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Shortage of bricks and bricklayers in UK could hamper new home building
The increasing shortages of bricks and bricklayers in the UK could threaten future house building plans, according to the Federation of Master Builders (FMB). How to solve the current housing crisis is one of the hot topics in the run up to the general election with all parties pledging to build new homes. But the latest FMB state of the trade survey reveals shortages. Half of all small construction businesses, that’s one in two firms, are finding it difficult to recruit bricklayers and 62% of firms are waiting for up to two months for new brick orders while almost one quarter are waiting for up to four months. An additional 16% are waiting for six to eight months. ‘The brick manufacturers are working hard to reignite their kilns which were mothballed during the recession and the ever growing lack of bricklayers is causing concern,’ said Brian Berry, FMB chief executive. He pointed out that compared to this time one year ago, more than twice the firms are reporting difficulties recruiting these tradespeople. In the short term, many SME house builders may have to rely on migrant labour. ‘To ensure we have an ample supply of skilled workers in the future, the next Government must ensure it sets the right framework in terms of apprenticeship funding and apprenticeship standards,’ said Berry. ‘Also more construction firms, large and small, need to willingly engage with training. After all, there’s strong evidence to suggest that training apprentices is good for business,’ he added. The survey also shows that the private new housing market saw its net balance increase by 5% to +13. More businesses reported higher workloads while those indicating no change in workloads decreased to 49% from 62% in the fourth quarter of 2014. The net balance for total enquiries remained in positive territory for the eighth consecutive quarter as it jumped by 27% to +29. Fewer firms stated lower levels of enquiries, compared with the previous quarter, while more respondents reported a higher level of enquiries. The net balance for total expected workloads increased by 25% to +30. The percentage of businesses with negative expectations went down, to 15% from 24%, while those anticipating higher workloads saw a rise, from 29% to 45%. Around 40% of firms predict no change in workloads, down from 46% in the previous quarter. The residential sector’s net balance moved back into positive territory as it rose by 22% to +19. Some 32% are predicting higher workloads over the next three months, up from 18%, while fewer firms are anticipating lower workloads. The private new housing market’s net balance jumped by 24% to +30. The proportion of firms with positive expectations for workloads went up from 22% to 41%. In contrast, those anticipating lower workloads declined, to 11% from 17% in the previous quarter. Continue reading
UK dream home is in the South West and less than 10 years old
The UK’s dream home would be a four bedroom detached property by the sea in South West England that is less than 10 years old, according to new research. Indeed some 31% of those surveyed would like a modern home and a home in the countryside is a popular choice, which 39% said they’d like and just 6% said their perfect place would be in a city. The South West was the most desired part of the country to reside where 26% would choose to live, according to the research from AA Home Membership. However, the research also revealed that if money were no object, many people would choose to stay in their local area. For example, 69% of Scots say their dream home would be in Scotland and 71% of Welsh respondents would stay in Wales. But it wasn’t a trend that extended to the whole of the country. Some 35% of those living in the West Midlands would like to live in the South West while 29% would choose to stay put. Similarly, 20% of respondents living in the East Midlands would continue living there while 27% would also like to move to the South West. ‘This research shows that the British public largely agree about what they want in a dream home except for the location,’ said Helen Brooker, head of AA Home Membership. ‘It’s interesting that, if given the chance to live anywhere, many people would choose to live in the area where they’re from. But other than that, the South West is the most popular location in the UK. If everyone went there maybe it would become so crowded it would lose its appeal,’ she pointed out. The research shows that while younger people aspire to own substantial properties, older respondents have more modest ambitions. Home owners aged over 65 are the age group most likely to want a two or three bedroom home with 52% saying so. Those who live in the North West are most likely to say that their dream home would not be in the UK at 19% compared to 13% overall. Respondents also had strong feelings about the age of their dream property. Some 73% of respondents want a house that’s less than 100 years old and the likelihood of wanting a new property increases with age. Character properties that are more than 100 years old are not as popular as we might expect as only 18% would like to live in such a home. Adding to the appeal of a home in the South West is the hit BBC television series Poldark which had resulted in enquiries about homes in locations in Cornwall where it was filmed soaring. Estate agents report a rise in enquiries in villages, such as Charlestown, Gunwalloe and Porthgwara, according to property site Rightmove. Brian Deacon, sales and marketing director for Linden Homes, which have a development near Charlestown said reservations and visitor levels at the housing scheme have certainly increased… Continue reading
Demand for UK commercial property surges, latest analysis shows
Demand for commercial property in the UK is growing close to its fastest pace since 1998 and, along with a surge in investment, reflects the widening economic recovery, according to the latest survey. In the first quarter of 2015 the UK saw its 10th consecutive quarterly acceleration of demand for commercial properties, with 46% more respondents seeing greater interest, the commercial market report from the Royal Institution of Chartered Surveyors (RICS) shows. Occupier activity is now at its highest since 1998, highlighting a more broadly balanced economic expansion, says RICS and overseas buyer enquiries are 34% more compared to 17% in the fourth quarter of 2014. In the investment market, enquiries also increased significantly, with 49% more surveyors seeing more prospective investors, continuing the trend of rising demand which began towards the end of 2012. The survey also reveals that availability is falling with 38% more surveyors seeing fewer commercial properties on the market and RICS says that the impact of these tighter market conditions on rental expectations has resulted in them edging upwards to the highest headline level reading since 1998. This is particularly apparent across the industrial and office sectors, while retail rental expectations continue to lag behind. Looking ahead respondents expect, the office sector to perform most strongly with London leading the way despite increasing concerns over the valuation of prime property in the capital. Significantly, there is also increasing confidence that the more upbeat mood will impact on secondary space with rents and capital projections positive in all locations. According to Simon Rubinsohn, RICS chief economist, the strength of the latest commercial property survey suggests that the underlying momentum of the economy will continue to accelerate through the course of this year. ‘What is particularly encouraging is that a better tone to the results is visible in all parts of the country and increasingly in secondary as well as prime space. Given that these indicators have historically provided a strong steer as to the performance of the economy two to three quarters out, it is hard not to be encouraged by the conclusions of this report,’ he explained. Mark Bladon at Investec Structured Property Finance, said that the lack of supply is also having an impact on investment strategies with more investors looking at alternative opportunities in the search for more attractive yields. ‘Student accommodation has long been viewed as an alternative asset class but Investec believes it could be now be viewed as mainstream. We are also seeing consolidation in other alternative property sectors such as serviced apartments and retirement living, where yields are higher,’ he pointed out. ‘For momentum to continue, or for the alternative sectors to reach their full potential, the financing market will need to remain nimble and innovative in the face of these shifting trends,’ he added. Continue reading
