A former office building in the heart of Milton Keynes, that has been transformed into a new 200-unit residential development, has been refinanced following a £35m residential investment loan from Secure Trust Bank (STB) Real Estate Finance Located directly above Milton Keynes Central station, Station House is the result of
Around £150 billion worth of investment opportunities are set to be showcased and discussed at UKREiiF (The UK’s Real Estate Investment and Infrastructure Forum) this coming May as towns, cities, and counties across the UK look to meet investors and developers to bring forward sustainable and inclusive growth within their
Introduced in 2015, the Prologis Logistics Rent Index examines trends in net effective market rental growth1 in key logistics real estate markets in North America, Europe, Asia and Latin America. Our proprietary methodology focuses on taking rents, net of concessions, for logistics facilities. This index combines the company’s local insights
Marks & Spencer has announced a £30 million investment in its Scottish physical stores, with plans to introduce five new and expanded locations within the next 18 months. As part of this initiative, a £15 million injection is earmarked for Aberdeen Union Square, where the store’s footprint will nearly double.
In the face of a challenging year for many in the kitchen manufacturing industry, the UK’s number one furniture supplier to independent kitchen retailers, Omega invested in their future throughout 2023 with a comprehensive new development programme including, the introduction of new brand Novus, new door ranges, on trend paint
Contracts Awarded for construction projects in the UK fell £11.1bn to £69.2bn in 2023, a 14% reduction from a record £80.4bn in 2022, according to the latest analysis from construction analysts Barbour ABI. Sectors hit by the cost-of-living crisis were particularly affected with residential housebuilding down 14%, commercial developments down
Lending for commercial construction is expected to fall for the ninth year in a row, underlying how demand for office space and high street retail has declined over the period. The analysis comes from specialist property lending experts, Octane Capital, which compared lending levels across different areas of the property
Select Property, a leading developer, operator and investment specialist, has secured a £44.5 million development finance facility from Close Brothers to bring forward its first Affinity Living build-to-rent development in Birmingham. The leading UK merchant banking group has provided the facility to support Select Property as it ramps up development
A mixed-use development in Molesey, Surrey, has been rejuvenated by Odyssey Developments thanks to a seven-figure property development loan from Secure Trust Bank (STB) Real Estate Finance. The property, located within Greater London, is a commercial-residential hybrid with a florist on the ground floor and two, two-bedroom flats above. Molesey,
Derek Horrocks, chair of the National Home Decarbonisation Group, said: “This announcement is another incredibly positive step towards decarbonising the housing stock up and down the country – and one we welcome with open arms at the NHDG. “We’re pleased to see that along with the public sector, private
A former office building in the heart of Milton Keynes, that has been transformed into a new 200-unit residential development, has been refinanced following a £35m residential investment loan from Secure Trust Bank (STB) Real Estate Finance Located directly above Milton Keynes Central station, Station House is the result of a conversion of disused offices into 200 vibrant apartments across four floors. Developed by New York and Bahamas-based real estate specialist, Gold Wynn Group, the scheme is one of the latest property developments in an area predicted to see one of the highest long-term growth rates among UK cities outside London. Having topped the UK Competitive Index for 2023, the development will provide much needed housing at a time when demand is on the rise. The deal for the three-year residential investment loan, agreed at 59% loan to value (LTV), was led by Mike Feasey, Relationship Director at STB Real Estate Finance, alongside Matthew-Blaine Young, the bank’s Head of Origination. BBS Capital advised on and secured this facility for Gold Wynn, continuing its high level of activity in the refinancing space. Mike Feasey commented: “It was a pleasure to be able to deliver this transaction on behalf of Secure Trust Bank and showcase many of the bank’s strengths. Our hands on approach and team ethos, coupled with a strong working relationship with our professional partners, ensured we were able to deliver on a complex transaction in a relatively short period of time. The success of this deal shows what it truly means to be a relationship-led bank and I look forward to building on this success with Gold Wynn over the years to come.” Taking no longer than an hour to reach London from Milton Keynes Central station, the development is particularly ideal for commuters working, but not living, in the capital. Ben Friedland, President of Gold Wynn’s US & UK real estate divisions, said: “We’re delighted to have now opened the doors to Station House’s 200 stylish apartments. Milton Keynes is a thriving area on the rise and Station House is proof of this. As experts in property finance, the tailored approach provided by STB ensured that we were able to seal the deal against the clock, proving it to be one of the quickest refinances we have been involved in.” The bank’s longstanding relationship with BBS Capital, was crucial to completing the process within an allotted timeframe of three months, with it taking just six weeks from sanction to drawdown. Mark Geraghty, Director at BBS Capital said: “BBS Capital is pleased to have supported Gold Wynn on this key refinancing and build on its relationship with Secure Trust Bank. This was a notable transaction in the office-to-residential conversion space, demonstrating good liquidity in the marketplace for quality assets with robust business plans and credible sponsorship. The structured finance was arranged and executed over a short timeframe despite current market conditions, which is testament to all parties involved.” Matthew-Blaine Young added: “It was a pleasure to work alongside BBS Capital once again; this deal is the latest of several success stories we have achieved together. As a result, BBS Capital was confident of our ability to provide the necessary property investment finance and deliver on a significant deal associated with unique challenges.” Acting on behalf of the bank for this property finance loan was solicitors Shepherd & Wedderburn, while BNP Paribas was the appointed valuer for the deal. Both parties played a vital part in organising the deal, alongside Secure Trust Bank’s experienced Relationship Support Specialist, Julie Percy. Visit here to discover more about Secure Trust Bank Real Estate Finance. Building, Design & Construction Magazine | The Choice of Industry Professionals
Around £150 billion worth of investment opportunities are set to be showcased and discussed at UKREiiF (The UK’s Real Estate Investment and Infrastructure Forum) this coming May as towns, cities, and counties across the UK look to meet investors and developers to bring forward sustainable and inclusive growth within their regions. Almost 12,000 domestic and international attendees will head to Leeds in May 2024 for a three-day event where UK cities and regions will highlight opportunities and ambitions across numerous sectors, including housing, advanced manufacturing, life sciences, technology, healthcare, energy, retail and high streets, infrastructure, leisure, and hospitality, industrial, and more. This week, numerous speakers have been confirmed, including senior figures from the public sector and government, including: In addition, the private sector is set to feature heavily, with the first confirmed speakers including: With over thirty stages, the event has been described at the Glastonbury of the real estate industry as bringing a mixture of content, activity, and fringe events together to create an inspiring and creative way to make connections, tackle challenges in the sector, and create investment opportunities to drive inclusive and sustainable prosperity across the UK. Event Background Launched in 2022, the event is held over three days and brings together the public and private sectors, with all of the UK’s cities and regions represented alongside the UK Government and the numerous governmental departments. Over 700 speakers will be involved across 30 stages, with speakers already confirmed including The Rest Is Politics stars Alastair Campbell and Rory Stewart, in addition to the Shadow Minister for Climate Change, Kerry McCarthy. Mayors from numerous devolved authorities have already announced they’ll be attending, including Mayor Tracy Brabin of West Yorkshire, Mayor Oliver Coppard of South Yorkshire, and Nik Johnson of Cambridgeshire and Peterborough. Having grown from 3,500 attendees in 2022 to 7,500 in 2023, the event in 2024 is set to attract over 12,000 to Leeds. In addition to 12,000 attendees, the event is set to attract a further 3,000 people to the city to enjoy the fringe events across the city, with £20 million set to be generated for the local Leeds community. The event generated £2.25 million in social impact in 2023 for the local economy. Facilitation and Investment The event has already been lauded across the UK by many cities and regions, with Torbay Council recently confirming a major £100m investment into the seaside destination, which is set to create jobs, homes, and revitalise the leisure offering in the region, all happening directly because of the event. In addition to this, there are several other schemes totalling over £500 million of investment known to be in the pipeline across other cities following direct facilitation and introductions at the event. During UKREiiF, international and domestic investors, developers, and occupiers will be invited to meet and greet UK cities and regions to understand their requirements and see if there are any natural collaborations and partnerships that can be brought forward. High Praise The sudden emergence of UKREiiF as Europe’s fastest-growing real estate and built environment event comes with much high praise from senior figures in the industry: President of international investors Amro Partners said: “UKREiiF tells me that the UK is open to business, and as an investor, that is a fantastic message. The event brings together government ministers and officials, people from Whitehall, local authorities, investors, and developers; it’s a phenomenal representation of the real estate sector.” Alan Denby, Director of Pride in Place at Torbay Council, added: “Being at UKREiiF has enabled Torbay to have discussions with investors, developers, and occupiers, and from these discussions we’ve announced the preferred development partner to work with us on four key development sites worth over £100m to the local community, and that investment is a direct result of being involved in UKREiiF.” Alastair Campbell, Former Director of Communications for No. 10 Downing Street, said: “UKREiiF brings together all the different parts of the equation that are needed to regenerate regions and the economy successfully. And it’s changing people’s views of the industry world.” Greg Ward, Principal Regeneration Office for Economic Development at North Northamptonshire Council: “I was unsure of the opportunities UKREiiF would bring, but I decided to attend, and our council was pleasantly surprised. There were a lot of learnings to have, but the dedicated investment and development facilitation sessions were excellent, in which we had five prospects come from this, which has led to follow-up meetings in North Northamptonshire.” International Delegates Around 1,500 delegates are expected from overseas, including a trade delegation from Asia headed up by the Department for Business and Trade. European capital investors and developers will be in attendance, attracted by the strength of the UK’s market, especially in new and emerging sectors such as Agri-Tech, Life Sciences, Aerospace, EV and Data Centres. International cities and regions are also signed up, with those registering early including Illinois State, New York Economic Development Corporation, Choose Paris, Business Iceland, and the Municipality of Genoa, with many more set to announce their attendance as they look to share best practices amongst UK regions while sharing their own case studies and success stories. To find out more, visit www.ukreiif.com Building, Design & Construction Magazine | The Choice of Industry Professionals
Introduced in 2015, the Prologis Logistics Rent Index examines trends in net effective market rental growth1 in key logistics real estate markets in North America, Europe, Asia and Latin America. Our proprietary methodology focuses on taking rents, net of concessions, for logistics facilities. This index combines the company’s local insights on market pricing dynamics with data from our global portfolio. Rental rates at the regional and global levels are weighted averages based on estimates of market revenue. Global logistics real estate rent growth totalled 6% in 2023, underscoring the resilience of logistics real estate fundamentals. Nearly all markets globally recorded positive real rent growth, amid positive demand, low vacancy, and the need to evolve supply chains in response to changing consumer expectations, operational challenges and persistent disruption. Global Takeaways Data Pertinent to Europe for 2023 Eva van der Pluijm-Kok Vice President, Research & Strategy, Europe adds: “Looking ahead, Europe is likely to see a lower peak in the vacancy rate during the upcoming mini-cycle because new construction starts fell earlier than in the U.S. and other global markets. Improvement in the demand backdrop could cause rent growth to reaccelerate quickly as scarcity returns to many markets on both the Continent and in the UK.” You will find the full research here. Building, Design & Construction Magazine | The Choice of Industry Professionals
Marks & Spencer has announced a £30 million investment in its Scottish physical stores, with plans to introduce five new and expanded locations within the next 18 months. As part of this initiative, a £15 million injection is earmarked for Aberdeen Union Square, where the store’s footprint will nearly double. Representing one of the most substantial private sector investments in Aberdeen in recent years, the upgraded store will feature a market-style food hall, along with expanded clothing, home, and beauty departments. Set to open in spring 2025, this establishment will rank as the fourth-largest M&S store in Scotland. Rachel Rankine, M&S’s North East regional manager, expressed confidence in Aberdeen’s retail future, stating, “The scale of our investment is a vote of confidence in the future of retail in Aberdeen city centre, with a flagship store on the same scale as city centre stores in Birmingham and Liverpool.” In addition to the Aberdeen development, M&S will unveil a food hall in Linlithgow later this month and launch a full-line store in Dundee’s Gallagher Retail Park this summer. Furthermore, the retailer will make its debut in Largs with a new food hall scheduled to open in early 2025. This £30 million investment supplements the £32 million already invested in eleven Scottish stores over the past four years, which includes the introduction of new food halls in Paisley, Hamilton, and East Kilbride. The investment aligns with M&S’s goal to become the UK’s leading omnichannel retailer. The company aims to transition 247 existing stores into 180 higher quality, higher productivity full-line stores while also establishing over 100 food sites by the 2027/28 financial year. In addition to this current investment, M&S has inaugurated eleven new and revamped stores in Scotland over the past four years, including new food halls in Straiton (Edinburgh), Hamilton, Falkirk Central, Cumbernauld, East Kilbride, and Paisley. This also involves renewals and expansions in Glasgow Silverburn, Edinburgh Gyle, Anniesland, Glasgow West End, and Bishopbriggs. Furthermore, two convenience stores recently opened in Glasgow Battlefield and Glasgow Queen Street. Earlier in the year, fellow retailer Aldi unveiled plans to invest £56 million in its Scottish portfolio, intending to open three new stores in 2024. Building, Design & Construction Magazine | The Choice of Industry Professionals
In the face of a challenging year for many in the kitchen manufacturing industry, the UK’s number one furniture supplier to independent kitchen retailers, Omega invested in their future throughout 2023 with a comprehensive new development programme including, the introduction of new brand Novus, new door ranges, on trend paint colours and the launch of a custom panel service. Omega CEO Simon Barber said, “2023 was an exciting year for Omega with the launch of Novus, many great new product developments across our brands and a range of initiatives designed to support our retail and contracts partners. As a business we continually look to the future believing investment in product, technology and people is what drives us forward. The start of 2024 will see the completion of a £1 million project to improve our sales processes to benefit both our contracts and retail customers.” Once complete the investment will deliver an even more efficient service solution for all customers and a bespoke commercial system for contracts partners. Novus is the modern leading-edge solution in handless kitchens characterised by a clean, and sleek aesthetic, manufactured in the UK. The minimalist kitchen was designed to compete with the handless kitchen trends established by European suppliers and offer customers flexibility and choice whilst ensuring ease of installation and guaranteed delivery. Speaking about the launch Omega Retail Sales Director James Bishton says, “It’s exceeded the expectations of both our new and existing customers who are looking for a UK sourced option for contemporary kitchens. Without exception all prospective customers visiting Omega for the first time to see the brand, showroom and facility wish they’d done so sooner.” Omega have expanded on the launch phase of Novus with the introduction of Custom Size Panels across all of their brands, allowing customers to order the specific panel requirement to suit any design giving them greater flexibility, reduced waste on site and lower costs. James Bishton continues, “Novus has helped us capture new customer sales and seize market share since its launch in Summer 2023. Our new partners have also successfully engaged with our existing painted shaker kitchens, to widen their own offers aligned to core UK market trends.” Commenting on the impact of Novus on the Contracts Market Omega Contracts Sales and Operations Director Katy Snow said, “Since the launch in May 2023, Novus has generated great interest from our contract developers on both housing developments and Major Project apartment schemes, including Berkeley Eight Gardens Development the first to showcase Novus in volume. Novus differentiates our contract customers from other developers in their area which demonstrates a value-added proposition to potential home buyers. Omega’s robust supply chain, large stock holding and excellent design and manufacturing capabilities in the business has also supported several new customers from site takeovers delivering kitchens on very short lead times.” In support of their customers, in October 2022, Omega pledged that their prices would remain fixed for 16 months providing partners with much needed price stability during a time of economic uncertainty and challenges. The latest announcement sees that price freeze extended until 5th April 2024. Building, Design & Construction Magazine | The Choice of Industry Professionals
Contracts Awarded for construction projects in the UK fell £11.1bn to £69.2bn in 2023, a 14% reduction from a record £80.4bn in 2022, according to the latest analysis from construction analysts Barbour ABI. Sectors hit by the cost-of-living crisis were particularly affected with residential housebuilding down 14%, commercial developments down 15% and Hotel and Leisure falling dramatically by 29%. A lack of confidence in the market was also reflected in applications for new construction projects, which fell by 16% to under £100bn. Housing applications are now 21% down on pre-pandemic levels. Barbour Consulting Economist Kelly Forrest commented: “2023 was challenging for the UK construction sector. In addition to viability challenges from higher construction costs and borrowing rates, consumers and business confidence remained weak. 2023’s good news stories were largely confined to the public sector as the government’s flagship school and hospital building programmes finally started to build some momentum amid moderating cost inflation and mounting political pressure.” Barbour ABI found that education awards bounced back to £6.1bn in 2023, a 20% uplift compared with 2022, and a 19% increase from 2019. Meanwhile, Healthcare beat 2022 by 4% and is now 160% higher than pre-pandemic levels. Forrest continued: “Overall weakness concealed pockets of buoyant sub-sector activity. Energy was a particular bright spot as investment poured into energy from waste and energy storage facilities, along with offshore wind.” Infrastructure Infrastructure spending, including government-funded projects, remained an important crutch for the industry in 2023. Contract awards fell 22% to £15.2bn but remained 47% higher than in 2019. Energy projects were a big driver. Windfarms, battery storage facilities and large waste-to-energy contracts all helped maintain awards momentum. Meanwhile, applications remained 62% higher than pre-pandemic levels and analysis of demand side approvals, still double pre-pandemic levels, suggests infrastructure will continue to perform in 2024. Looking ahead Forrest concluded: “In early 2024 there are a few reasons to be optimistic. Interest rates are likely to have peaked and inflationary pressures have eased markedly. Entering what is very likely to be an election year there is a risk there will be a hiatus in public sector investment as key decisions are postponed. The speed and resilience of the private sector recovery will be pivotal.” Building, Design & Construction Magazine | The Choice of Industry Professionals
Lending for commercial construction is expected to fall for the ninth year in a row, underlying how demand for office space and high street retail has declined over the period. The analysis comes from specialist property lending experts, Octane Capital, which compared lending levels across different areas of the property construction industry over the past decade using data from the Bank of England. Octane then estimated where total lending would sit come the end of 2023 based on the current data available (Jan to November). The analysis shows that the average monthly amount outstanding across the commercial construction lending sector has gradually fallen from £5.11 billion in 2014 to £3.383 billion in 2022, a drop of 34%. Octane Capital estimates that 2023 will see this figure fall by a further -2.6% in 2023 to £3.30 billion, following on from an annual decline of -4.3% in 2022 and a minor reduction of -0.8% in 2021. Rental recession and challenging year for retail Last year office rentals in London were said to be in “rental recession” due to the number of empty workspaces, as the pandemic has facilitated a growing work from home and flexible working culture. Meanwhile the high street has struggled to compete with the growth of online retail for some time, while consumers are currently being squeezed by the cost of living crisis. In January the The British Retail Consortium warned that retailers are set for a “challenging” year in 2024 due to “weak consumer confidence. Overall construction lending dips for second consecutive year The analysis by Octane Capital also shows that lending across the construction sector as a whole is forecast to fall for a second consecutive year in 2023, as interest rate rises made borrowing gradually less affordable. Octane Capital estimates that the average monthly total of outstanding lending will reach £33.26 billion in 2023, marking a -7.1% drop from the year before, while in 2022 there was also a drop, at -4.0%. The second consecutive annual decline follows the Bank of England base rate hike from 0.25% to 5.25% between December 2021 and August 2023, making the cost of borrowing far more expensive for construction and development firms. Development down but domestic construction sees uplift Commercial lending for the development of buildings – which encompasses structural alterations, demolitions and rebuilding – has been on the steady decline since 2021. Octane Capital estimates that some £12.74 billion of outstanding lending will be recorded in 2023, which will again result in a drop of -7.9%, following previous yearly falls of -5.3% in 2022 and -4.3% in 2021. Lending for domestic construction – a dwelling where more than one family unit lives – is the only construction type expected to go against the grain. After dropping off by -19.8% in 2021 it recovered by 9.2% in 2022, and is estimated to climb by 1.7% in 2023, as is forecast to sit at £6.04 billion for the year. CEO of Octane Capital, Jonathan Samuels, commented: “Demand for commercial construction lending has seen a consistent decline in recent years, with the average monthly amount outstanding falling by 34% between 2014 and 2022 and expected to fall further in 2023. “While the pandemic accelerated the trend for more businesses to embrace hybrid working, it must have come as a shock to the office sector, as it’s ultimately businesses paying competitive rents that justify these construction projects. “Another factor hitting construction is the cost of financing, as it’s becoming harder for developers to make a good return on their investment given that interest rates are relatively high. “One positive is that interest rates now look to be falling again, so it could become more affordable for developers to fund projects in 2024 and beyond, which should help cultivate some growth, albeit this will likely remain subdued versus historic highs.” Data tables and sources Data tables and sources can be viewed online, here. Building, Design & Construction Magazine | The Choice of Industry Professionals
Select Property, a leading developer, operator and investment specialist, has secured a £44.5 million development finance facility from Close Brothers to bring forward its first Affinity Living build-to-rent development in Birmingham. The leading UK merchant banking group has provided the facility to support Select Property as it ramps up development of its new 266-unit property, Affinity Living Lancaster Wharf. Due to complete in Q3 2025, the build-to-rent specialist has already sold out Lancaster Wharf’s apartments to investors, securing £77 million in sales. Located just a 10-minute walk from Snow Hill Station and Colmore Row, it is Select Property’s first Affinity Living residence in Birmingham, having established a strong reputation across its four existing properties in Manchester. Its ethos focuses on providing high-quality, community-led and resident-centric homes in the heart of some of the UK’s most vibrant regional cities. In a recent survey of its 1,300 residents across its four Affinity Living properties in Manchester, 75% said they would choose to stay at Affinity Living when their tenancy came to an end, showcasing the strength of the brand’s offering. Close Brothers has supported Select Property on a number of projects over the last decade, including Affinity Living Riverside and Riverview in Manchester. Adam Price, CEO at Select Property, said: “We are very proud of the Affinity Living experience that we have created and developed in Manchester city centre. Given its success, we knew it was the right time to bring our proposition to new markets and Birmingham was the perfect place to do so given the continued growth of its young professional population. “Our new property at Lancaster Wharf will provide best-in-class rental homes in an unrivalled location with community at its heart, so we have no doubt that resident demand will mirror the demand we have seen from investors for this development. “Close Brothers has been an invaluable partner to us in this project, working quickly to provide us with the support we need to see the development through to completion.” Simon Powell, Director at Close Brothers, added: “We have worked with Select Property for many years and have forged a strong relationship with their highly experienced team, and are delighted to be supporting them on yet another fantastic scheme. Situated within an area of major regeneration, Lancaster Wharf will provide much-needed, high-quality apartments for the rental market that will complement the ongoing improvements in the wider area. “We have supported housebuilders and developers for over 40 years and look forward to continuing to do so over the coming years with experienced partners like Select Property.” Building, Design & Construction Magazine | The Choice of Industry Professionals
A mixed-use development in Molesey, Surrey, has been rejuvenated by Odyssey Developments thanks to a seven-figure property development loan from Secure Trust Bank (STB) Real Estate Finance. The property, located within Greater London, is a commercial-residential hybrid with a florist on the ground floor and two, two-bedroom flats above. Molesey, situated on the south bank of the River Thames, is just minutes from Hampton Court Palace, and takes 35 minutes to reach central London via train. The second floor of the building was recently added using STB’s loan, alongside a further two detached houses built on the remainder of property’s land. The deal was agreed thanks to STB’s approachability and thorough understanding of the real estate market. Signed under an 18-month term, the loan itself is structured as one of STB’s popular residential property development loans, used to support with the heavy refurbishment of residential development sites. STB Relationship Director, Paul Scagliosi, orchestrated the deal with Odyssey Developments, with a LTGDV of 59% and a 74% LTC, taking just six weeks to complete. John O’Neil, Director at Odyssey Developments, said: “It’s important for us at Odyssey Developments to have a trusted financial institution that understands our needs and is able to turn around the necessary requirements and funding for a project in a speedy manner. Secure Trust Bank executed this superbly. “Our new build houses which were constructed through the less desirable autumn and winter months were fully completed and sold in 26 weeks with no delay or overrun. Much of this was only achievable due to our close working relationship with STB. “Our appreciation and gratitude go out to those personnel at STB who worked so closely with us on this very successful project. We look forward to working with STB again soon, on our next housing proposal.” Paul Scagliosi, Relationship Director at STB Real Estate Finance, said: “This development has been rewarding and very fun to work on. We have come away with a great working relationship, and four high-quality homes within touching distance of London. John and the team at Odyssey are brilliant to work with, exceptionally skilled at what they do and are all-round nice people. The tailored approach and process was smooth given its complexity, and I’m glad we were able to contribute to a great, practical development.” For more information about Secure Trust Bank Real Estate Finance, please visit https://www.securetrustbank.com/business-finance/real-estate-finance Building, Design & Construction Magazine | The Choice of Industry Professionals
Derek Horrocks, chair of the National Home Decarbonisation Group, said: “This announcement is another incredibly positive step towards decarbonising the housing stock up and down the country – and one we welcome with open arms at the NHDG. “We’re pleased to see that along with the public sector, private owner-occupier and private landlords will benefit from this funding, with an extra £1.5 billion for the Boiler Upgrade Scheme, and a new energy efficiency grant providing £400m to households in England. “The extra funding for the Boiler Upgrade Scheme gives the opportunity to tie this £7,500 offering into whole-house decarbonisation proposals for householders, which alongside ECO for fabric measures should create an attractive large-scale offering. This is alongside multiple other heat transformation schemes, and a new £500m local authority retrofit scheme to support 60,000 low-income and cold homes, including those off the gas grid. “Meanwhile, we’re especially pleased to see £1.25 billion for the Social Housing Decarbonisation Fund within the funding, which will be match-funded to create £2.5 billion between 2025 and 2028. This is something we called for in the Autumn Statement and will give us that longer term to develop the area-based approach and use the economies of scale it affords. “The past five years have seen more government investment in decarbonisation than ever before. Excellent progress has been made, with nearly 50% of properties in England now having an Energy Performance Certificate (EPC) of C – up from just 14% in 2010. The government has now committed to spend £12.6 billion by 2028, a move that will genuinely make a difference to thousands. “Since our inception earlier this year, we made a concerted effort for this funding to be committed to, by writing directly to the Prime Minister, as well as making a request for this ahead of the Autumn Statement. We firmly believe that the decarbonisation of homes is about so much more than achieving net zero but rather it is also about supporting millions of people facing the impacts of the cost of living, energy, and health crises, which this announcement highlights. “This funding will provide the all-important long-term certainty for businesses within the sector too. This is again something we have spoken publicly about in recent months and called on the Prime Minister himself to assure. With more than £12 billion now committed, industry can be confident in making the investments needed for innovation and expanding the supply chain that will deliver this critical work. “As a group, we know the power we have together, with an estimation that 80% of the large-scale domestic retrofit in the UK will be carried out by our members. In 2024, we know we have a huge opportunity to work closely with the government on shaping policy through our growing partnership with DESNZ. Our working groups are established and already working towards achieving real outcomes together, and we look forward to continuing our position as a key driver for net zero – and of social change too.” To learn more about the NHDG, its aims and its members, please visit the website at: https://www.nhdg.org/ Building, Design & Construction Magazine | The Choice of Industry Professionals
