Most of us wish the Labour Government well in its efforts to ‘turn the page’ on a range of nationally important issues including building more homes and boosting the economy. But beware, Sir Keir – the ink on some of yesterday’s news is still wet and liable to smudge.
Construction News’ Ian Weinfass recently reported that insolvencies in the construction business show that it was the worst hit sector in UK industry over the year up to May 2024 and it is thought these figures will remain high until the Government’s plans for new homes and infrastructure are clear and underway. But with fewer builders on the block, construction costs will almost certainly stay expensive; deterring investors and developers as well as possibly leading to the delay or cancellation of some current and near-future projects. When market conditions are rough and potential losses scary, it may take more than new Government initiatives to tempt players back into the building game to try their luck again. At our University, getting prospective students to apply for construction courses seems to be getting tougher every year. This could be a sign of the times. Perhaps an industry which has often been seen as low-profit and high-risk as well as very hard work, just isn’t that appealing anymore.
In the same newspaper, Charlotte Banks’ piece on the financial fallout from the HS2 cancellation could be the first of many alarming stories related to this sorry saga. A recent report by the National Audit Office expects the now terminated second phase to cost £100m without any significant construction work to show for it and operations already underway are likely to take until 2027 to reverse. We can expect legal fallout too, with contracts which have already been entered into having to be terminated at great expense to contractors and other stakeholders.
From metaphorical ‘hot potatoes’ to ‘hot topics’ (literally). At London’s FutureBuild Conference in March, the troubling issue of overheating in newer buildings, in particular Care Homes and apartments, was once again on the agenda and the subject of a recent research project. Although amendments to Building Regulations over the past decades have successfully focused on improving energy efficiency, i.e. keeping the heat in; it seems that the challenge of keeping heat out, has been harder to meet. As the climate warms and modern buildings rely increasingly on lightweight, low thermal mass construction (e.g. utilising prefabrication, Modern Methods of Construction/3D Printing) occupier discomfort and health issues in many newer flats (often single-aspect), Care Homes and other building types are, it seems, becoming common problems. The research team included the Chartered Institute of Building Service Engineers (CIBSE) and the universities of Exeter and Oxford Brookes. I understand that the Government is currently engaged in industry-wide consultation regarding possible changes to the Building Regulations to tackle this issue. Stay cool and watch that space.
Property Chronicle featured an article warning the Government about their plans to levy additional taxes on the ‘ultra-mobile rich’. This could result, it was argued, in an exodus of millionaires from our shores and consequently, a reduction in tax income. No details were given but I guess we’re talking about super-wealthy people with assets of many, many millions of pounds. It seems strange that anyone would choose to locate/re-locate to save a relatively small percentage of their already vast fortune. How much better can you eat with 100 million in the bank rather than 95? The great American composer Irving Berlin once said; “I want to pay taxes. I love this country. I owe my success to my…country.” Most of us are happy to pay tax; to invest in our own business as it were, i.e. UK PLC, because we’re all shareholders and, when it’s done right, we are all beneficiaries.
Finally, on a more optimistic, life-affirming note, the RICS Journal’s Modus supplement included an inspirational report on Arup’s Playful Cities Design Guide which featured 7 City Spaces which encourage safe fun and games for children growing up in urban environments. Some projects are at street level, others on protected roof tops and as journalist Mark Williams points out: “Through play, children can acquire and put into practice relational skills that foster personal development and help them grow into well-rounded adults who enhance communities and society.”
Good stuff. That’s another one for the new Government’s already very long to-do list!
