilities, a healthcare hub, and local retail outlets.

Julie Leece, head of land at Ogilvie Homes, said: “We’re delighted that planning permission was granted last month and look forward to bringing our plans for Blindwells to fruition.

“Our development will deliver much needed quality homes within the wider masterplanstrategy, contributing significantly to meeting local housing needs and creating a strong sense of community.”

Part of the £200 million turnover Ogilvie Group, Ogilvie Homes is one of Scotland’s fastest growing house builders with current sales of £53m and developments in Boness, Crieff, Plean and West Kinfauns among other sites. The company offers new homes and social housing properties that combine exterior character with interior spaciousness and high levels of craftsmanship.

Real estate consultancy firm JLL is acting as the residential land agent for Blindwells and handled the sale of Plot 11 on behalf of Hargreaves Land.