The UK construction industry should beware insolvencies as demand weakens and margins are squeezed, warns UK consultant Turner & Townsend. Its latest market analysis points to falling demand, rising input costs and lower margins, and notes that the number of construction insolvencies far outstrips those in retail. The confusion over
Over 200 social homes in Manchester have received refurbishments from one of the largest privately-owned construction companies in the UK, Wates. A total of 62 previously vacant properties were fully refurbished with a further 151 properties receiving facelift works. The revamped homes in Ben Street in Clayton have been delivered
Aggregate Industries’ coloured asphalt solution was the choice of Nottinghamshire’s new £5 million Sherwood Forest visitor centre. The project was developed by an RSPB-led consortium and Nottinghamshire County Council and it includes flagship facilities such as a shop, a café with an outside terrace, an amphitheatre as well as a
Planning consent for the design of a new high quality residential scheme in the London Borough of Tower Hamlets has been secured by FBM Architects. The new development for Gateway Housing Association will provide 32 homes across the site located near Medway Conservation Area in Bow. FBM Architects’ carefully thought
A study undertaken by the team at www.MyJobQuote.co.uk found that nearly one third of British homeowners are not prepared for household emergencies as they don’t have a ‘rainy day fund’. 2,561 people over the age of 18 disclosed that they owned their own home, and have lived in it for at least
Northamptonshire will see the construction of two residential schemes that will bring around 8,500 homes, as well as schools, leisure and commercial space. After securing a £70 million loan from Homes England under its £4.5 billion Home Building Fund, the schemes will move forward. “I am delighted to hear shovels
An analysis conducted by MediaVision of property brand searches across more than 200 residential, commercial and portal/online companies revealed a market predominantly down year on year with pockets of stellar performance from some. Of the top 10 brands with the highest monthly search volume overall, only four saw a positive uplift in brand demand YoY. Of the top 50 overall, more than half saw a decline in brand demand over the last year, which indicates just
A vacant land at South Humber Bank Power Station will see the arrival of a new multi-million pound energy centre. Set to create around 50 new jobs, the £300 million facility would generate 49.9MW of electrical power, which is the equivalent to supporting around 500,000 homes. The planning application for
The leading London timber specialist Fulham Timber has been recruited by independent merchant buying group H&B to its ranks. “We are very excited about the opportunities that H&B membership will bring to Fulham Timber,” said Fulham Timber director Will Dobbs. “We are looking to continue the company’s growth trajectory and
The new £98 million Heatherwood Hospital in Ascot has officially received green light and construction work is on its way. The project leader is Kier, aiming to replace the ageing Heatherwood Hospital with a new state of the art facility, located in woodland behind the current site. “We are delighted that
The UK construction industry should beware insolvencies as demand weakens and margins are squeezed, warns UK consultant Turner & Townsend. Its latest market analysis points to falling demand, rising input costs and lower margins, and notes that the number of construction insolvencies far outstrips those in retail. The confusion over Brexit keeps persisting and contractors expect tender prices to increase 2.9% in 2019, outstripped by increasing materials costs of 5.3% and labour costs rising 4.5%. Only 28.4% of contractors expect the market to improve, against 42.1% prior to the Brexit vote in June 2016. According to official data, construction witnessed the highest insolvency rate of any UK economic sector, with 2,924 insolvencies recorded in the 12 months to the end of September 2018. This figure is 28.8% higher than the UK’s struggling retail sector. Turner & Townsend thinks that the underlying cause is weakening demand in construction. Despite a small 3.4% rise on the previous quarter, new orders in Q3 2018 were down almost a third (30.8%) on the high levels seen in 2017. As a result, Turner & Townsend’s latest UK market intelligence report finds that half of contractors (50.5%) surveyed were experiencing lukewarm tendering conditions, reporting increased competition and moderate price growth. The trends are hurting profit margins. The analysis shows median margins for tier one contractors standing at 3% and 5% for tier two contractors. Since the start of 2016, median tier one margins have shrunk by a quarter and tier two margins by half, leading Turner & Townsend to warn of a heightened risk of insolvency. “So much rests on the Brexit withdrawal agreement and there remain risks of further decreases in demand, coupled with increases in the costs of materials and labour from the continent and elsewhere. Contractors’ already-thin margins could clearly come under further pressure, ” said Paul Connolly, UK managing director of cost management. “It’s essential for clients to be proactive about these risks – monitoring for warning signs, undertaking wide-ranging due diligence during procurement, and using project controls to pre-empt and correct problems at an early stage. It’s about checking and challenging the supply chain, but also collaborating – understand suppliers’ pressures and concerns, as well as holding them to account,” he added. Turner & Townsend’s report outlines the steps clients should take in terms of watching for warning signs, due diligence, pre-emption of problems, and creating a resilient client-supplier dynamic.
Over 200 social homes in Manchester have received refurbishments from one of the largest privately-owned construction companies in the UK, Wates. A total of 62 previously vacant properties were fully refurbished with a further 151 properties receiving facelift works. The revamped homes in Ben Street in Clayton have been delivered by Wates Living Space four weeks ahead of schedule. The refurbishments include re-roofing, energy efficiency upgrades, fully-fitted kitchens and bathrooms, flooring and carpeting as well as the installation of new heating systems. The facade works involved replacing all existing windows and doors with modern UPVC, improving guttering and cleaning brickwork plus the refurbishment of communal alley space and external walling. “The work delivered by the Wates Living Space team at Ben Street is truly transformative. To take homes that have laid empty for 20 years and bring them up to this standard of quality is a task of great care and expertise and it is truly heartening to see the difference that this has made to residents,” said David Morgan, Managing Director of Wates Living Space. “Our work at Ben Street was above all things about the community. The project team should rightly be very proud of the ways in which they have engaged with local residents, community groups and neighbouring schools to ensure the positive legacy of this important work becomes a catalyst for lasting community spirit for generations to come,” he added. Delivered on behalf of Manchester City Council, the refurbishments brought to life the 200 properties that are now up to decent home standards. “First and foremost, I would like to welcome the new east Manchester tenants in to their new homes. These are some of the luckiest residents in the city as the first to access the refurbished housing at the Ben Street regeneration area. Wates has done a remarkable job turning these properties into high-quality family homes,” commented Cllr Suzanne Richards, Manchester City Council’s executive member for housing and regeneration.
Aggregate Industries’ coloured asphalt solution was the choice of Nottinghamshire’s new £5 million Sherwood Forest visitor centre. The project was developed by an RSPB-led consortium and Nottinghamshire County Council and it includes flagship facilities such as a shop, a café with an outside terrace, an amphitheatre as well as a play area for children. The Edwinstowe centre, which opened at the end of August 2018, provides information on the area’s rich wildlife and woodland as well information on the Robin Hood legend. In order to complement the resin bond golden gravel used on the rest of the site, contractors Woodhead Construction and RN Surfacing were required to source asphalt. They selected Aggregate Industries’ SuperColour Ultra. “Due to the high profile nature of this project, it was vital for us to work with a supplier offering innovative asphalt solutions, with extensive colour and performance capabilities. I’d like to thank Aggregate Industries for delivering a first class service throughout – by providing us with bespoke samples of their natural coloured asphalts, we were able to practically test out and decide on the best possible solution to help us meet the client’s unique aesthetic brief,” explained Amy Stamford, Quantity Surveyor at Woodhead Group. The Aggregate Industries solution is a range of distinctly coloured asphalts, which uses a translucent penetration grade, resinous hydrocarbon binder. The special binder is readily pigmented and provides a wide range of asphalt colours. Overall, Aggregate Industries supplied 60 tonnes of SuperColour Ultra in natural colour. “As an area of outstanding beauty, it was important for the new visitor centre at Sherwood Forest Country Park to be in keeping with the natural surroundings, including the materials used for landscaping and surfacing. With a selection of high performance asphalt materials at our disposal, including different colours and performance properties, we’re delighted our bespoke SuperColour Ultra succeeded in achieving the naturally appealing look and superior performance the client was after,” said Victoria Smith, general manager of Express Asphalt at Aggregate Industries.
Planning consent for the design of a new high quality residential scheme in the London Borough of Tower Hamlets has been secured by FBM Architects. The new development for Gateway Housing Association will provide 32 homes across the site located near Medway Conservation Area in Bow. FBM Architects’ carefully thought out design complements the urban and historic setting, whilst providing homes for contemporary living. The new scheme, its height defined by the strong parapet line, offers a continuous three-storey frontage along Norman Grove and Saxon Road, relating to the character of the Medway Conservation Area and the locally listed Saxon Lea Court. A generous space between the two buildings on the eastern part of the development ensures a soft transition in height from three to four storeys, and creating the entrance to the new apartments. The building line is set back from the street, re-establishing a typical scale for the Victorian streets in the immediate neighbourhood, while successfully solving the issue of overlooking between the existing and proposed houses on Norman Grove. Ordered fenestration patterns with tall, generous window proportions further underpin the scheme’s connection with Victorian architectural legacy. The inclusion of arched entrances to individual dwellings introduces an intimate, human-scale character that echoes this distinctive feature of the surrounding streets which contain arched openings to windows and front doors. Full height windows and doors further reinforce the connection between the external and internal spaces. A buff/brown coloured brickwork provides a contextual, robust appearance that unifies the scheme. The ground floor apartments benefit from private terraces facing onto the central courtyard. The upper floor apartments have private amenity space in the form of deep balconies that act as an extension of the adjacent rooms. The central courtyard provides landscaped open space and includes a playground while a wide green strip of front gardens on Norman Grove and Saxon Road ties Regency Court to its neighbouring context. The scheme is fully car-free, given the excellent proximity to local transport links and supportive of local policy that encourages sustainable modes of transport. Dedicated cycle storage is provided within the courtyard that is accessible to all residents.
A study undertaken by the team at www.MyJobQuote.co.uk found that nearly one third of British homeowners are not prepared for household emergencies as they don’t have a ‘rainy day fund’. 2,561 people over the age of 18 disclosed that they owned their own home, and have lived in it for at least two years. Initially, all respondents were asked if they currently had a ‘rainy day fund’ – i.e. money set aside in case of household emergencies, such as a boiler breakdown. 69% revealed that they did indeed have an emergency fund, whilst 31% said they did not. Respondents with emergency savings were then asked where they kept their savings, to which just over a quarter (27%) revealed it was cash somewhere safe, while 73% choose to keep theirs in a savings account or bank. Those with rainy day funds were asked how much they had saved up for emergencies, with the average amount found to be £1,800. Broken down further: 18% had saved between £0-£500, 15% had £500-£1,000, 26% had £1,000-£1,500, 24% had £1,500-£2,000, and 17% had over £2,000. With the average cost of replacing a boiler at £1,500, 59% of those with an emergency fund would not have enough set aside to cover the cost. Added to the 31% without any savings, this means that 72% of all respondents would not have funds the saved to replace a boiler should they encounter any issues with theirs. Following on from this, all respondents that do not have an emergency fund were then asked the reason why they did not have one, and the most common answers were found to be ‘I/we don’t have enough money to put aside’ (30%), ‘I’m/we’re not worried about having an emergency fund’ (23%), and ‘I/we have enough income coming in to cover any last-minute emergencies’ (17%). Of the participants currently without a rainy day fund, 41% said that they had previously had one, but had needed to dip into it and were yet to replace the amount. When asked what they would do in case of an emergency, 40% said they had no contingency plans, 21% said they would pay out of their current account, and 14% said they would consider a short term loan.
Northamptonshire will see the construction of two residential schemes that will bring around 8,500 homes, as well as schools, leisure and commercial space. After securing a £70 million loan from Homes England under its £4.5 billion Home Building Fund, the schemes will move forward. “I am delighted to hear shovels are already in the ground as builders set about delivering 8,500 much-needed homes so more people can realise their home-owning dream. We are making the housing market work, and Homes England’s £70 million loan will unlock the development so we can invest in the properties our country needs,” said Kit Malthouse, Minister of State for Housing. Moreover, the Kettering and Wellingborough developments will create around 3,000 jobs in the areas. Roads, utilities and other works will also be delivered to enable the delivery of homes at Kettering and at phase one of the site at Wellingborough. Speaking of Homes England’s role in delivering the sites, Sir Edward Lister, Chairman of Homes England commented: “We’re working with partners across the country to ensure land is available to build more new homes where they’re most needed. Providing infrastructure upfront is key to unlocking significant housing growth and Homes England’s investment in Kettering and Wellingborough will enable two major housing projects to be delivered after many years of delay.”
An analysis conducted by MediaVision of property brand searches across more than 200 residential, commercial and portal/online companies revealed a market predominantly down year on year with pockets of stellar performance from some. Of the top 10 brands with the highest monthly search volume overall, only four saw a positive uplift in brand demand YoY. Of the top 50 overall, more than half saw a decline in brand demand over the last year, which indicates just how tough and diverse the landscape is right now. For brands in the fiercely competitive online property sector, an increase or decrease in brand search can be attributed to several things: the effectiveness of the marketing strategy, market-related factors, the economy, changing consumer habits or the efforts of rival brands. Fortunately, positioning from a volume perspective and a robust marketing strategy can have a significant and direct impact on brand demand. Residential brand frontrunner is Dexters with an increase of 6% YoY. The London agency chain beat out Savills, Knight Frank and Foxtons, who all saw a decline in brand demand. Dexters made the news back in 2016 by shedding 20 different brands and a holding business to become a single entity that now has over 70 branches across London. The brand has since expanded even more by co-marketing homes acquiring and rebranding more businesses. With aggressive growth in the market since launching and subsequent status as one of the most valuable start-ups in the world, WeWork leads the way this year with a 58% increase in brand demand. Flexible office space has become a major disruptor in the real estate industry. With spaces offering co-working, shorter leases, stellar coffee and a greater sense of community for small teams and corporates, demand has increased around the globe in recent years. WeWork has tapped into this growing trend by appealing to an industrious audience that wants more from an office than just a desk space. Aside from its massive size – members are projected to hit 400,000 by the end of the year – the brand captures news attention with details like amped up amenities, innovative networking events, beer taps, food bars and more – all tied together by a strong marketing strategy. With an increase in brand demand at 31% YoY, industry disruptor OnTheMarket has become a major competitor to property portals Zoopla and Rightmove, who both slipped from the top spots with a decreasing brand demand. The big portals are still far ahead in terms of volume but there is no doubting OnTheMarket’s trajectory.
A vacant land at South Humber Bank Power Station will see the arrival of a new multi-million pound energy centre. Set to create around 50 new jobs, the £300 million facility would generate 49.9MW of electrical power, which is the equivalent to supporting around 500,000 homes. The planning application for the scheme has been submitted by EP UK Investments Ltd (EPUKI), which owns and operates South Humber Bank Power Station. The application was validated in December by North East Lincolnshire Council and a decision is due to be made by the end of March. “We are very pleased to announce the proposed development of an Energy Centre at the South Humber Bank Power Station and it follows the completion of our recent £53 million investment in the existing site,” said James Crankshaw, head of engineering at EPUKI. “The project is not dependent on securing a Power Purchase Agreement (PPA) or other form of secured income such as a Contract For Difference (CFD) as other EFW projects have required and, as such, EPUKI expect to progress to the construction phase soon after planning is approved,” he added. If the planning permission is granted, the South Humber Bank Energy Centre will be powered by approximately 620,000 tonnes of refuse-derived fuel annually. “The Energy Centre will provide much needed new power generation and energy recovery facilities, as well as creating permanent local jobs. We look forward to working with the planning authority and local community over the coming months,” James concluded. A subsidiary of Europe’s seventh biggest power generator EPH, EPUKI aquired in 2017 2.2GW of combined cycle gas turbine (CCGT) power stations from energy giant Centrica. Moreover, the firm put plans in place last year to boost its portfolio further by commissioning a new 420MW biomass power station at Lynemouth, Northumberland. EPUKI also has development consent to deliver up to 4.2GW of new build CCGTs in Eggborough and King’s Lynn.
The leading London timber specialist Fulham Timber has been recruited by independent merchant buying group H&B to its ranks. “We are very excited about the opportunities that H&B membership will bring to Fulham Timber,” said Fulham Timber director Will Dobbs. “We are looking to continue the company’s growth trajectory and believe that the competitive buying deals that H&B offers, and its excellent rebate system, will make a real difference to our growth potential as well as our bottom line. Margins are very tight in timber at the moment and being part of H&B’s great deals will offer us the margin protection that will allow us to grow.” A family-owned builders merchant based in Brixton and established in 1984, Fulham Timber turns over more than £12 million per annum. From a branch network in Balham, Brixton, Colliers Wood and Croydon, the company manages to supply a full range of timber and other building materials to local tradesmen, contractors, and the general public. In addition, a thriving saw mill is also being run in Colliers Wood. “We felt we had outgrown our previous buying group and were looking to take the next step. We did a lot of research and after conducting full due diligence, we chose H&B for more than just its great buying; for its flexible and accommodating style. We also believe joining H&B will streamline and improve our buying, especially since we have recently centralised our whole buying process. And we will have access to a broad portfolio of products which will allow us to expand our product offering and improve profitability across a wide range of goods,” added Will. H&B managing director Steve Parkins said that Fulham Timber fitted the profile of the perfect H&B partner – “dynamic, locally strong, and with a real commitment to growth, service, quality, and innovation”. Through its growing membership of independent builders merchants, H&B manages to reach sales of approximately £1 billion a year. It currently has over 75 merchant members, with more than 215 branches, trading in partnership with around 280 suppliers.
The new £98 million Heatherwood Hospital in Ascot has officially received green light and construction work is on its way. The project leader is Kier, aiming to replace the ageing Heatherwood Hospital with a new state of the art facility, located in woodland behind the current site. “We are delighted that work to build a new hospital can now begin on the Heatherwood site. This will be a fantastic hospital fit for the 21st century, offering state-of the-art care for our patients and a first class working environment for our staff,” said Dr Tim Ho, medical director at Frimley Health NHS Foundation Trust. Specialising in planned, non-emergency procedures such as orthopaedics, general surgery, urology, gynaecology and endoscopy, the new facility will have six operating theatres and 48 inpatient beds, plus 22 day case cubicles. Moreover, it will also include space for the Trust’s private patient unit. In addition, the facility will offer a range of outpatient and diagnostic facilities, including cardiology, radiology, lithotripsy, children’s clinic, physiotherapy and orthodontics and space for a primary care hub with GPs, community nurses and other healthcare specialists. “We are delighted that we can now deliver our vision for the Heatherwood site. The new hospital will ensure we can offer local patients the best care in the best environment and it is a key part of our strategy to remain an innovative and outstanding trust well into the future. We can’t wait to get started,” commented Frimley Health chief executive Neil Dardis. The new Heatherwood Hospital is the latest major development in Frimley Health’s £200 million capital investment programme, expected to be complete by late 2021.