The Week That Was – 21 June 2024

Welcome to the week that was, a round-up of key events in the construction sector over the last seven days.

The Royal Institution of Chartered Surveyors (RICS) and CBRE publish their comments on parties' plans for housing in run up to election

RICS and CBRE have provided their analysis of the general election manifestos and policy pledges of various political parties, including policies proposed by the Conservatives, Liberal Democrats, Labour, Green, and Reform UK.

In their manifesto, ‘Empowering a Sustainable Future’, published last year, RICS called for a housing delivery strategy aimed at meeting targets and creating affordable and safe homes for owners and renters.

As the parties release their plans and policies for the housing sector, including house-building targets and reforms related to renting, planning and energy efficiency, RICS has analysed the implications for the sector and the impact on homeowners, renters, and stakeholders in buying and selling, development and housing supply.

Meanwhile, CBRE has published its "Policy Pledge Comparison", comparing the three main parties' (Conservatives, Labour and Liberal Democrats) ideas for housing, the economy, planning, and energy and sustainability.

The full RICS analysis can be found here and the CBRE document can be found here.

Architects group warn Labour against traditional housing design trend

A group of leading architects, led by HTA Design chair Ben Derbyshire, has urged Labour to avoid relying on "historic" styles for future housing designs. In a letter to The Times, signed by notable figures including former chief architect Andy von Bradsky, the group cautioned against using AI-generated traditional imagery to address the housing crisis.

This response follows shadow housing secretary Angela Rayner’s announcement of Labour’s plan to focus on traditional designs to build 1.5 million homes if they win the July election.  The signatories emphasised that while learning from the past is important, future housing should reflect contemporary design and meet diverse community needs.  They instead argue for sustainable, walkable neighbourhoods with varied housing styles that fit local contexts, warning against "historical, aesthetic populism" and advocating for genuine design quality in new developments.

Read more here.

April fall for construction output

According to the Office of National Statistics (ONS), output for the construction industry declined by 1.4% in April 2024 which was caused by a decrease in both new work and repair and maintenance work.  Overall, construction output fared worse than the rest of the economy in the three months up to April 2024, declining by 2.2%, falling to its lowest level since June 2022.

The ONS suggested that "heavy rainfall and strong winds affected output in April".  However, Brian Berry, chief executive of the Federation of Master Builders blamed "the stagnation seen across the UK economy", as well as recent stormy weather.  

You can review the statistics here and read further commentary here.

CLC's offers advice to government ahead of election

The Construction Leadership Council (CLC) have published a "Letter of Advice for the Next Government" ahead of the election next month.  The letter contains proposals which the CLC say would "maximise the contribution of the construction sector to the UK economy" and would increase productivity and growth by 2% of GDP.

The letter sets out a series of policies which have been categorised into 5 key priorities: Pipeline, Procurement, Places to live, Performance and People.

The proposed policies include: (amongst other things) a presumption in favour of smaller construction sites to support SME House Builders and increase housing supply; and a commitment to publish an updated five-year National Infrastructure and Construction Pipeline within 10 days of any fiscal event.

The letter has been sent to the Conservative and Labour Party leadership.

You can read the letter here.

Wilkinson Eyre's plans to redevelop spy tunnels into visitor attraction get City approval

Wilkinson Eyre's plan to redevelop Second World War tunnels beneath central London into a visitor attraction has been approved by City of London planners. However, the project still requires approval from the London Borough of Camden, which will vote on 11 July.

The scheme aims to transform over 8,000 sq m of tunnels into a cultural attraction expected to draw two million visitors annually.  Located at 38-41 Furnival Street, the project includes integrating buildings, creating exhibition spaces, and an underground bar.  

Known as the Kingsway Exchange, the tunnels served as Blitz shelters and later as a covert operations headquarters.  The plan involves demolishing and reconstructing vacant buildings to establish a main entrance and retail area, including a gift shop.

To read more, please click here.

Building envelope firm shows sales growth for third consecutive year

The County Durham-based, CA Group, has reported another year of increased turnover and profitability, marking its third consecutive year of growth since the Covid-19 downturn. For the year ending 30 September 2023, the firm's turnover reached £117.2 million, up from £107.5 million in 2021/22. The firm is mainly involved in roofing and cladding elements of building envelope projects.

This 9% revenue increase resulted in a pre-tax profit of £11.4 million, with a margin of 9.7%, compared to the previous year’s profit of £7 million and a margin of 6.6%. The company, the fifth-largest envelope contractor by turnover, has been active in the logistics sector, including roofing services for Winvic and Stockley Park.

In its annual report, the company commented that that while uncertainty remains in the construction markets, the group is managing the risks through "the development of strong relationships across the market chain".

Read more here.

Authors for this week's edition: Ella Ennos-Dann, Nikita Austin, Natalie Chan and Tom Butterfield

Disclaimer: The information in this publication is for guidance purposes only and does not constitute legal advice.  We attempt to ensure that the content is current as at the date of publication, but we do not guarantee that it remains up to date.  You should seek legal or other professional advice before acting or relying on any of the content.