Almost 200 businesses sign open letter to Government
Small and medium enterprise (SME) housebuilders delivered a letter to Prime Minister Rishi Sunak this week, requesting urgent action to save their businesses.
The letter comes as a survey reveals that 93% of smaller developers are considering reducing construction output or changing the direction of their business.
The coalition of developers claim that Government policy is “devastating our businesses”, with 166 firms calling on Sunak to act.
We are writing to inform you that we are facing multiple existential threats to the survival of our businesses…unless solutions are found to the barriers preventing us from building the new homes this country so desperately needs.
SME letter to the Prime Minister, 07 July 2023
These harmful policies include the planning process, which was featured as the strongest threat facing small and medium-sized businesses, and described as “cumbersome and inefficient”.
The letter also cites interventions on nutrient neutrality, the burden of new taxes and skills shortages as crucial blockers to new development.
Meanwhile, former Housing Secretary Simon Clarke responded angrily to the Environment Agency (EA), who have admitted that they do not know how long the nutrient neutrality crisis will hamper housebuilding.
Branding the response from interim EA boss John Curtin as “totally unacceptable”, Clarke added that “the situation needs urgent action from the Government.”
Average house price falls for third consecutive month
The average property price fell by -0.1% in June, according to the Halifax, who published their latest house price index this week.
The slight fall, which saw the average house price valued at £285,932 (May: £293,992) means that the annual rate of house price growth fell from -1.1% in May to -2.6% in June.
However, new build property prices were up by 1.9% over the year, albeit the rate of growth has continued to slow, and has now dropped to its lowest level in more than three years.
Annual house prices are falling in most parts of the UK, with the exception of the West Midlands (1.5%), Yorkshire & Humberside (0.2%) and Northern Ireland (0.2%).
The annual drop of -2.6% (-£7,500) is the largest year-on-year decrease since June 2011. With very little
Kim Kinnaird, Director, Halifax MOrtgages
movement in house prices over recent months, this rate of decline largely reflects the impact of historically high house prices last summer – annual growth peaked at +12.5% in June 2022 – supported by the temporary Stamp Duty cut.
Meanwhile, the S&P Global / CIPS UK Construction Purchasing Managers’ Index recorded a construction output value of 48.9 in June, down from 51.6 in May and below the 50.0 threshold for the first time in five months.
Any value below 50.0 signals market contraction.
Housing work decreased at the strongest pace since May 2020, registering a value of 39.6, with rising borrowing costs and a gloomy market outlook named as the key reasons for weaker demand.
Sharp rise in annual construction fatalities
The Health and Safety Executive (HSE) has revealed that 45 construction workers were killed in site accidents during the twelve months to March 2023.
The figures reflect a rise in fatalities, with 29 registered the previous year, and is also above the five-year average of 37 annual deaths.
Deaths in the construction industry accounted for a third of the total number of 135 people killed in work-related accidents.
The main reasons for fatal injuries across all sectors was falls from height (40), followed by being struck by a moving object (29) and struck by a moving vehicle (20).
Industry pays tribute to Lord Kerslake
Lord Bob Kerslake, the former Chief Executive of the Homes and Communities Agency (HCA), died at the age of 68.
Lor Kerslake passed away on 01 July following a battle with cancer. He was CEO of the HCA from 2008 to 2010.
Joey Gardiner, writing in Building magazine where he is Contributing Editor, stated that “the sector has lost a supremely powerful voice.”
The Home Builders Federation also described Lord Kerslake as “a man of high integrity.”
We’re very sad to learn of the death of Lord Bob Kerslake. We will remember him as a man of high integrity and sound advice, who liked to get things done. Our deepest condolences go to his friends, family and all who knew him.
Home Builders Federation
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