Design Buy Build Issue 32 2018 | Page 4

Industry News Southern Builders Are Growing Despite Rise In Costs Construction firms in the south of England enjoyed strong growth in the first quarter of 2018, according to the Federation of Master Builders (FMB) South. Key results from the FMB’s latest State of Trade Survey, which is the only quarterly assessment of the UK-wide SME construction sector, include: In terms of workloads, expected workloads and enquiries, the combined indicator for the performance of South Eastern construction SMEs the balance of responses remained clearly positive at +17%, but fell by 6 percentage points compared with the previous quarter, indicating a slight fall in positive responses; In terms of workloads, expected workloads and enquiries, the combined indicator for the performance of South Western construction SMEs, the balance of responses rose 16 percentage points in Q1 2018 compared with the previous quarter, to +20%, indicating a marked increase in positivity; More construction SMEs predict rising workloads in the coming three months, up from 38% in the previous quarter to 49% in Q1 2018; 90% of builders reported increasing material prices in Q1 2018, this is the highest reading on record. Housebuilders call on Government to recognise progress and not provide ammunition for NIMBYs Industry can deliver Government targets but needs support • Housing supply above 1950s levels and on track to meet Government’s 1M target • Industry delivers fastest increase in output ever recorded • Help to Buy supporting tens of thousands per year into home ownership • Latest customer satisfaction scores bounce back as industry reacts to quality issues • Investment by builders in future delivery up • Housebuilders made £6bn contributions to infrastructure and local services last year • Private sector now delivering half of all affordable homes Housebuilders today called on ministers to recognise the achievements of the industry in delivering the Government’s housing commitments and meeting every challenge Ministers have Following Sajid Javid’s appointment as home secretary, Theresa May has nominated James Brokenshire MP as the new secretary of state for housing, communities and local government. laid down. The industry is well on target to deliver the million homes Government challenged it to but is highlighting the risk of negative rhetoric about new housing supply “providing cover for NIMBYs and energising anti- housebuilder campaigners” and damaging attempts to address the skills shortage. With housing supply now above the levels recorded in the post war years and up 74% in four years; satisfaction scores released today showing build quality is improving; private sector builders providing 50% of all affordable housing as part of community contributions of over £6Bn a year; tens of thousands of new employees being recruited and trained; and a record number of planning permissions being applied for as the industry gears up to deliver Government’s pledges to young people and 300k homes a year, the industry believes Government should be recognising the progress being made by private sector housebuilders and working with them to positively position an industry that needs public support, and more recruits, to deliver Government targets. Richard Beresford, chief executive of the NFB, said: “SMEs have a crucial role in building communities and place-making across all regions of the UK. SMEs have a unique understanding of their local communities and smaller development face less opposition. Carillion has, hopefully, taught us not to put too much faith in the market’s larger players delivering on public aspirations. A more diverse market that encourages SME participation is key to fixing the housing crisis.” The House Builders Association (HBA) – the house building division of the National Federation of Builders (NFB) – congratulates Mr Brokenshire on his appointment and looks forward to working with him to promote the importance of SME house builders. With the share of SME house builders witnessing an 80% decline over the last three decades, the number of home completions went down from 242,360 in 1988-89 to 178,450 in 2016-17. 4