The pandemic has impacted almost every industry in one way or another, and while construction firms were allowed to continue in times when others weren’t, the period has still proven challenging. But with a recent uptick in activity and a wider return to normality on the horizon in the UK, optimism is building for the sector’s recovery.     This cautious confidence comes on the back of a significant contraction in output in the first half of 2020. Even after the government stated construction work should resume with new safety measures in place, commercial activity has been slower to bounce back due to retail store closures and uncertainty around the future of offices. At the same time, areas such as private housing have been more buoyant due to pent-up demand and government incentives such as the stamp duty holiday. So what does the road ahead look like for the construction industry overall?        Forecasts of recovery Private housing work is expected to remain strong throughout 2021 and into 2022 thanks to factors such as the rise in homeworking and homeowners reinvesting pandemic savings. Public housing output is also due a boost thanks to a backlog in cladding safety work. But these aren’t the only reasons behind the industry’s hopeful outlook. Commercial projects and infrastructure work have also displayed growth as the UK prepares to fully reopen for business on the back of a so-far successful vaccination campaign. Examples include HS2, one of the largest construction projects currently underway in Europe, and various offshore wind and nuclear works.   In fact, the surge in construction activity between February and March of this year was the largest in any month since September 2014.       Potential bumps in the road Despite the positives mentioned above, construction output is still only projected to reach pre-pandemic levels in 2022. The industry’s recovery is also somewhat reliant on a wider economic resurgence – which could still be dampened by new Covid variants and a rise in unemployment when the furlough scheme finally ends.    There is then the worry that construction firms will have to deal with a potential global shortage of goods and materials as other industries and nations lag behind. Increased import costs and timeframes linked to Brexit are also looming large for many companies.    Those in commercial sectors will also be waiting nervously to observe to what extent there is a return to office work. Onno Adriaansens, co-chair of the European Real Estate Group at global consultancy firm RSM, asks:   “If office demands get scaled back, what happens to the thousands of half-built high rises all over the world? Do we convert them to residential? Whatever the case, real estate cannot simply ‘get through’ the COVID-19 crisis without a significant evolution.” Ultimately several questions like this remain. But for the time being at least, the future looks reassuringly bright for the UK’s construction industry.

When the nationwide Covid-19 lockdown came into force in March 2020, every sector in the UK was caught off-guard, and non-more so than the construction industry. However, as the months progressed and construction was allowed to resume – albeit in a more streamlined way, the construction industry was able to if not bounce back, at least claw back some lost ground. The pandemic also revealed the need to accelerate initiatives and highlighted shortfalls within the sector. Most notably, the repatriation of migrant workers demonstrated the sector’s vulnerability to labour shortages and supply chain disruption. Supply chains The sudden imposition of lockdown measures highlighted how little stock construction sites and suppliers hold in the UK. From cement and paint shortages to timber holdups and multi use silicone sealant products such as caulk. While there have been calls to address the issue of precarious inventories, this is a difficult challenge to solve because much of the manufacturing capacity for construction materials has moved offshore, and given the ongoing complications with Brexit this will be a long-term issue. Repatriating elements of the supply chain will come at a cost and the industry need to be prepared to pay the additional expense of having local sourcing options if it wants a secure supply chain, which will of course impact the sectors overall growth. Commercial and residential projects The stripping back of project teams as a result of the pandemic revealed the potentially inefficient nature of many construction workforces. This realisation meant that rather than cutting construction jobs, it’s time to deploy them in a more efficient way, especially in large-scale commercial projects. Prior to the pandemic commercial construction centred heavily around office sector building, however, given that new figures suggest that fewer than one in five employees want to return to the office full-time, we could see a greater shift towards residential projects. As more people continue to work from home, new build sites could focus their attention on work from home set-ups as commuter villages become more popular. Duncan Brock, group director at the Chartered Institute of Procurement & Supply, said:  “The residential sector had been relatively immune to the effects of lockdowns and pandemic disruptions, but it too was beginning to show signs of weakness for the first time in over six months.” Growth forecasts In early 2021, the construction industry saw a 14.0% rise following an estimated contraction of 14.3% overall in 2020 caused by the sharp fall in the first half of last year. It’s also estimated that the output is only expected to recover to pre-Covid level in 2022. There is also a risk that one the furlough and self-employed support schemes end, there may be a sharp rise in unemployment that could potentially dampen this recovery. It’s not just potential unemployment and knock-on Covid pandemic that could affect growth, but delays in the supply chain.

Plumbers face more delayed payments than any other trade  Experts share advice for securing late payments  UK tradespeople are seeing over £1,000 of payments per year withheld by customers following a completed job.  The research, conducted by IronmongeryDirect, found that an average £1,062 is owed to tradies across the UK. A third (33%) said they were waiting for over £1,000 from customers for completed jobs, whilst nearly one in ten (7%) are owed over £3,000.  Nearly two thirds (61%) of tradespeople have had payments withheld by customers, which occurs twice per year on average. More than one in ten (12%) however, experience withheld payments more than five times a year.  Only 6% of tradespeople say that the payment issues are resolved within a week, whilst more than one in five (22%) have had to wait more than a month to be paid for a job.  Plumbers were found to be the most likely to have to deal with payment problems, experiencing withheld cash 2.6 times per year on average. Landscapers, meanwhile, experienced the fewest issues, with an annual average of only 1.2 times.  Trades most likely to have payments withheld (times per year)  Plumber: 2.6   Electrician: 2.4  Builder: 2.3  Bricklayer: 2.2  Carpenter: 1.9  Surveyor: 1.8  Joiner: 1.7  Painter & decorator: 1.6  Plasterer: 1.3  Landscaper: 1.2  Builders are owed the most, with an average of £1,375 withheld by customers, with nearly half (45%) saying they had over £1,000 of outstanding payments. Bricklayers (44%) and carpenters (40%) are experiencing similar rates of withheld cash.  Plasterers were found to be owed the least, with an average of £535 outstanding, followed by landscapers (£615).  Female tradies were found to receive payment quicker than their male counterparts, experiencing higher rates of payment within a week (8% vs 4%) and within a fortnight (34% vs 20%).  However, women were also found to be owed higher sums of money, with an average of £1,168 outstanding, compared to £972 for men.  When it comes to age, millennials (25-34 year olds) are more likely to experience withheld payments than older tradespeople, with an average of 2.5 payment issues per year, compared to 1.6 for 55–64-year-olds and 1.7 for over 65s. People in this age group were also more likely to be owed larger sums of money, with millennials owed the most at £1,258 compared to other generations.  Despite this, invoice problems were solved quicker for younger generations, with 14% of millennials waiting more than a month for payment, compared to half (50%) of 55–64-year-olds.   Alison Werner from the UK’s leading business coach for trades and construction industry, The Trades Coach, said: “Be sure to display your full terms and conditions in the original quote, as well as your website. This should include a full breakdown of costs and a clause for late payments. Regular communication will also help address any misunderstandings as they arise and will also be looked upon favourably in the rare event of legal proceedings.  “There might be a reasonable reason why a customer is late paying, so it’s important not to assume the worst and firstly find out what the issue is. Having a telephone conversation is the best place to start and then follow this up with an email and regular email reminders. If payment is still not received after several months, you should consider hiring a debt recovery company who will take a small commission to recover payment on your behalf.”  Dominick Sandford, Director and Head of Merchandising & Marketing at IronmongeryDirect, said: “Withheld payments are an annoyance that every tradesperson has to deal with at some point or another, but when significant amounts are owed by customers it can become a serious threat to your financial security.  “It’s shocking to see how much tradespeople are waiting on and how long they’re having to wait for their payment following a job. We hope our useful tips help tradies get paid quicker and without any hiccups along the way.”  For more tips on dealing with outstanding payments and your legal rights, visit: https://www.ironmongerydirect.co.uk/blog/expert-tips-for-handling-unpaid-invoices 

Thanks to many changes in society as a whole, there are very few people who still have any patience. Everyone expects everything instantly or at least quickly. This is because we don’t have to wait for many things. You can instantly stream almost any movie or song directly to your phone in a moment. This availability to get instant gratification has changed the way many industries handle business. The Traditional Way to Sell a Home Until recently most people sold their homes by using a real estate agent. When you sell your home in the traditional way you contact a real estate agent and they come out to look at your home and make suggestions for repairs and improvements that can make the house sell for a larger amount and quicker than it would if sold as-is. A realtor makes a commission of the sales amount so they will encourage you to do a lot of work for your home to increase the value before placing it on the market. Once you finish paying for all the work the realtor will have pictures of the home taken and list it on MLS. MLS the system relators use to post all homes that are for sale. Then it is a waiting game there is no way to know how long the home will sit on the market before it sells or if it will ever sell. There is also no way to know for sure how much the home will sell for and once it finally sales you still have to subtract several other fees. You will need to account for your realtor’s commissions, closing cost, all the money you spend to keep your home on the market, and all the repairs you made.  The New Way to Sell a Home There are now companies online that allow you to sell your home from the comfort of your couch. When you choose to use one of these companies, you will not have to make any repairs or improvements to your home. You simply go to the companies website and provide them with your address and they will do the rest of the work. Most of these companies will have you cash offers to buy your home within a week. These companies do their research on your home and find out what it would sell for in perfect condition. They then advise several investors that they work with the condition of your home and the possible value. These investors then compete with offers to buy your house and the company sends those offers to you. If you chose to accept an offer you can close quickly and you get one hundred percent of the selling price in your pocket. Sundae is a great example of one of these companies. When you chose them to help you sell your house they can give you a guaranteed timeline and a guaranteed amount of profit. The traditional way of selling a home does not allow for either of these to be a sure thing. This makes selling your home with companies like Sundae a great choice for someone who hates the unknown. If you enjoy a gamble maybe the traditional way is right for you but knowing you can walk away with money sooner than later is always an attractive offer. Now that you know companies like Sundae offer a new way to sell your home online, it is time for you to look into the process. You can get offers on your home without making any kind of commitment to make the sale. This will allow you to at least see what you could walk away with without sinking any more money into your home. Look into one of these companies so that you can know what your options are and maybe have your house sold faster than you thought was even possible.

Unique approach to solutions provision with unrivalled proposition from industry experts A unique firm to assist businesses and help them prosper in the ‘new normal’ with an innovative approach to property and finance-based services has launched today. ARMCo is the brainchild of Birmingham-based business founder and investor Russell Martin, and combines specialist lending, corporate support, land procurement and development, and insurance services – catering for a rapidly evolving business landscape – to benefit clients with truly holistic and tailored solutions. ARMCo is based in the heart of Birmingham’s finance district, where its HQ is the base from which the firm delivers its local, regional and national offering. It has a strong foundation: Russell formed Finance 4 Business, a specialist broker for finance transactions, 15 years ago – and used his experience, expertise and connections to form four further businesses which have grown strategically year on year, offering agile and integrated solutions to clients. With four new firms offering synergistic services added to the group, this forms the complete ARMCo offering. Jon Preston has been appointed as Chief Operating Officer at ARMCo. Jon brings a wealth of experience, having worked at a UK-based lender which underwent a £26m MBO last year with Foresight Group, a leading independent infrastructure and private equity investment manager. ARMCo founder Russell Martin explains: “We are living in uncertain times and a post-pandemic world looks very different for a lot of businesses. Overcoming challenges such as access to business finance, sourcing sector-based specialist risk and insurance solutions or navigating land procurement and development opportunities will have presented complexity before Covid, but the ‘new normal’ will be more challenging for many. “The combination of expertise at ARMCo means we can deliver bespoke solutions for our clients to help them maximise growth opportunities and give them an exceptional experience. Our adept approach ensures that even the most complex of transactions are navigated with integrity, proficiency and pace. The combination of a human approach, passion and commitment of strong leaders and highly collaborative partnerships, combined with a central services approach, presents an unrivalled proposition in the UK – particularly with Jon at the helm, leading and propelling the group,” he added. The ARMCo group comprises Finance 4 Business, Liquidity Club, Innovation 4 Business and  Walker Doble – as well as new firms Atlas Land & Planning, Midshore Partners, Chordis Capital and Cape Insurance. These are operated by industry experts Russell Martin, David Pinnington, David Totney, Philip Moore, Rebecca Doble, Marc Walker, James England and Rob Lankey and Henry Gallacher. The group offers expertise on financial solutions including asset, bridging and development finance, tax solutions and MBOs – helping SMEs in a range of sectors, property developers (including allied trades and professionals) and investors. One such business benefitting from ARMCo’s expertise is Fitzpatrick Group Ltd – a housing delivery service provider with a requirement for finance provision to aid its expansion into a number of specialist sub sectors. The firm’s Managing Director, Mark Fitzpatrick, explains: “I have worked with Russell for more than a decade, initially through Finance 4 Business (F4B), through which I have had in excess of 25 loans arranged for me, across many disciplines and through a multitude of different lenders, from commercial mortgages, Buy-To-Let and bridging loans, to development and asset finance. The attention to detail, end-to-end service and dedication has been a staple feature of the service.  “The evolution of ARMCo has seen the inception of some great businesses led by fantastic people, with whom I have transacted on many occasions, with great satisfaction and results. The launch of ARMCo makes absolute sense and I have no doubt Russell and his team will go from strength to strength.” Russell concluded: “Success in any business involves being able to navigate a market, identify business opportunities and be agile enough to be able to plug gaps in the market. I have applied that formula to my businesses, and the ARMCo offering can now support businesses in realising their ambitions, as we all try to navigate our way through these turbulent times. We are a group of companies built on strong relationships, not transactions, and I’m delighted to have such robust and proven expertise on board at ARMCo. We have ambitious expansion plans, and will be adding more companies to provide further synergy within the group.” For further information about ARMCo visit www.ARMCo.partners.

Hilltop Credit Partners, a UK-based specialist development funding partner, has secured investment from Metropolitan Real Estate, the global real estate multi-manager platform. As part of this, Hilltop will target to deploy up to £300 million over the next three years to finance the construction of over 1,000 new residential units across the UK, with a focus on affordable regional markets with strong supply-demand fundamentals. The investment provides Hilltop with an immediate opportunity to grow its existing UK residential development finance platform. An investment of this type is critical to achieving the UK government’s target of delivering 300,000 new homes per year. “I’m delighted to announce this partnership, which further establishes Hilltop as a leading player in the UK development lending market. Working with Metropolitan Real Estate will bring together our collective experience in real estate and credit to support proven housebuilders in the UK, and to promote greater housing supply. This partnership is a validation and recognition of our work so far, and we look forward to growing our lending portfolio across Britain this year,” said Paul Oberschneider, Founder and CEO of Hilltop Credit Partners. Hilltop believes that UK residential development lending has fallen up to 40% since 2008, as high-street banks have withdrawn from the market due to new regulatory capital requirements and the impact of Covid-19. The UK could therefore face a funding gap of c. £200 billion that will need to be covered over the next decade in order to achieve the government’s housebuilding targets. Hilltop is backed by global real estate investment firm, Round Hill Capital, and the firms’ combined expertise, industry knowledge and access to capital has facilitated the construction of 250 residential units across the UK to date. The partnership with Metropolitan brings further institutional validation of Hilltop’s strategy and track record. Metropolitan committed c. £60 million in 2021 to purchase a portfolio of existing development loans across five regions and to continue funding the active pipeline. This commitment also demonstrates the strong appetite among institutional investors for the attractive risk-adjusted returns offered by residential real estate credit strategies. Despite the challenging economic backdrop in 2020, UK residential property prices rose at their fastest rate in six years, as strong pent-up demand coincided with a slowdown in the supply of new housing, with more affordable regions outside of London showing the strongest performance.

Homes are selling quickly at the new gated ‘Bridgford Place’ complex in West Bridgford, and interested buyers are encouraged to register interest with the stamp duty holiday extension and introduction of the 5% deposit mortgage scheme. Comprising a total of 30 one and two-bed apartments, 75% of which were sold by selling agents FHP Living by practical completion of the development, Bridgford Place by Buildwell Developments offers modern, luxury and eco-friendly living in the very heart of West Bridgford town centre, just a stone’s throw from Central Avenue. Following Chancellor Rishi Sunak’s announcement of the 5% deposit mortgage scheme and stamp duty holiday extension up until the end of June for properties up to the value of £500,000, and the end of September for homes up to the value of £250,000, interested buyers are encouraged to act quickly to snap up one of the six remaining apartments in the heart of West Bridgford. Each of the last remaining apartments offer a large open plan living space, en-suite shower room, family bathroom, zoned underfloor heating and allocated parking space on-site or across the road. The remaining apartments are located on the ground, first and top floor of the three-storey scheme, with prices ranging from £222,500 to £265,000. All homes have been finished with a light, contemporary design with high spec fixtures and fittings including German kitchens, Bosch cooking appliances, integrated dishwasher, washer dryer and fridge freezer, quartz worktops, luxury bathrooms with Roca sanitaryware and Grohe showers, Karndean flooring and 80/20 wool twist carpets. Allocated parking is available for certain properties on site, and external parking spaces are available on a rental basis, for apartments without parking. With Central Avenue on its doorstep, Bridgford Place benefits from an array of amenities easily accessible on foot, including parks, bars, restaurants and cafes such as Costa Coffee, Copper, Yumacha, The Botanist, Portello Lounge and Escabeche, and convenient supermarkets for essentials such as the Co-op and  M & S. Just two miles from Nottingham city centre, regular bus services including the 5 Green Line run frequently from Rectory Road through West Bridgford, Trent Bridge, The Meadows, Nottingham City Centre and the Lace Market. Following the COVID-19 pandemic and the latest announcement of plans to gradually ease lockdown restrictions over the coming months, Nottingham has seen an influx of people moving to the city – as many look to relocate from London and other major cities. The chief executive of Invest in Nottingham, among many local experts, puts the rise of people moving from the capital to Nottingham down to the city’s attractive, affordable house prices and lower cost of living*. FHP Living has already seen a 23% increase in enquiries from prospective buyers interested in moving from London to Nottingham this year.