UK construction and property
- High risk buildings | RIBA has called for “assembly buildings” such as schools and train stations to be classed as “higher risk” buildings following last year’s publication of the Grenfell Inquiry Phase 2 report.
- Collusion | The Competition and Markets Authority (CMA) is extending its investigation into potential collusion by housebuilders by five months. The CMA expressed “fundamental concerns” over issues such as planning and market structures. It also voiced criticism about the slow speed of innovation in the sector.
- “National embarrassment” | An inquiry by the Public Accounts Committee (PAC) found that the condition of local roads in England are a “national embarrassment” and the backlog is growing every year, suggesting that the government needs to take it seriously. The PAC’s inquiry raised concerns that despite over a billion pounds a year being given to local authorities to maintain the roads, the Department for Transport does not know how the money is spent, and the funds are not ringfenced.
- Infrastructure | Three consortia have been shortlisted to build a commercial prototype fusion energy plant in Northamptonshire. The three will now enter into discussions with UK Industrial Fusion Solutions, a subsidiary of the UK Atomic Energy Authority Group.
- Railways | The Chancellor is expected to freeze all spending on new major rail projects until after the next General Election as three large projects are expected to consume all current funds. The existing schemes are HS2 Phase One, upgrades to the TransPennine line, and East West Rail, a new line which connects Oxford, Milton Keynes, Bedford, and Cambridge.
- Construction output | The latest data from the ONS shows that construction output grew 0.4% in November, after falling by 0.3% the month before. The main monthly contributions came from new private commercial work and non-housing repair and maintenance.
- Skills crisis | A survey by the Engineering Construction Industry Training Board (ECITB) has revealed that 71% of employers have experienced challenges in hiring workers, an increase since 2021 when only 51% reported challenges. Some of the reasons for the challenges were: a shortage of qualified workers, a mismatch between expectation and offer, and increased competition. The survey also showed that new entrants into the sector are not enough to counter a coming wave of retirements. 30% of platers, 24% of welders and 20% of pipefitters are over 60.
- Inclusive learning | An industry-specific training programme has been launched to support neurodiverse people working in the industry. The Neurodiversity in Construction Training Programme is available through the Supply Chain Sustainability School learning pathways, offering free training, covering topics such as ADHD and autism with dedicated modules on neurodivergence and acquired neurodivergence. This training programme was developed after research by the National Federation of Builders (NHB), published in 2023, revealed one in four construction workers considered themselves to have neurodiverse conditions. The NHB’s 2023 report is available here.
- International investment | A new trade deal between the British and Malaysian governments confirmed a £2bn investment to speed up the delivery of the Brabazon new town in the West of England. Alongside 6,500 new homes, of which 1,700 will be affordable, the scheme will also deliver student accommodation, schools, a higher education research campus and over 86 acres of public space.
- Lettings | 22 Bishopsgate has become fully let after agreeing a record rent for the City of £122 per sq ft last year for its top floor. Insurance Company Riverstone International recently signed a 15-year lease for the remaining space on the tower’s fifth floor.
