New record for UK construction output inflated, says Barbour R

ecent figures showing that UK construction output had hit record figures and a substantial yearly rise of 15%, have been dismissed by industry expert Barbour

ABI

The construction intelligence specialist says the figures show the effects of inflation on construction products, not a leap in productivity

According to the latest data from the Office for National Statistics (ONS), total UK construction output value reached £204bn in 2022 – the first-time annual construction value has surpassed £200bn

The ONS figures show a 15% rise from 2021 output values in nominal terms, despite mid-2022 forecasts predicting a value closer to £186bn

But when Barbour ABI analysed the difference between real and nominal price indices it found that approximately £23bn has been added to the cost of UK construction since 2019, meaning the value would have been closer to £181bn if prices had remained at pre-pandemic levels

It attributes this increase in output value to inflationary effects driven by post-Covid19 shortages, the war in Ukraine, and the cost-of-living crisis, leading to energy and material prices rising

“Price rises were at record levels over summer 2022, with many goods seeing 25% annual inflation,” explains Barbour ABI’s AMA research director, Laura Pardoe “This has now dropped closer to 15%, but some products still hover well above 20% and insulation products have recently jumped to 50% ”

Looking ahead, Barbour ABI chief economist Tom Hall believes that the UK economy is will face headwinds that could reduce the viability of many building projects. Increases in base rate to 4%, for example will hit the housing market while lack of growth in the UK economy will lead to cuts in consumer spending

“Construction product inflation and shortages are expected to ease over the second half of 2023 but will not return to the stability in the 2010’s Contractors are working on razor-thin margins All in all, 2023 is likely to be another bumpy year,” he says

Despite this, Barbour ABI also saw high levels of contract awards agreed throughout 2022, which reached a record high in Q1 2022

As a result, Barbour ABI predicts high levels of activity in construction during 2023 in the infrastructure, warehousing, and health sectors

Tim treks across Dartmoor for Debra

Tim Jackson, an area sales manager with Marley, is trekking 107 miles around Dartmoor National Park in Devon this spring to raise funds for DEBRA.

The national charity supports people affected by Epidermolysis Bullosa, a painful genetic skin blistering condition known as 'Butterfly skin' Tim and his daughter have the condition, which affects them every day. He is carrying a 20kg backpack so

Bobcat: US honour for compact loader creators

The inventors of the world's first compact loader – the forerunner of the Bobcat skid-steer loader – are to be inducted into the National Inventors Hall of Fame (NIHF) in the United States

Louis and Cyril Keller, who held six US patents between them, will be honoured for their invention that enabled builders to work in tighter spaces and with greater flexibility

The brothers were running a small machine-blacksmith shop in Minnesota when, 1957, a farmer asked them for a self-propelled loader that was light enough to be lifted to the second floor of a turkey barn and small enough to clean around the barn’s upright poles

Within six weeks they had built a threewheeled loader with two drive wheels in front and a caster wheel at the rear: the world’s first loader to use skid-steering.

Its patented clutch system, operated with two hand levers, meant it could be steered without a steering wheel by putting put one side of the loader into forward and the other side into reverse all without using a transmission gearshift

The NIHF annually recognises inventors, promotes creativity, and advances the spirit of innovation and entrepreneurship

F a m e i n 1 9 9 9 a n d t h e M i n n e s o t a I n v e n t o r s H a l l o f F a m e i n 2 0 0 4 he can be self-sufficient and camp in the wild

Tim will cover almost 15,000 feet of elevation change during the 3-4 day trek, with a maximum height of 1,391 feet

Tim will be sharing his location so anyone who wants can join him and, he hopes, bring biscuits

If you would like to support Tim’s trek, please visit his Just Giving Page Timmy’s 107 mile Dartmoor Way trek

Lofthouse wins 2023 South Master Builder Awards

national title, which will be announced at the national ceremony on 22 September 2023 by compere and host Nick Knowles

The company is now shortlisted for the

The awards recognise dedication to employees and clients, as well as outstanding business management and leadership.

Bargate Homes begins sales at St Thomas' Mead Bargate Homes has started sales at its St Thomas' Mead development in Old Bedhampton, Hampshire, with prices ranging from £300,000 to £625,000

The development features a range of two-, three-, and four-bedroom houses, bungalows, and chalet bungalows. The homes are constructed to EPC-B standards, which enables purchasers to benefit from Green Mortgage rates

Bancon Homes

Bancon Homes starts next phase at Aden Meadows

Bargate Homes

The homes come with high internal and xternal specifications that exceed Building Regulations. Standard features include underfloor heating, stylish kitchens and bathrooms, and a choice of quality flooring options

Built next to a freshwater stream in the Old Bedhampton Conservation Area, the homes feature traditional and detailed architecture to be seen in the older houses The grounds now benefit from new tree planting, landscaping, and measures to improve biodiversity

Beal Homes plans £30m scheme in Kingswood, Hull

Beal is returning to Hull's Kingswood district with a £30m project that will deliver more than 150 homes

The King's Fold development will consist of two and three-bedroom houses built in mews style, forming a village-like atmosphere around courtyards on a 10-acre plot

Beal has a long history in Kingswood, having constructed more than 1,200 homes during the last 26 years

Beal Homes

Elan Homes secures consent for 100 dwelling Worcestershire estate

Elan Homes has secured an 8 25 acre site on Stourport Road in Bewdley, Worcestershire, with outline planning consent for up to 100 dwellings

Bancon Homes is starting the next phase of its Aden Meadows development in Mintlaw, Aberdeenshire, consisting of 28 detached homes with garages, ranging from three to five bedrooms

Available in nine different styles, starting from £269,995, these homes will have solar PV roof panels and are expected to have an EPC Band B Energy Efficiency Rating

They all feature well-designed living spaces with full-height windows, flooding the rooms with light The designer dining kitchens from Laings of Inverurie come complete with premium Siemens appliances

Many homes also include utility rooms and a separate study or family room, providing ample space for families to enjoy The bedrooms are spacious and have built-in oak finish wardrobes, while the bathrooms and ensuites are tiled with high-quality Porcelanosa tiling.

The homes have spacious gardens and are close to the 230-acre Aden Country Park, which has nature trails, woodland walks, a heritage centre, and a children's adventure playground

Rippon Homes opens Market Rasen show home

Elan Homes

The developer is currently working on a reserved matters application, with plans to submit it in the summer The proposed anging from one to five bedrooms, comprising both private sale homes and affordable housing.

The site will also provide designated public open space, including a play area, as well as financial investments in the local community worth over £340,000

These investments include almost £220,000 for education, almost £40,000 for health contributions, almost £55,000 for highways and traffic measures, and over £30,000 for sports facilities contributions.

Life Less Ordinary to build 40 flats in Orpington

Boutique property developer Life Less Ordinary has received approval from the London Borough of Bromley to construct a 4/5 storey mixed-use development with 40 luxury flats in Orpington High Street

The development is set to include a 40,000 sq ft retail space, with the nearby Orpington GPO restaurant and bar set to occupy the premises as a florist, butcher, and coffee shop

Life Less Ordinary

The 40 apartments will comprise one, two, and three-bedroom units, each with bespoke German kitchens, stylish bathrooms, private balconies, and shared landscaped amenity space

Construction will start by May with a build programme of 18 months and sales expected to launch in Summer 2024.

Rippon Homes has unveiled its Windsor show home at the Fox Hollow development located near Market Rasen

The project includes a mix of 98 homes ranging from two to four bedrooms, including semi-detached and detached houses and bungalows

The show home was created by Etch Interiors, with creative director Hannah Stelling aiming for a comfortable and relaxed feel

She says she focused on an organic, soft and natural feel, with earthy tones, natural fabrics like linen and warmer walnut furniture, complemented by brass accents, deep greens and warm taupe colors, giving the house

Rippon Homes

Honey applies to build 95 Barnsley homes

Honey Hayfield

The eight-acre development on Barnburgh Lane in Barnsley will feature 95 two, three, and four-bedroom homes, and will be funded by private equity firm Alchemy Partners via its Alchemy Special Opportunities Fund IV

Honey's 16 house types have been designed for “style, substance, and sustainability”, with prices starting at £170,000 for a two-bedroom mid-terrace property

Standard features in every Honey home include bi fold doors, individually designed fully integrated kitchens and boutique style bathrooms with a signature free standing bath and full height tiling. All properties will have an electric vehicle charging point.

In addition, the house types will accommodate the Future Homes Standard which requires all new homes being built from 2025 onwards to produce 75-80% less carbon emissions

Subject to approval by Barnsley Metropolitan Borough Council, construction is expected to begin in June, with the first residents moving in by Q1 2024

The company previously submitted plans for a £14m, 50-home development in South Normanton, Derbyshire, earlier this year

Metis Homes to provide 17 affordable homes

Under an agreement with New Forest District Council, Metis Homes will provide 17 homes for affordable housing at the Forest Edge development in Fordingbridge, Hampshire

The development includes a mix of 63 houses and apartments, all designed to achieve an EPC rating of B, with electric vehicle charging points, high levels of insulation, and thermal efficiency

The market homes are eligible for 'green mortgages' with more favorable rates, and the fourbedroom houses have solar PV panels, allowing residents to generate some of their electricity and reduce their carbon footprint

Metis Homes

The development plan also includes two play areas, a purpose-designed dog agility course, and access to forest walks right from the development boundary, all surrounded by mature woodland trees

Sigma Homes begins £8m scheme in Cuckfield, West Sussex

Sigma Homes has launched an £8 3m development, Hanlye View, in Cuckfield, West Sussex

The development, comprising 13 energy-efficient homes, is on the site of the former Court Meadow School, which had been vacant for a decade.

The scheme features a mix of three- and four-bedroom homes, ranging from 1,100 to 1,707 sq ft Nine of the 13 homes are now on the market, priced from £730,000, with the first properties expected to be ready for occupancy by the end of September 2023

The properties will also have electric car charging points and high levels of insulation, achieving a high EPC-B rating

Hayfield to build 50 home estate at Gotherington, Gloucestershire

Solihull-based Hayfield has submitted a reserved matters application to Tewkesbury Borough Council for a development of 50 new homes in Gotherington, Gloucestershire.

The £35m scheme will be built on a 6 27-hectare site just north of Bishops Cleeve and will consist of a mix of two, three, and five-bedroom EPC A-rated homes and bungalows. The development will feature 20 affordable homes and the rest will be available for open-market sale

Each home will be energy efficient and equipped accordingly with solar PV panels, an air source heat pump, underfloor heating, increased insulation, water efficiency measures, and electric vehicle charging points

The development's design will be inspired by the character of Gotherington's existing properties, and the materials used will reflect those used throughout the village

The site will deliver a biodiversity net gain through measures such as native tree planting, installing an attenuation pond, and introducing wetland wildflowers

Sigma Homes

The development follows a traditional settlement pattern and will feature new trees and hedgerows for biodiversity. Additionally, Sigma Homes will donate more than £208,000 as part of S106 agreements to support local schools, health services, and other amenities

The latest figures from the Builders Merchant Building Index (BMBI), published in March, reveal that year-on-year value sales to builders and contractors by Britain’s builders’ merchants were up +0.2% in January 2023 compared to the same month in 2022. This nominal growth came from inflation as volume sales were down -16.5% while prices rose +19.9%. With an extra trading day this January, like-for-like sales were -4.6% lower.

January merchant sales marginally up but volumes still down year-on-year

Nine of the twelve categories sold more in January compared to the previous year Renewables & Water Saving (+46 0%) continued to perform strongly, while Decorating (+20 5%), Plumbing, Heating & Electrical (+17.5%), Workwear & Safetywear (+14.4%) and Kitchens & Bathrooms (+12 4%) also did better than overall sales Heavy Building Materials grew more slowly (+4.8%). Timber & Joinery Products (-14 6%), Landscaping (-11 8%) and Services (-0 5%) all sold less

Month on month

Month-on-month, total merchant sales were +31 1% higher in January 2023 than seasonal low month, December 2022 Volume sales also grew (+28.6%) with price slightly up (+1 9%) With five more trading days in January, like-for-like sales were flat (-0.1%). Renewables & Water Saving (+49 6%) grew the most, followed by Ironmongery (+38 0%), while Decorating (+34.6%), Timber & Joinery Products (+33 9%) and Heavy Building Materials (+32 2%) also performed well

Rolling 12-months

Total merchant sales in the twelve months from February 2022 to January 2023 were +5 3% up on the same period a year before. Price inflation was a double digit +16 5% while volumes were down -9 6% With two less trading days in the most recent period, like-for-like sales were +6 2% higher Ten of the twelve categories sold more with Renewables & Water Saving (+32 5%) and Kitchens & Bathrooms (+17 7%) the standout categories Decorating (+11 4%) and Heavy Building Materials (+10 5%) also did netter than merchants overall Timber & Joinery Products (-5.0%) and Landscaping (-2 5%) sold less

Ian Doherty, Chief Executive of Hexstone, and the Owlett-Jaton brand and BMBI’s Expert for Fastener & Fixings said: “The introduction of the UK’s own UKCA mark has continued to be a vexed issue for fasteners and fixings Along with other building products, they fall under the Construction Products Regulations UKCA replaces the European CE mark, which indicates that products for sale conform with all necessary safety, technical, and performance requirements

“In December, new advice was issued by the Department for Levelling Up, Housing and Communities (DLUHC) This advice differed markedly from the previous advice, but the good news is that CE will continue to be recognised on CPR products until the end of June 2025, removing any shorter-term concerns about availability of products which meet regulations.”

Emile van der Ryst, Key Account Manager – Trade & DIY, GfK, which compiles the data for the BMBI report, added: “Due to market turmoil in 2022, some of the monthly figures need further context This month is affected by Heavy Building Materials, Timber & Joinery and Landscaping distorting the total market view.

“These three categories make up around 75% of total market value and heavily influence topline trends but they are each quite different Heavy Building Materials has one of the lowest average prices of the categories but has seen larger than market average price growth

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