February 19, 2016

The Premier Group wins award with bespoke software solution

The Swansea-based construction arm of The Premier Group, a national specialist in high-spec construction and maintenance work, has been announced as an award winner at the 2015 CBRE & Shell UK supplier of the year awards.   The innovation award was presented to the company for its Premas1s software platform.

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25% increase in UK social housing completions ahead of AHP deadline

In 2014-15, housing association new build completions were 25% higher than in the previous year, driven by higher workloads before the deadline to complete the final units under the 2011-2015 Affordable Homes Programme (AHP). In 2015-16, the number of HA completions is expected to rise by around 2% and thereafter

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BILFINGER GVA APPOINTS NEW CHIEF EXECUTIVE

Bilfinger GVA, one of the UK’s largest commercial property advisers, part of Bilfinger SE, the global service and engineering group, announces the appointment today of Gerry Hughes as its new Chief Executive. Based at the Company’s UK headquarters in London, Mr Hughes will now lead the Bilfinger GVA business into

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Arbor Forest Products strengthens sales team

Arbor Forest Products (AFP) has strengthened its presence in the Midlands and East Anglia regions after appointing experienced softwood specialist Antony Considine as its new sales representative. The appointment signals AFP’s intentions to build on its recent growth and success, and firm up its reputation as the leading timber supplier

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Diversity is the key to success in the housing industry

Diversity in the housing market is the only way to solve the UK’s housing issues, according to a report published today which brings together insights into the future of Britain’s housing market. The Homes of the Future report, published by Origin, a British manufacturer of bi-fold doors and windows, highlights

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Company fined for failure to comply with improvement notices

A London based company who fabricate structural steel products has been fined for failure to maintain compliance with the law following prior HSE enforcement action. Westminster Magistrates’ Court heard how William Fry Fabrications Limited failed to thoroughly examine two cranes used by the company, despite receiving both Improvement and Prohibition

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Crossrail health and safety director to join Thames Tideway

Steve Hails, health and safety director for Crossrail, is set to leave his post at Europe’s largest construction project to join Tideway. Steve joined Crossrail in early 2012 as health and safety director. He introduced and guided Crossrail through the development of the Health and Safety Performance Index (HSPI), developed

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Hewden lodges £2.5m JCB skid steer order

Hire firm Hewden has placed an order for 50 JCB skid steer and compact tracked loaders in a deal worth £2.5m. The order, placed through dealer Gunn JCB, is for the JCB 155 and 205T tracked models, as well as a wide range of attachments, including augers, pallet forks, shovels,

Read More »

Surge of buy-to-let investors pushes up home prices

Our latest UK Residential Market Survey has seen a rise in new instructions in January, which, although modest, is very welcome. However, with buy-to-let investors rushing to get into the market ahead of the stamp duty hike, the near-term pressure on prices is intensifying despite a higher level of supply.

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Latest Issue
Issue 323 : Dec 2024

February 19, 2016

The Premier Group wins award with bespoke software solution

The Swansea-based construction arm of The Premier Group, a national specialist in high-spec construction and maintenance work, has been announced as an award winner at the 2015 CBRE & Shell UK supplier of the year awards.   The innovation award was presented to the company for its Premas1s software platform. The software was recognised for its technological advancements, enabling improved management, efficiency and best value.   It was recognised that the innovative use of IT would not only be a solution to streamline parts of its business operations, but it also gives The Premier Group’s customers an unrivalled management, reporting and budgeting information system. This enables them to have up to the minute property and equipment information via web based access.   Benefits of The Premier Group’s award winning Premas1s software include real time information for clients and company; integration to clients system, one-point log in/access; site by site information, site data and photos; mobile applications; HSEQ audits; client handover reports; link to clients’ management systems; client defect projection for future budgeting; and client defect analysis.   One of the major applications of Premas1s is centred around it mobile applications, designed to capture, collate and manage information relating to a specific project and integrate with an android App accessible on any portable tablet. Stored in the cloud, this gives the user access to a comprehensive electronic resource planning system, which also incorporates photographic evidence-based usability.   The Premier Group initially rolled out the bespoke system to all staff involved in a UK-wide project it is working on for Esso, which involves re-branding and refurbishing all the company’s CORS & Alliance Petrol Stations nationwide.   The system ultimately replaces a compressive but time-consuming and inefficient system of databases and spreadsheets The Premier Group previously used.   Frustrated by these antiquated systems, The Premier Group initially experimented with off-the-shelf products before commissioning BSS, a software development specialist acquired by SA1 Solutions in 2014, to build a bespoke system designed specifically for its unique needs.   Steve Evans, managing director of the construction arm of The Premier Group, said:   “We are extremely pleased to have won an innovation award for our Premas1s software system. Premas1s has assisted us in gaining more work and developing our relationship with clients.   “We had been using a dated and time-consuming system for many years and knew there must be a better alternative. There was a lot of repetitive work in the beginning to get the software exactly as we wanted it and to make sure it could be integrated with any handheld device. SA1 Solutions were very efficient in developing the system to our specifications and as a result, has created an award winning system.”   The Premier Group partnered with SA1 Solutions, a South Wales-based IT and communication company, to develop the bespoke software platform designed specifically to manage the challenges of the construction industry.   Simon Ahearne, managing director of SA1 Solutions, added:   “Being recognised as a company that can develop award winning software in such a specialised sector is something myself and the team are really proud of. There is so much scope with this platform and the app that has been developed with it. It integrates every element of a project in a seamless manner and can also be adjusted for different uses.   “It is perfect for large, specific projects with great repetition across many sites. It can also be adapted to cover maintenance contracts where visual evidence can be used to back-up quotes and work done in relation to faults or dilapidation on properties in a client’s portfolio.”

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25% increase in UK social housing completions ahead of AHP deadline

In 2014-15, housing association new build completions were 25% higher than in the previous year, driven by higher workloads before the deadline to complete the final units under the 2011-2015 Affordable Homes Programme (AHP). In 2015-16, the number of HA completions is expected to rise by around 2% and thereafter expected to remain relatively flat until 2019. Looking further ahead, the sector is forecasting around 170,000 homes to be built by housing associations across the UK by 2020. In 2015, total UK housing association stock increased to almost 2.9m units, with increases in all types of housing. Around 75% of market stock owned or managed by housing associations is general needs housing, which is primarily social rental accommodation. Though the housing association sector is diverse, with over 1,700 UK associations varying in size from under 10 homes to more than 50,000, over 95% of homes are managed by the top 400 housing associations. Sanctuary H.A is still the largest housing association in England followed by London and Quadrant, which increased its stock by 1,600 units last year, and Circle. There is currently a period of unprecedented change in the sector, with changes to the welfare system and a greater use of the Affordable Rents Model representing new challenges. In addition, the policies of the government to increase the supply of affordable housing are now firmly focused on home ownership rather than affordable housing for rent. A number of housing associations are considering building more private rented housing – known as ‘build to rent’ – to fund development. Indeed, some major housing associations have now dropped affordable and social rent from their development plans, in a response to government cuts and changes outlined in the 2015 Budget. Housing associations face significant new risks – not least the introduction of the Affordable Rent investment model which is expected to have a considerable effect on income streams. The Government acknowledged a number of challenges to the housing association sector in the 2015 Budget, including a decision to impose a 1% annual rent reduction in the social rented sector for 4 years from April 2016, which will directly reduce social landlords’ rental income and welfare payments made to tenants. Further reforms to the social housing sector are also expected under the Government’s Housing and Planning Bill 2015, which had its second reading in the Commons on 2nd November 2015. The Bill aims to provide legislation for the creation of more affordable homes, with a focus on ‘starter homes’ and ‘custom or self-built’ homes, for increased home ownership. “The Affordable Rent model is one of the most far reaching changes to affect the social housing sector. It has absorbed large amounts of the housing association sector’s financial capacity, and as a result many housing associations have been forced to take on increasing amounts of borrowing and risk” said Andrew Hartley, Director of AMA Research. “This is likely to continue with the majority of all homes allocated funding under the AHP 2015-18 being for affordable rent.” Going forward, prospects for the housing association sector in the short-term remain challenging. While it was announced in the 2015 Spending Review that the annual public housing budget would be doubled to £2bn a year in 2018-19 and 2019-20, the government’s £6.9bn housing investment plan focuses almost entirely on home ownership, with little reference to social or affordable housing for rent. The Government’s focus on starter homes is likely to be led by private sector developers exempted from Section 106 obligations, rather than building by councils or housing associations. The limited grant funding under the AHP, driven by the emphasis by the Government on the Affordable Rent investment model, will also severely affect housing association building activity, and in addition, revenue streams are likely to be sharply reduced by welfare changes and housing associations will find their capacity to borrow or secure finance from capital markets will continue to be constrained. The ‘Housing Association Market Report – UK 2016-2020 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services with over 25 years’ experience within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.

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BILFINGER GVA APPOINTS NEW CHIEF EXECUTIVE

Bilfinger GVA, one of the UK’s largest commercial property advisers, part of Bilfinger SE, the global service and engineering group, announces the appointment today of Gerry Hughes as its new Chief Executive. Based at the Company’s UK headquarters in London, Mr Hughes will now lead the Bilfinger GVA business into the next phase of its on-going business strategy. Currently in the top five UK commercial real estate advisors, the Company is delivering on its vision to be Europe’s leading professional consultancy and management services group in the real estate sector. It will continue to develop its full suite of services to public and private sector clients through its unrivalled UK regional network of offices. Mr Hughes has worked at the Company since 1992 in a number of leadership roles, most recently as National Head of the business’ Planning, Development and Regeneration team. He also sits on the International Board of Bilfinger Real Estate and will continue to do so. Mr Hughes has extensive expertise in advising on setting strategy for and enabling the delivery of complex development and regeneration projects at all scales. In particular, he has significant experience in establishing public/private joint venture delivery structures and funding mechanisms. Over the past six years in London, Mr Hughes has successfully helped lead Bilfinger GVA to a position where the Company is currently advising on some of the most significant projects in the Capital. This is exemplified by the launch in the last month of the £2 billion Haringey Development Vehicle and the Winstanley Estate Renewal project alongside Clapham Junction. Mr Hughes is a Member of the Royal Town Planning Institute. He holds a Master of Science degree in Town & Country Planning from Queen’s University, Belfast. Dr Joachim Ott, Executive President of Bilfinger Real Estate commented: “We are delighted to appoint Gerry Hughes as Chief Executive of Bilfinger GVA at a time when we see many opportunities across the UK and Europe to accelerate the growth and closer integration of our real estate business. We are especially pleased to be able to make an internal appointment in line with the succession planning process that had already been put in place. I am very confident that Gerry’s proven track record at Bilfinger GVA since 1992, the versatility of his market knowledge, the strength of his established network, and his expertise in advising on and coordinating complex development projects will prove invaluable in leading our UK business. We are confident that his successful leadership abilities will deliver the continued growth of our business in the UK and internationally.” Gerry Hughes, Chief Executive of Bilfinger GVA said: “It is an honour to be asked to lead Bilfinger GVA as we enter the next phase of our business strategy and further build on our recent successes. The market potential for Bilfinger GVA in the UK and Europe is huge and underpinned by our unrivalled real estate consultancy pedigree. The team has built an enviable reputation as leaders in many aspects of the real estate market in the UK and our pipeline of opportunities has never been stronger. Bilfinger GVA is now taking that success into Europe and beyond and we expect that the wider corporate activity at Bilfinger SE will present us with even greater opportunities. I look forward to working even more closely with all my colleagues to fulfil our full potential as a business.”

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Arbor Forest Products strengthens sales team

Arbor Forest Products (AFP) has strengthened its presence in the Midlands and East Anglia regions after appointing experienced softwood specialist Antony Considine as its new sales representative. The appointment signals AFP’s intentions to build on its recent growth and success, and firm up its reputation as the leading timber supplier in all areas of the UK. Mr Considine, 42, brings 12 years of timber trade experience to the team, and a strong track record of selling prepared softwood, softwood skirting, architraves and MDF moulding. Mr Considine said: “I am looking forward to working for a company that I have always admired from afar, and having seen the investment and stock on the ground it is clear why customers choose AFP over others. I would like to think that I will bring in good business for AFP in an area of the country that I haven’t worked in before – a fresh pair of eyes can be a great thing.” National sales manager Matthew Dack added: “Mr Considine has the ideal blend of experience, expertise, energy and enthusiasm for this role. We are very excited about working with him and we are certain he will flourish in the role of Midlands and East Anglia sales representative for Arbor Forest Products.”

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Diversity is the key to success in the housing industry

Diversity in the housing market is the only way to solve the UK’s housing issues, according to a report published today which brings together insights into the future of Britain’s housing market. The Homes of the Future report, published by Origin, a British manufacturer of bi-fold doors and windows, highlights a need for a multi solutions approach if the government is to meet its housing targets. It brings together discussions from a roundtable with some of the nation’s industry thinkers, house builders and developers. A fresh approach to the rules on building on Green Belt land, the shift towards open plan living, and a need to invest in modern methods of construction while encouraging fresh blood into the construction industry, are issues covered within the report. Barratt Developments, Grosvenor, URBED, the Home Builders Federation and Solidspace, as well as futurist Dr Patrick Dixon and Prof. Christine Whitehead from the London School of Economics were involved in the report, which also identifies a need to update the UK’s ‘outdated’ home valuation process, with a greater focus on sustainable mortgages. Andrew Halsall, managing director at Origin, said: “More diversity in housing was a pivotal conclusion from the roundtable, which aimed to identify the key changes that need to be made if the UK housing industry is to meet the demands of homeowners, while ensuring British manufacturers and house builders thrive in the future. “Building homes that people want to live in can only be achieved by offering variety in the housing market. A home is more than just bricks and mortar, and as a country, we have a great emotional attachment to our homes. We want them to be as individual as we are, while also being a functional space for us and our families to live.” The report determines how encouraging heterogeneity will benefit both the industry and house buyers in the future. By supporting smaller house builders and encouraging a diverse market, only then will the government meet the demand of first time buyers as it aims to build 200,000 new homes by 2020. To view the full Homes of the Future report, please visit this link.

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Company fined for failure to comply with improvement notices

A London based company who fabricate structural steel products has been fined for failure to maintain compliance with the law following prior HSE enforcement action. Westminster Magistrates’ Court heard how William Fry Fabrications Limited failed to thoroughly examine two cranes used by the company, despite receiving both Improvement and Prohibition Notices on this issue for its cranes in 2011. An investigation by the Health and Safety Executive (HSE) found that between 2012 and 2015 the cranes had not been thoroughly examined at least every 12 months despite an absolute legal duty to do so. William Fry Fabrications Limited, of Neasden Lane, London, pleaded guilty to breaching Regulation 9(3)(a) of the Lifting Operations and Lifting Equipment Regulations 1998, and was fined £13,333 and ordered to pay full costs of £2,527.

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Crossrail health and safety director to join Thames Tideway

Steve Hails, health and safety director for Crossrail, is set to leave his post at Europe’s largest construction project to join Tideway. Steve joined Crossrail in early 2012 as health and safety director. He introduced and guided Crossrail through the development of the Health and Safety Performance Index (HSPI), developed the Frontline Leadership Programme and has been a prominent champion for Crossrail’s Target Zero aspirations and health, safety and wellbeing achievements. Steve has led a number of health and safety programmes including ‘Stepping Up Week’, the health and safety survey, “Have Your Say”, and has provided guidance and advice to the Health and Safety Committee. He will join Crossrail ‘s former programme director Andy Mitchell, who was appointed CEO of Tideway in 2014. Tideway are upgrading London’s sewerage system to cope with demands of the city. Construction work for a new 25 kilometre interception, storage and transfer tunnel running up to 65 metres below the river will start in 2016. A Crossrail spokesperson said: “Steve Hails, Crossrail Director of Health and Safety, has accepted a new role as Director of Health, Safety and Wellbeing with Tideway. The process to recruit Steve’s replacement is underway. Steve will join Tideway later in 2016.”

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World’s biggest offshore wind farm to add £4.2 billion to energy bills

Hornsea Project One wind farm will see 174 turbines – each taller than the Gherkin – built 75 miles off the coast of Grimsby, spanning an area five times the size of Hull. The world’s biggest offshore wind farm is to be built 75 miles off the coast of Grimsby, at an estimated cost to energy bill-payers of at least £4.2 billion. The giant Hornsea Project One wind farm will consist of 174 turbines, each 623ft tall – higher than the Gherkin building in London – and will span an area more than five times the size of Hull. Developer Dong Energy, which is majority-owned by the Danish state, said it had taken a final decision to proceed with the 1.2 gigawatt project that would be capable of powering one million homes and create 2,000 jobs during construction. First electricity from the project is expected to be generated in 2019 and the wind farm should be fully operational by 2020. The wind farm was handed a subsidy contract by former energy secretary Ed Davey in 2014 that will see it paid four times the current market price of power for every unit of electricity it generates for 15 years. The National Audit Office was highly critical of the way in which the contracts were awarded without competition, concluding ministers had paid too much as a result. It estimated that the Hornsea One project would require a total of £4.2 billion in subsidies, an average of about £280 million per year. Consumers will be on the hook to pay subsidies to make up the difference between the market price of power – currently about £35 per megawatt-hour – and a guaranteed price, of £140/MWh. These will be funded by households and businesses through green levies on their energy bills. The market price of power has fallen significantly since the NAO made its estimates, suggesting the true cost may be even higher. Less than a year after the contract for Hornsea was awarded, other proposed wind farms were forced to compete for subsidies, resulting in much lower prices. The cheapest came in at less than £115/MWh, fuelling concerns that the Hornsea contract and other earlier deals may have been significantly too generous. Dong Energy declined to reveal the total cost of construction of the project, while the Department of Energy and Climate Change declined to provide an estimate of its impact on a household energy bill. Amber Rudd, the energy secretary, announced last year that the Government would make funding available for up to another 10 gigawatts of offshore wind farm capacity to be built in the 2020s, subject to cost reduction conditions. These conditions have not been disclosed but Ms Rudd has vowed there will be “no more blank cheques” for offshore wind. Welcoming the construction of Hornsea, Ms Rudd, said: “Thanks to Government support the UK is the world leader in offshore wind energy and this success story is going from strength to strength. “Dong Energy’s investment shows that we are open for business and is a vote of confidence in the UK and in our plan to tackle the legacy of under-investment and build an energy infrastructure fit for the 21st century. “This project means secure, clean energy for the country, jobs and financial security for working people and their families, and more skills and growth boosting the Northern Powerhouse.” Brent Cheshire, Dong Energy’s UK country chairman, said: “Hornsea Project One is a world-leading infrastructure project being built right here in the UK. It is ground-breaking and innovative, powering more homes than any offshore wind farm currently in operation. “We are making a major financial investment to construct this giant wind farm and this underlines our commitment to the UK market. Hornsea Project One will support the supply chain and help create local jobs. “To have the world’s biggest ever offshore wind farm located off the Yorkshire coast is hugely significant, and highlights the vital role offshore wind will play in the UK’s need for new low-carbon energy.”

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Hewden lodges £2.5m JCB skid steer order

Hire firm Hewden has placed an order for 50 JCB skid steer and compact tracked loaders in a deal worth £2.5m. The order, placed through dealer Gunn JCB, is for the JCB 155 and 205T tracked models, as well as a wide range of attachments, including augers, pallet forks, shovels, trencher, waste grapple, patch planner, sweeper collector, brush cutter, landscape power rake and breakers. A key factor in the purchasing decision, Hewden said, was the Power Boom design of JCB’s skid steer range. This enables operators to enter the cab of the machine through a large side door rather than climbing over potentially dangerous attachments at the front. Hewden CEO Adrian Murphy said: “This is the latest in a significant round of investments for Hewden. We believe in having the latest and newest technology to meet our clients’ exacting demands.  We were impressed with JCB’s design of its skid steer and compact tracked loader range and the health and safety benefits it offers. Having a side-door entry point is just common sense and sets the standard for the industry. Beyond that is the versatility of the equipment:  it enables our hire customers to deploy the equipment in a range of challenging environments. This, together with our recent investment in our crane and lifting fleet, shows we are at the forefront of providing the latest innovative machinery for customers.” Pictured below are, left to right: Gunn JCB director John Dolphin, Hewden product manager Alex Gadd, Hewden marketing director Kumar Bhamidipati, and JCB UK & Ireland sales director Dan Thompstone.          

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Surge of buy-to-let investors pushes up home prices

Our latest UK Residential Market Survey has seen a rise in new instructions in January, which, although modest, is very welcome. However, with buy-to-let investors rushing to get into the market ahead of the stamp duty hike, the near-term pressure on prices is intensifying despite a higher level of supply. How the tax changes planned for the buy-to-let sector over the next few years plays out remains to be seen, but there are concerns raised in the survey that existing landlords will look to either gradually scale back on their portfolios or exit the market altogether as the more penal regime begins to bite. Against this backdrop, it is perhaps not surprising that our key indicators point to further rent — as well as house price — increases.   Summary 74% of respondents expect there to be an increase in buy-to-let purchase. Supply picks up across UK — most notably in London where the increase has been significant. Housing market activity on the increase in January as demand and number of sales rise. House prices continue to rise across the UK. Demand still strong New buyer enquiries rose for the tenth successive month in January, with the pace of growth in enquiries accelerating for a second consecutive report. Feedback to the survey continues to suggest that the recent increase in demand is due to a rush of buy-to-let investors looking to buy before the 3% stamp duty surcharge comes into effect in April. Critically, 74% of respondents expect there to be an increase of purchases by buy-to-let investors prior to the changes. As activity in the housing market gathers pace overall, agreed sales have risen over the month at the fastest pace since April 2014. The picture across the UK is mixed but most areas have seen a rise in sales since the start of the year and further increases are expected. Housing stock on the up Supply has also gathered pace in the past two months but stock remains low with 46 properties per branch from 44.5, which is still 21% down compared to a year ago). Interestingly, the increase was largely concentrated in London where a significant lift in properties coming to the market was recorded in January (a net balance of +58% more respondents noted an increase). Elsewhere, sales instructions across the UK were much flatter. Even with an improvement in supply, the rush to acquire buy-to-let property is pushing prices up, with 49% more surveyors reporting prices to have risen in January (typically our indicator has a six-month lead over ONS house price inflation). Looking ahead, house prices are projected to rise further over the next twelve months, with 72% more contributors expecting prices to increase rather than fall. Rental supply still weak In the lettings market, tenant demand increased once more, with all areas of the UK seeing a rise in interest from prospective tenants during the three months to January; at the same time, landlord instructions were broadly flat. This extends an uninterrupted run in which supply has failed to keep pace with demand stretching back to 2009. As a result, expectations point to continued rental growth in all parts of the UK both at twelve month and five year time horizons.

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