October brings a mixed bag of news within the construction and contracting market. With house building on the rise, the commercial work is set to stagnate next year. Nonetheless, there is plenty of activity aiming at reviving the industry. Keep reading for more insights…
New home building plans hit highest level for a decade This month Construction Enquirer announced a 6 percent jump in house building, the highest Q3 figure since the recession. Moreover, seven out of the twelve UK regions experienced growth in new build registrations compared to the same period last year. This is positive news for the construction industry and home buyers, considering the current political and economic fluctuations that have caused wide-spread concern about the future of the UK construction industry.
Government seeks views on retentions reform
According to Electrical Contractors’ Association (ECA) and the Building Engineering Services Association (BESA), £10.5bn of the overall construction sector turnover of £220bn is held in retentions. This includes some £40m lost by small firms each year due to upstream insolvencies. Consequently, the issue has been a subject to public debate, with the government planning to phase cash retentions by 2020.
House-builders called to Downing Street summit
The Prime Minister Theresa May met with the biggest house-building companies to discuss how to fix the broken housing market. For many people, home ownership has moved out of reach therefore, plans to increase housing supply is now government’s priority, together with modernising the construction methods, overcoming the skills gap and making sure planning permissions granted by councils were delivered into new homes.
Subcontractors wanted for schemes across Bristol
On Thursday 12th October, subcontractors and suppliers met up with major Bristol buyers to discuss the upcoming contracting opportunities and form new and productive relationships. With big names including Kier, Farrans and Mears, the event helped SMEs to secure new work contracts.
Construction growth to stagnate next year
The Construction Products Association (CPA) forecasts no growth next year due to falls in office, retail and factory work. Construction is expected to bounce back again to 2 per cent growth in 2019 as infrastructure activity kicks into gear, including projects in rail and water & sewerage such as HS2 and the £4.2bn Thames Tideway Tunnel. House building will be a primary driver of growth, with the government’s Help to Buy equity loan accounting for 40% of new homes