UK construction and property
- West End deals | Savills has reported a number of office deals and increased footfall, suggesting that the market is recovering. Footfall has increased 13% year on year, and the number of international visitors has increased 25% when compared to last year. BNP Paribas commented that the key fundamentals of rental growth, character, leisure offering and an attractive occupier base are strong in the West End.
- Damp and mould guidance | The Department for Levelling Up, Housing and Communities has published new guidance to understand and address the health risks of damp and mould in the home. It is targeted at the housing sector and sets out clear expectations for landlords.
- Strikes | More than 3,000 engineering construction workers operating under the Blue Book agreement will be balloted for strike action. The dispute is over pay, and that the value of pay has fallen progressively since the pandemic. Pay levels were frozen throughout Covid-19, and a two-year pay deal of 2.5% was given in January 2022.
- New orders | The latest S&P Global / CIPS UK PMI for construction posted a reading of 50.8 in August, lower than July’s 51.7, but still positive. Both commercial and civil engineering work expanded, offsetting a slump in housebuilding. The survey also found that total new order volumes fell for the second time in three months. The reduction in new residential work has been the steepest since 2009.
- Housebuilding | PwC’s Construction and Housebuilding Outlook claims that housebuilding will fall 21% this year, infrastructure will remain strong in the long term, and repair and maintenance will be more resilient than new build work. It suggests that overall construction output will decline by 5% this year before returning to growth next year.
- High street reform | The Chair of the John Lewis Partnership, has called on the government to set up a Royal Commission to review the health of town centres and how to revive them. She also commented that business rates, outdated planning rules and the “tourist tax” have all affected high streets.
