UK construction and property
- HS2 delay | A report from the House of Commons public accounts committee suggests that MPs were not aware of the cost impacts of delaying HS2. Earlier this year plans were delayed for an unspecified period to enable the project to be put on a “more realistic and stable footing.” The impact is expected to cost £200m. The report added that ministers had not learnt lessons from earlier troubled infrastructure projects.
- National transport strategy | The Institute of Civil Engineers has recommended that a 20-30 year national transport strategy for England should be developed with the overarching vision of creating a sustainable transport network and a later review should decide whether a UK-wide strategy is needed.
- Refit boom | A lack of Grade A office space in Scotland’s cities is driving a refit boom, according to JLL. Baseline demand for space has been resilient as has the number of transactions, but transaction volumes are below the ten-year average showing that occupiers are looking for less space.
- Logistics planning | The British Property Federation (BPF) has welcomed a review into how the logistics and freight sector can be boosted by planning reforms under the Government’s Future of Freight – a Long Term Plan review. The BPF claims that policy has underestimated the amount of space needed in the UK.
- Safety | More people died in work-related incidents in construction than in any other sector last year. 45 building workers died on the job in 2022/23, up from 29 in 2021/22 and 39 in 2020/21.
- Water saving | The Construction Leadership Council has set out guidelines to reduce water use on sites as the UK enters a period of potential shortages due to hot weather. The guidance can be found here.
- Administration | According to CreditSafe, the number of construction company failures fell to 20 in June, from 42 in May, but significant concerns exist over the impact of the collapse of Henry Construction Projects Limited and the health of the bond market.
- PMI Output | The most recent S&P Global/CIPS UK Construction PMI fell to 48.9 in June, a fall from May’s 51.6. It marked the first fall below 50.0 since January. The steepest fall was seen in residential, which reached 39.6.
- Construction output was a bright spot in the UK’s economy last year as it outperformed European comparisons, but is forecast to fall back this year, according to Euroconstruct. Interest rates, inflation, and fading effects of the post-covid recovery are all weighing on the sector.
- Wages | A pay deal for the 1,000 construction workers at EDF’s seven power stations has avoided a strike. The engineering roles will be covered by the National Agreement for the Engineering Construction Industry which guarantees pay and conditions.
