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.”

Tuesday, 21 March 2023

The BBC3 Brickies is about getting more people in to the building trade and taking up an apprenticeship. Every Monday at 9pm

 


Brickies to trowel up again as BBC Three series is set to air

 

A TV series which made stars out of young bricklayers is heading back to our screens later this month.

 

BBC Three’s Brickies is back for another hot summer of building houses and chasing dreams.

 

The first episode of series two of the popular docuseries, which follows the lives and loves of young recruits at Derby-based Hodgkinson Builders, airs at 9pm on Monday, March 20, followed by Episode 2 at 9.30pm.

 

The full series is also available to view on BBC iPlayer on the same day.

 

The programme shows how life on the trowel is hard, and emotions run high on building sites full of fun, friendships and fallouts. 

 

As well as the banter, it also highlights how Hodgkinson is tackling skills shortages, by encouraging more young people into the trade - with some of the brickies revealing they can earn up to £1,200 for a 35-hour week.

 

There are some new faces, as well as old ones, and as well as a return to Stoke, the gang are working on new sites - in Mansfield, luxury houses in Leicester and on the building of a 5ft plinth to support a memorial bust of former Derby County player Reg Harrison.

 

Keeping the brickies in check is site manager Jack Smith, who is originally from Ilkeston but now lives in Giltbrook, Nottinghamshire.

 

The 32-year-old said: “There are a few new faces - new apprentices and new labourers this time around.

“The show continues to follow the lives of brickies and labourers as they earn money and pursue jobs and careers.”

 

Jack added that he was still getting used to being recognised since last series.

 

“You still get people coming up to you in the street or in Asda, saying ‘are you that person off bricklayers?’, which is nice,” he said.


The programme proved so popular, earlier this year, Brickies was up against Love Island in the British Broadcast Awards, with the team rubbing shoulders with stars including athlete Mo Farrah. Both Brickies and Love Island lost out to Welsh language programme Drych: Fi, Rhyw ac Anabledd.

 

Jack said: “Going to the awards night was nice - it makes you realise how big the show’s been. Getting nominated against Love Island, it’s like ‘all of a sudden, this is really happening’. We just keep riding the wave of it and seeing where the show goes - hopefully there will be a Series three.”

 

Ian Hodgkinson, founder and managing director of Pride Park-based Hodgkinson Builders, can’t wait to see the new episodes.

 

He said: “After the success of the first series, the second series is due to be aired in a few weeks, and it is just unbelievable.

 

“We started filming last June and finished in August.  

“To be asked to take part in a second series just proves how popular the show is. The reception received from Series one was absolutely phenomenal.”

 

He added: “Being a part of it has been so much fun, but it’s also been a fantastic platform in spreading the word about bricklaying as a career and the aspirations of our young workers.

 

“We had lots of great feedback in particular from females, who had been inspired by Jeorgia and Molly’s determination in Series one. It’s so inspiring.”

Are House Prices defying the market ?

 


Average house prices have risen by nearly £3,000 this month as the property market continues to resist predictions that the UK’s lacklustre economic performance will cause a significant slump during 2023.

Despite low growth and historically high mortgage rates, which have prompted forecasts of a 10% fall in prices this year, the average home is on the market at £365,357 in March, a rise of 0.8% on the previous month.

The increase is below the typical March rise of 1% over the past 20 years but still reflects a market “on a much more stable footing than many anticipated”, according to property website Rightmove, which published the data.

Rightmove said the market was recovering from a spike in borrowing costs at the end of last year, when policies put forward by Liz Truss and her chancellor Kwasi Kwarteng spooked international investors and sent mortgage costs soaring.

Average rates for a five-year fixed deal with a 15% deposit soared to 5.89% in October, shortly after Kwarteng’s doomed “mini-budget”, prompting estate agent Savills to predict a 10% slump in prices during 2023, amid the wider economic malaise.

The rate for the same mortgage deal has since fallen back to 4.65%.

Although this is still well above the 2.48% seen this time last year, estate agent Knight Frank said borrowing costs could fall further, as lenders compete to win business in a less buoyant market.

 

Central banks have also been tipped to think twice about raising base rates, given turmoil in the banking sector after the collapse of Silicon Valley Bank and the crisis engulfing Credit Suisse.

Inflation has also edged down to 10.1% from a peak of 11.1%, also registered in October last year, while recent economic figures have shown the UK narrowly averting a recession.

The improved economic environment drove up house prices in March, Rightmove said, compared with February, when prices were unchanged.

Underlying factors, such as the UK’s apparent inability to build new homes, are also preventing large price falls.

The rate of new housebuilding is predicted to fall in England, the Home Builders Federation (HBF) has warned, owing to a range of government policies that threaten to slow development dramatically.

 

The HBF said this would exacerbate the country’s housing crisis and make it harder than at any point in recent history to become a homeowner.

Yet property experts are still predicting an overall price fall during 2023, with mortgage rates and inflation still stubbornly high amid the broader cost of living crisis, coupled with factors specific to the housing market.

Downwards price pressure will persist as more owners come to the end of fixed-rate deals and supply picks up from the lows of the pandemic,” said Tom Bill, head of UK residential research at Knight Frank.

“We expect a 5% decline this year across the UK.”

The Rightmove data also showed discrepancies, with major variation depending on region and the price bracket of homes hitting the market.

Monday, 13 March 2023

The Spring Budget Thoughts

ITS TIME TO GO AFTER THE NIMBYS DON'T TAX LANDLORDS,

Will housing be high on  the Chancellors agenda ? will anything be done about the housing crisis ? 

The Spring Budget is upon us ..

Housing supply issues are to do with demand and not enough new homes   being built. There isn’t enough houses available to rent therefore putting the cost of renting a home up another demand problem. Anything in short supply will go up in value just like the issue we had with toilet roll’s during Covid and tomatoes at the moment.

Every house built contributes around £108,000 to the local economy.

The following is a report in the Sunday Times from David Byers Deputy Editor.

Jeremy Hunt is again thought to be considering milking landlords and second-home buyers for more tax in Wednesday's budget.

And for a chancellor in urgent search of new revenue streams, why not? After all, since George Osborne introduced the 3 per cent stamp duty surcharge for those buying additional properties in April 2016, it has been a lovely little earner.

Since 2016-17, government figures show the surcharge has raised £10.1 billion for HMRC and, in the 2021-22 tax year, a whopping 46 per cent of all stamp duty receipts came from buyers who were liable to pay the charge on top of their normal stamp duty.

The abacus looked so inviting that, in April 2021, then-chancellor Rishi Sunak decided to introduce an additional 2 per cent levy to be paid by foreign buyers, which has raised £219 million so far.

On the face of it, there is much to like about another stamp duty rise that targets those for whom most of the public hold the smallest of violins. But in evaluating the success of any policy, we need to work out whether it does anything more than simply bring in money - after all, Osborne originally claimed it was integral to his "bold plan to back families who aspire to buy their own home".

The former chancellor's thesis was that landlords were bed-blocking first-time buyers, and he hoped the extra tax would force them to stop buying in such large numbers, while existing ones would balk at a series of other tax clampdowns announced at the same time and sell up.

But, while the extra stamp duty has raised a lot of cash, 12.2 per cent of properties sold in Britain last year were still bought by an investor, according to the estate agent Hamptons - the highest proportion of sales since 2016.

English Housing Survey data suggested the number of households in the private-rented sector has been unchanged between 2020-21 and 2021-22.

A separate Hamptons analysis calls into question Osborne's philosophy - that landlords and first-time buyers compete with each other. It finds there is only a one-in-five chance that a first-time buyer will find themselves up against an investor.

Meanwhile, first-time buyers are being driven away from the market in their droves because they can't afford a home, particularly since mortgage rates skyrocketed from September onwards (thanks Kwasi) and the government's Help to Buy equity loan scheme ended.

The banking body UK Finance says there were 370,220 first-time buyers in 2022, down from 405,360 in 2021. Savills predicts the number will drop to 200,000 this year.

This all brings us back to the one inalienable fact in all of this - that the only solution to the housing crisis will be to boost our paltry supply. However, the Home Builders' Federation says that as few as 120,000 homes could be built this year

- not even half of the government's

300,000

annual target.

To build more,

Mr Hunt knows he must overhaul our rotten planning system, but that involves confronting the nimbys - aka Conservative voters.

Taxing landlords or second-homers brings nice headlines, but.

won't dent the housing crisis that is short termism.

Tuesday, 28 February 2023

The Build to Rent sector continues to be a bright spot for the UK construction sector providing opportunities for contractors.


The Build to Rent sector continues to be a bright spot for the UK construction sector providing opportunities for contractors.

With higher mortgage rates and a mixed economic outlook putting new house sales under pressure, one continuing bright spot for the construction industry is the Build to Rent (BTR) homes sector.

According to a recent report from Savills, UK Build to Rent Market Update, the supply of new rental homes is failing to keep pace with soaring demand, particularly as smaller, private buy-to-let landlords pull out of the market in the face of tighter regulations and higher interest costs.

This in turn should mean continuing healthy demand – and positive new work prospects – for larger scale, institutionally-funded BTR developments across the country.

Positive work prospects

Over £5 billion was invested in the UK BTR sector in the year up to last September and in the third quarter alone, the funds flowing into the sector were up 75 per cent on the period a year earlier. Whilst uncertainty and higher interest rates have cast doubt on all property sectors recently, Savills says BTR deals ‘continue to progress’.

The work prospects in the sector also appear positive. Before Christmas, the BTR stock stood at 76,800 completed homes with a further 49,800 homes under construction. In all, the future pipeline stands at 113,500 homes, including those in the pre-application stage.

One promising sector of the market is single family rental (SFR) homes where there are around 15,000 units in the pipeline, more than double the level of a year ago. SFR schemes are also getting bigger; the typical size of an existing development has increased to 77 homes whilst new sites under construction average 94 homes and those at the planning stage typically involve 103 homes.

Opportunities up north

The opportunities in BTR are strong in northern UK cities with large and growing student populations. Manchester, Edinburgh, Birmingham, Liverpool and Leeds all have large student numbers but face an under-supply of both purpose built student accommodation and buy-to-let housing.

Cities such as Glasgow, Belfast and Manchester have high a proportion of young graduates who want to live close to their place of work, which in turn bodes well for the demand for rental homes.

Glenigan data provides numerous examples of BTR developments across the country which reflect these trends and where work is due to start in coming months.

In Manchester, detailed plans have been submitted for a £107.7 million development at Albert Bridge House (pictured) involving some 367 BTR flats, alongside a 19-storey off