Issue 496 | 8 September 2025 - Turner & Townsend alinea

UK construction and property

Wastewater concerns | According to the Home Builders Federation, almost 30,000 homes (including 7,000 affordable homes) are blocked by planning authorities over perceived drainage capacity concerns.
Fast-track progress | The government is planning to review the fast-track infrastructure consenting process which was designed by the previous government as no applications have been received. A consultation has been opened until late October.
Scaffold training | Following the closure of the previous oversight body in 2024, a new independent Sector Representative Organisation (SRO) has been introduced for the scaffolding and access sector. It will work alongside the Construction Industry Training Board (CITB) and the Engineering Construction Industry Training Board to oversee course development, training, and certification standards.
Construction output | S&P Global’s Construction PMI suggests a slowdown in construction output as the index recorded 45.5 in August, a marginal increase from 44.3 in July. Respondents reported a lack of new work to replace completing projects. Expectations for the year ahead lowered slightly too.
Labour challenges | The latest SME State of Trade Survey by the Chartered Institute of Building (CIOB) and the Federation of Master Builders (FMB) claims that a quarter of firms have had to cancel jobs because of skills shortages, and 60% say shortages are causing delays.

Chinese exports | Growth in exports slowed to the lowest rate in six months but still saw year-on-year growth of 4.4%. Imports rose by 1.3%.
German exports saw a surprise monthly fall of 0.6%. Analysts expected growth of 0.1%.
US jobs market | The latest US jobs report showed a net loss of 13,000 jobs and the unemployment rate edged up to 4.3%, its highest since 2021.
Manufacturing | The latest manufacturing PMI from S&P Global showed that global manufacturing output, new orders and employment all returned to growth in August, with a reading of 50.9, from 49.7 in July. Price pressure, tariff issues and lead-in times were all cited as challenges.

ONS updates | The ONS corrected its delayed retail sales index after adjusting its seasonality calculations. The update showed that recent figures had been overstating monthly volatility in the first half of the year. The new dataset shows that spending had a strong start to the year but has fallen since March.
Staffing issues | The latest Business Insight Survey from the ONS shows that just under half of businesses reported increased staffing costs, and 31% expecting them to rise further in the next quarter. 31% are also struggling with a lack of qualified applicants or low application numbers.
Job cuts | A survey by the Bank of England revealed that businesses of all sizes are reducing employment at an annual rate of 0.5%, with most citing changes to NIC as the cause.
Hiring aspirations | PwC has said that it will hire fewer graduates this year because of the wider economic slowdown, however, it will still see 1,300 new recruits.
Night time economy | This week’s London tube strikes could cost the night time industry £150m, according to the Night Time Industries Association.

Cement | The Mineral Products Association reported that UK cement production has fallen to its lowest level since the 1950s, and to half the level seen in the 1990s. It attributed the fall to high energy, regulatory, and labour costs.
Gold | The price of gold has reached a new peak of $3,500 per ounce, driven by investors looking for value amid a low-growth, high-debt, and politically volatile market.
Currency collapse | The last local currency in Britain has collapsed. Created 17 years ago, the Lewes Pound has disappeared after shops stopped accepting the notes, and card payments became more popular.
Iron ore prices are expected to increase this week following a boost to sentiment in China. Steel production in China was recently reduced to prevent pollution during a major military parade.

Climate | Provisional statistics from the Met Office confirm that Summer 2025 is officially the warmest summer on record for the UK. The UK’s mean temperature from 1 June to 31 August stands at 16.10°C surpassing the previous record of 15.76°C, set in 2018.
Dirty air | Research from the William Harvey Institute at Queen Mary University of London found that people living in areas of the UK with the worst levels of air pollution are 27% more likely to develop heart failure and 7% more at risk of stroke.
US air pollution | A study by Princeton University reported that if the U.S. sought to improve the climate, the number of U.S. deaths caused by air pollution could be reduced by 6,000 a year by 2030.
The interconnected economy | The UN Chief of International Development, Achim Steiner, has said that more spending on defence would be pointless unless Western governments also tackle the climate crisis.