Tag Archives: infrastructure
UK building industry facing severe shortages, says RICS survey
The UK’s construction industry is facing its greatest skills crisis since 1998, with bricklayers and quantity surveyors in shortest supply, a new survey shows. These highest skills shortage on record are set to limit sector growth potential but despite this a sharp growth in construction is reported across UK, according to the report from the Royal Institution of Chartered Surveyors (RICS). Over half of respondents, 53%, reported difficulty sourcing labour, with 71% saying they had particular difficulty sourcing bricklayers and 64% highlighting a shortage of quantity surveyors. During the same period in 2011, just 1% of respondents were struggling to find bricklayers and only 15% noted a shortage of quantity surveyors. In addition to labour supply, 69% of firms said that financial constraints, such as access to credit, were among the biggest constraints to growth, while 60% said that regulatory and planning issues were potent constraints. However, despite these challenges, the survey shows significant areas of growth, with the number of new construction projects increasing, particularly in private housing and commercial sectors. While official figures, which are often subject to revision, highlighted a slight contraction in output over the three months to August, a substantial proportion of respondents in the RICS survey reported an increase in their workloads, a net balance +39%, with 29% of firms saying that they were operating at full capacity. The private housing and commercial sectors continue to lead the growth in workloads with net balances of 47% and 46% respectively reporting an increase. However, momentum was least firm in the public sector with net balances of 12% and 21% reporting growth in workloads in the housing and non-housing segments respectively. Meanwhile, in the infrastructure sector, growth accelerated somewhat with a balance of 34% seeing workloads rise, up from 25% in the previous quarter. ‘While it’s exciting to see that the UK is experiencing growth across the construction sectors, future growth will only be sustainable if the growing skills crisis is addressed. The availability of both blue collar and white collar construction workers is reaching crisis point,’ said Simon Rubinsohn, RICS chief economist. ‘We haven’t witnessed a labour shortage of its kind in nearly 20 years. Without the relevant skills, we will not be able to grow many of the Government’s priority construction sectors such as infrastructure,’ he pointed out. ‘Currently, while we know that there is a serious shortage of skills, we don’t yet know why we have seen such a dramatic drop in the labour market over the past five years. Part of the problem is the legacy of the collapse in the sector following the onset of the Global Financial Crisis,’ he explained. ‘Many professionals and other skilled workers chose to leave the industry and quite simply have not returned or been replaced. A real focus on attracting more young people into the industry is critical alongside an expansion of apprenticeship opportunities,’ he added. Continue reading
Some 200,000 new homes announced for the east of London
A new masterplan has been unveiled that will see 200,000 new homes built in the east of London, adding to a number of major developments already taking place in the area. The Mayor of London, Boris Johnson, announced the City in the East masterplan which includes development from London Bridge to the Isle of Dogs and Greenwich Peninsula, right through to Ilford in Essex and Dartford in Kent. He said that it is designed to bring together a vast number of major developments that are already taking place in the capital, known as designated Opportunity Areas, which have been identified as London's major source of brownfield land with significant capacity for new housing, commercial space and other development. In 2004, the Mayor's Office estimated East London had the capacity for 52,000 new homes. But detailed modelling, which includes linking 13 Opportunity Areas, carried out by City Hall but now a minimum of 203,500 homes could be delivered over the next 20 years. The City in the East document also contains a series of maps, which for the first time brings to life how the city is moving eastwards, covering much of the Thames Gateway, and could benefit from improvements to transport infrastructure such as Crossrail and HS1. Plans show an overground extension to Barking Riverside, which will enable the creation of 10,000 new homes and could be operational by 2020. The blueprint also includes longer term potential to place the A13 in a tunnel, deliver a new station and build new homes in the area. These projects are one of a number being made possible by Transport for London's Growth Fund, which is designed to target transport improvements in areas where there is potential to unlock new homes and jobs. It envisages how land across East London could be split up for commercial and industrial use and suggests where new schools, work space and hospitals could be located. ‘East London is already enjoying incredible growth and the City in the East plans reflect how we make the area an even better place to live and work over the next 20 years,’ said Johnson. ‘This blueprint reflects identified areas of land in London to build on and it will allow us to co-ordinate not only housing and commercial developments, but significant transport infrastructure to ensure this part of the capital can continue to flourish with hundreds of thousands of new jobs that will help the capital to remain the best big city in the world,’ he added. According to Alex Williams, director of borough planning at Transport for London, said that east London is expected to be one of the largest growth areas in the capital, with the population set to increase by 600,000 in the next 15 years. ‘Transport schemes such as the Overground extension to Barking Riverside and new river crossings will truly transform the area. London's transport network is vital to the economic and social wellbeing of this city… Continue reading
UK govt announces changes to shake up house planning and get more homes built
A series of planning reforms announced today by the UK government aimed at boosting house building have been widely welcomed by the property and construction industries Under the changes planning permission will be granted automatically for homes on brownfield sites, even over ruling wishes of local authorities in England. But experts warned that councils will not like the move although they have been heavily criticised for not creating local plans and taking too long to make decisions. Ministers will also get powers to seize disused land which is suitable for houses and major housing projects are set to be fast tracked through the planning system. There will be penalties for local authorities that make 50% or fewer planning decisions on time in a bid to inject some speed into the planning process. The rules on extensions in London are to be relaxed in terms of building upwards to match neighbouring levels and the Mayors of London and Manchester are to get power over planning in their cities. The British Property Federation (BPF) said the changes have the potential to be an enormous boon to housing supply but it warned that some of the new measures will only work if the government addresses the severe shortage of funds within local authority planning departments. The BPF also urged the government not to over focus on providing new homes for sale and pointed out that there is also a need for more purpose built rental accommodation in order to combat the housing shortage and deliver a more balanced housing market. Melanie Leech, chief executive of the BPF, British Property Federation, called for a dialogue with both the public and private sectors on how to address the severe shortage of funds which is afflicting local planning departments. ‘The private sector will need to play a part in helping to address this funds shortage, and this needs to be explored fully if we want these new measures to work. We would also have liked to have seen some commitment to growing the purpose built rental sector, which has an important part to play in solving the housing crisis and creating a balanced housing market,’ she said. ‘We warmly welcome the government’s recognition of how a functioning and efficient planning system can contribute to the UK’s growth by creating not just new homes, but also the infrastructure that supports great places,’ she added. Leech explained that a lack of dynamism among local authorities on Local Plans should be addressed by the government being able to intervene. ‘Local Plans are fundamental to growth, and we are firm believers in a plan led system. There are still areas, however, without a Local Plan in place, and so we are pleased to see that government is taking steps to ensure that plans are delivered in a timely fashion,’ she said. ‘A number of recalcitrant local authorities have been dragging their feet and producing bloated local plans that are overly long and simply… Continue reading
