UK construction and property
- Artificial Intelligence | A report by RIBA revealed that 41% of architects have occasionally used artificial intelligence (AI), with 43% saying it made the design process more efficient. Whilst the majority of architects say that they will increase their use of AI, a third of them see it as a threat to their profession.
- Surplus materials | A Reuse Hub will be opened in Wolverhampton later this year, to keep over-supplied materials out of landfill. It expects to divert 600 tonnes of material in its first year.
- Tax evasion | Analysis by tax intermediary Rift revealed that 40% of tax evasion is accounted for by building, construction, and engineering trades.
- House building shortage | The Competition and Markets Authority published a report into possible information sharing between housebuilders. However, its overview of the planning system has caught the attention of many as it suggests a streamlining of the process and recommends increasing the capacity of planning departments. If found guilty of anti-competitive behaviour, the housebuilders could receive fines of up to 10% of their annual worldwide turnover.
- Social housing | Research by CEBR on behalf of Shelter and the National Housing Federation concluded that by building 90,000 social homes, the next government could add £51.2bn to the economy, including £12bn profit to the taxpayer. Benefits are expected to include:
- £4.5bn savings on housing benefit
- £2.5bn income from construction taxes
- £3.8bn income from employment taxes
- £5.2bn savings to the NHS
- £4.5bn savings from a reduction in homelessness
- £3.3bn savings to Universal Credit
- Skills shortage | The University Vocational Awards Council (UVAC) has reported that only 21% of the UK’s top 100 universities offered construction apprenticeships.
- Take up | Denovo’s latest analysis shows that the central London office market was generally resilient in 2023 with record headline rents and strong take up. In total, take-up amounted to 12.7m sqft, slightly lower than 2022’s 12.9m sqft.
- Reuse | The High Court quashed Michael Gove’s decision to block Marks & Spencer’s development at its flagship Marble Arch store in London saying that the “presumption for the reuse of buildings” was not a feature of the National Planning Policy Framework.
- Infrastructure funding | Cities across England have received £4.7bn of funds which were previously allocated to HS2 Phase 2. The Prime Minister said that the cities will be empowered to “invest in the transport projects that matter most to their communities – this is levelling up in action.”
- Levelling up projects | Responses to a Freedom of Information request, as reported in the Guardian, show that less than 20% of the projects sanctioned under the £3.6bn towns fund were expected to be completed by the end of February and less than half will complete by the November. Projects have been delayed due to high interest rates and inflation, and a lack of commitment to adapting to those challenges.
- Boring news | A third tunnel boring machine has been launched for HS2 Phase 1 in London. A fourth and final machine will launch next month.
- RAAC | Aberdeen City Council has rehoused tenants after surveyors found that around 500 homes had been built with reinforced autoclaved aerated concrete. Council officers are considering how to ensure long-term viability for the site, ranging from remediation to demolition.
