Tuesday, 18 April 2023

A rare piece of good news for house builders emerged in the latest Halifax index

 



Hodgkinson Builders have new Homes for sale in Ashbourne Derbyshire 


A rare piece of good news for house builders emerged in the latest Halifax index showing house prices rose fractionally in March (up by 0.8% compared to February) helped by an upturn in transactions and the first increase in mortgage approvals for six months.

Whilst the Halifax still expects an overall slowing in the housing market this year, the resilience reflected in the March figures provides some reassurance for private housing construction activity over 2023.

In particular, the large private volume house builders will find it easier to maintain sales – and hence construction activity – in the absence of the marked falls in house prices and poor market sentiment which were widespread after interest rates rose at the end of last year.

Improving customer demand

Indeed, the mood amongst the larger quoted volume house builders has brightened so far this year, helped partly by more sales of affordable units.

Bellway recently noted that it had seen customer demand improve since January. If its current reservation rates are sustained through the Spring, the company’s build programme is on track to deliver 11,000 homes in its current financial year (ending in July). This is only around 200 below the 11,198 which it built in the previous year.

Bellway has seen weaker private demand partly offset by a move to accelerate the construction of social homes. Although its rate of private reservations in the first half (ending in January) fell to 138 per week from 202 per week a year earlier, the firm’s level of construction completions in the period was virtually unchanged at 5,695 homes.

And whilst Bellway is spending less on new land, the company says it is well-placed to deliver a modest increase in the number of construction sites which it builds on by this summer.

After falling sharply at the end of last year, sales rates at fellow volume house builder Persimmon have also improved in the first eight weeks of this year. Whilst its legal completions are set to be down sharply this year, the company is still planning a significant construction programme involving some 8,000-9,000 new homes during 2023.

In another encouraging sign, Persimmon expects to build on an average of around 259 housebuilding sites across the country this year – a similar level to 2022 – and to drive outlet growth from 2024 onwards.

New developments

Glenigan data provides numerous examples of significant sites where volume house builders are planning to launch new developments in the months ahead and which offer new work opportunities for contractors and suppliers.

Monday, 17 April 2023

£750M LOST FOR TRAINING - THE TRAINING LEVY DO YOU REMEMBER THAT ?

 

£750M LOST FOR TRAINING COULD HAVE BEEN

USED FOR APPRENTERSHIPS INSTEAD THE SURPLUS MONEY WENT TO THE TAX MAN #BuilderBetterBritain @THESUN EXCLUSIVE by KATE FERGUSON a Report in THE SUN THE Treasury pocketed £750million from the apprenticeship levy last year rather than spend it on training.

Experts said the figures show the system needs reform to help more businesses take on trainees.

Under a "use it or lose it" approach, firms have to pay the levy and any unspent cash goes to Government coffers.

Some £3.2billion was raised in the year ending April

2022 but just £2.45billion was spent.

Over the past five years, Government has snaffled £4.4billion from the fund, the Policy Exchange think-tank said. The numbers were unearthed in parliamentary questions tabled by its director Lord Dean Godson.

Our Builder Better Britain campaign calls for more government training help.

Sun

No10 said: "Underspends are re-allocated to fund demand.

Monday, 3 April 2023

YOUNG brickies are laying the building blocks for their future thanks to brilliant apprenticeships -The Article from the Sun in full !


YOUNG brickies are laying the building blocks for their future thanks to brilliant apprenticeships - and can earn up to £2,500 a WEEK.

But despite the huge paypackets on offer in the trade, it is currently facing a chronic shortage of workers.

The Sun on Sunday’s Builder Better Britain campaign has been launched to highlight how the industry can give youngsters like Jeorgie Percer and Lucas Robinson a vital, well-paid career.

Apprentice Lucas, 22, says he is doing his “dream job” after ignoring the school teachers who told him he must go to university.

The 22-year-old landed a place to study business at Nottingham Trent Uni but at the last minute decided to become a bricklayer.

Lucas, from Nottingham, told The Sun on Sunday: “I’d encourage anybody to become a bricklayer. You can show off your skills, earn good money, keep fit, be in the fresh air and have a laugh. What’s not to love?

“I have been doing it for two years and can already lay 300 to 400 bricks a day which, once I qualify in June, will be worth £200 a day.

“But throughout school I was discouraged from doing it by the teachers, even though there was a course there to do it. Therefore I didn’t even see it as an option for years and just focused on getting the grades and going to uni.”

Lucas, who is set to earn £1,000 a week when he qualifies in June, added: “At the last minute though I got cold feet.  I realised it wasn’t for me. My dad is a bricklayer, he has mates in the business so he helped me get an apprenticeship —  and thank God he did.

“University might be right for some people but I’m pleased I changed my mind. I live in my own place, work outside and love everything about bricklaying.

“On site we really are like one big massive family who laugh all day together. We are in the open air enjoying life. And I know I have a career for the future because we need bricklayers in this country.”

Jeorgia Percer is another brickie who loves her job and fought to get to where she is today despite being discouraged from the trade.

She said: “In the final year of school we were able to go to college a day a week to do either brick-laying, farming or hairdressing.  I was told  I was doing hairdressing.

“As a kid you don’t know what you want to do so someone should have sat me down and discussed the options available. One day I said to my dad, as a joke,  I’d like to be a brickie.  He rang a college and got me an apprenticeship.”

Now Jeorgia, 22, from Monmouth, Gwent, and dad Mervyn work together. The self-employed qualified brickie loves working outdoors,   being her own boss and the workout that comes with her career.

She said: “On my college course there was only one other woman and I’ve only met two others on the job. But it is ace work.

“If I really grafted I could make £2,500 a week.  You are problem-solving, using your brain, using  muscles and having fun. I love being a brickie and  would en-courage young girls to join up too.”

There are only 70,000 skilled bricklayers working in Britain today, despite the Government’s plan to build 300,000 new homes a year.

The lack of young recruits and apprentices means the Government has now said  brickies, carpenters, plasterers, tilers and roofers are on the shortage occupation list.

Skills Minister Robert Halfon says £2.7billion is available to encourage businesses to offer more apprenticeships. 

Yet things could be better. Bricklayer boss Ian Hodgkinson says the Government should simplify  apprenticeship levies in order to make it easier for firms such as his to recruit.

Ian, 59, said: “I am proud to say that about a quarter of my team,  both men and women,  started as apprentices with me. But we pay the price for having app-rentices.”

The Apprenticeship Levy, introduced five years ago,  is a tax  on UK employers to fund apprenticeship training. Employers with an annual pay bill of more than £3million must pay it. There is also a CITB Levy, which is used to support construction employers to make sure industry has the skilled workforce it needs.

Ian, who runs Hodgkinson Builders in Derby, says: “The feedback I get from others in the industry is that the levies are just too complicated.

“We read that billions of Apprenticeship Levy funds are returned to the Government, and it’s not surprising.

“I pay the CITB Levy, which ends up being like a secondary tax. It’s complicated and difficult to ad-minister, particularly for smaller companies,  and it is these smaller companies that require the most help with recruitment and apprentices.

“Reform and help in these areas would be most welcome. We need to make it easy for youngsters to get apprenticeships and for us to take them on.” He added: “The Government goes on about building 300,000 houses a year to keep up with demand but with fewer than 70,000 bricklayers in this country each one has got to build four houses each year. It is just not going to happen.

“I am pleased the Government has put bricklaying on the shortage occupation list because foreign workers will come back into the country and help with the situation  we’ve got.”

Ian is so passionate about his trade that staff from his house-building and property developer company  are starring in  new BBC Three series Brickies, showing the banter, fallouts and friendships while building houses. He added: “Some of the junior staff that work for me can earn £1,000 a week. The more senior £2,500 a week.

“But since the Nineties we have had people like Tony Blair saying that the route to everything is by going to university, so you were made to believe that if you hadn’t gone to university you’d already failed. That is not the case at all, it’s  rubbish.

“A building site is a fantastic place to work but you won’t catch many teachers encouraging students to go into bricklaying instead of spending three years at university. Obviously university is right for a lot of people, and we need youngsters going to uni, but they need to be told that there are other avenues too. And that is where apprenticeships come in.”

In a 2018 YouGov survey statistics showed that just 11 per cent of 15 to 18-year-olds are likely to be encouraged towards an apprenticeship rather than further education at a uni. And 73 per cent of students claimed  the most likely recommendation made to them by their school or college would be to take a university route.

Yet those who do go on apprenticeship schemes have a good chance of a reliable future. One study found that  85 per cent of apprentices stay in employment, and 64 per cent of these continue working with the same employer.

In Leeds,  bricklayer Stuart Nicklin has struggled to recruit apprentices. One job advert led to just three applicants.

Stuart, 52, said: “Instead of going to uni and coming out with debt they could be laying bricks, cutting wood, learning a craft on the job and earning good money. 

“The academic pipeline teachers are trying to push the youth of today down is not for every child.

“I understand the Government recruiting from abroad but I have found there’s often a language barrier and we don’t know what type of training they have. Then you have the fear that homes  that we desperately need built  are not being built as well as they were.”