New order expansion has weakened for third successive month, according to new figures.

August data has signalled a further expansion of the construction sector, with the seasonally adjusted Markit/CIPS Construction Purchasing Managers’ Index posting 52.1. However, this was lower than July’s reading of 54.1, signalling that growth slowed for a third successive month from the recent high recorded in May.

A further increase in new work intakes supported the latest rise in activity. However, growth in both new orders and output failed to boost employment. Meanwhile, confidence over future business expectations improved.

Sarah Ledger, Economist at Markit and author of the UK Construction PMI said: “PMI data indicated that the UK construction sector continued to expand in August. However, overall activity growth lost further momentum, with the headline index over six points lower than May’s recent high, led by a marked slowdown in residential construction growth.

“Although higher than in July, the degree of positive sentiment amongst UK constructors remained subdued in the context of historical data, as concerns over public sector spending cuts persisted. As a result, staff numbers fell for the second successive month, with companies displaying caution with regard to hiring.”

David Noble, Chief Executive Officer at CIPS, said: “Those who are looking for signs of a slowdown will find plenty to worry about in this month’s construction PMI. The most disturbing is the marked slowdown in the residential sector as this is here much of the recent sector growth has come from.

“The slight increase in public sector activity disguises continuing uncertainty about the scale of spending cuts which we have yet to experience. Employment levels falling for a second successive month will cause deep concern, not least for the ripple effects they may have on other sectors.

“For the more optimistic amongst us, however, it still looks like we are entering a period of low growth rather than another recession but the jury's still out. Though this month’s figures are disappointing, we should remember that overall the sector is still growing.

“The housing market is key to recovery in the longer term but now appears to be in a transition phase. There is still a job to be done in balancing stricter criteria for mortgage lending with demand for new homes, if new projects are to get off the ground and reverse the slump in the residential sub-sector.”

www.cips.org

NATIONAL: OFFICIAL STATISTICS FUEL FIRE CONCERNS OVER TIMBER-FRAMED BUILDINGS

For the first time official statistics covering all the fires that occurred in England include a section concerned with fires in timber-framed buildings.

The figures make uncomfortable reading for those living in and those insuring timber-frame, believes Graham Mackenzie, chairman of the British Association of Reinforcement.

The Department of Communities and Local Government Fire Statistics Monitor covers all the fires in England from April 2009 to March 2010. The figures show that if there is a fire in a timber-frame building, whether complete or under-construction, a larger area will be damaged compared to non-timber construction, such as reinforced concrete.

The statistics are startling. 28% of timber-frame dwellings under construction where a fire occurred suffered from 200m2 of damage compared with only 4% of non-timber frame structures. For completed homes, 47% of completed timber-frame dwellings that catch fire suffered damage to an area greater than 50m2 compared to 32% of those built using other forms of construction.

The publication of the statistics will add fuel to the fire of concern over the growing use of timber-frame. Timber-frame construction has grown in popularity because it is relative cheap and fast. Once the preserve of the self-build sector, it is estimated that some 60% of all new social homes are now built using timber-frame.

Both the London Fire Authority and the Fire Protection Association have criticised the use of timber-frame construction. Following the investigation into last year’s major fire in Peckham that destroyed a half-completed 5 storey timber-frame building and badly damaged adjacent blocks of flats.

Brian Coleman, chairman of the London Fire Authority, questioned the use of timber-frame for multi-storey buildings saying: “I have always been a stern critic of high rise timber-frame buildings having seen in my own area the results of a blaze. I personally wouldn’t allow any high rise timber buildings – there needs to be a review of regulations.”

Coleman also poured cold water over the timber industry’s assurances that the main risk is during construction.

He said: “Supporters of timber frame buildings say once they’re built they’re completely safe. But we know people drill holes in walls which damages the building fabric and allows the timber to become exposed.”

www.uk-bar.org

NATIONAL: BURO HAPPOLD WORKS TO TACKLE FUNDAMENTAL INDUSTRY CONCERNS

Rod Macdonald, Chairman of Buro Happold, has initiated a process which is leading to a parliamentary inquiry into the poor design and quality of the products currently available for the construction of our built environment.

Macdonald is working with APDIG, the Associate Parliamentary Design and Innovation Group, along with Constructing Excellence and representatives from the industry to try to gather industry views and to engage designers and manufacturers of construction products in a drive to achieve cheaper better quality buildings assembled from improved parts.

The idea was initiated at a gathering in March when a number of construction sector leaders, parliamentarians, academics, and government officials including Mark Prisk MP, current Minister for Construction, Nick Raynsford MP, former Labour Minister of Construction, and Paul Morrell, the Government’s chief construction advisor, met to discuss the issue and identify a path towards a solution.

Leading the first steering group meeting in July Macdonald suggested that the construction industry has fallen behind others in its adaptation to the modern world and appropriation of new technology, and that the industry should be striving to reach a position where it delivers unique buildings from highly developed parts that are continually evolving and improving.

Both Nick Raynsford MP and Lord Alan Howarth raised concern and need for change in areas of public responsibility while private sector leaders advocated the need and responsibility for quality, leadership and interdisciplinary practice in the design, manufacture and distribution of building parts. There is a general consensus that much of current public sector practice and industry culture is not conducive to continuous improvement.

The group is due to meet again shortly to finalise the details of the enquiry and take it to the industry and government.

www.burohappold.com

NATIONAL: HOUSE PRICES FALL FOR SECOND MONTH IN A ROW

House prices fell for the second month in a row in August, according to the Nationwide building society.

Prices fell 0.9% last month, following a 0.5% decline in July, Nationwide said, adding that it was the first time that prices had fallen for two consecutive months since February 2009. The average house price now stands at just over £166,500.

Nationwide said house prices had "essentially stagnated over the summer". The quarter-on-quarter rate of change - generally seen as a smoother indicator of recent price trends - fell from 1.2% in July to 0% in August.

"As more sellers have returned to the market, buyers have a greater selection of properties to choose from and more bargaining power with which to bid down asking prices," said Martin Gahbauer, Nationwide's chief economist.

But he added: "Given that the price increases of the last year had gotten ahead of the recovery in the wider economy, the current correction is not an unhealthy development."

The annual rate of house price inflation fell sharply from 6.6% in July to 3.9% in August.

www.nationwide.co.uk

NATIONAL: FRISE TO DRIVE HVCA SUSTAINABILITY AGENDA

The Heating and Ventilation Contractors Association has appointed David Frise to the new senior post of head of sustainability.

Formerly managing director of the contracting business M S Frise, Mr Frise served as vice president of the Association in 2007/08, and was the first chairman of M&E Sustainability, a joint venture between the HVCA and the Electrical Contractors’ Association.

He was a founding director of renewables specialist Third Rock Energy and of energy consultancy Cyna, and subsequently general manager of the energy division of national contractor N G Bailey & Co.

He is a director of SummitSkills, the sector skills council for building services engineering, and has served on the CBI working group on the Carbon Reduction Commitment, the SME group of the Strategic Forum for Construction and the Specialist Engineering Contractors’ Group’s working group on the development of integrated construction teams.

Mr Frise stressed that he had learned at first hand the key role building services engineering contractors could play, and were playing, in the creation of a sustainable built environment.

He said: “I am delighted, therefore, to have this opportunity to assist in further enhancing the skills and competence of HVCA members in a sustainability context, and in promoting their expertise in the delivery of integrated energy systems.”

HVCA deputy chief executive, Roderick Pettigrew, said: “David Frise is widely acknowledged as one of the true visionaries of the building services engineering sector, and a pioneer in the use of renewable technologies.

“His appointment further underlines the Association’s deep commitment to the sustainability agenda – and to the provision by its members of low-and zero-carbon systems and solutions.”

www.hvca.org.uk

NATIONAL: UCATT HITS OUT AT COALITION PENSION POLICY

UCATT has hit out at the coalition Government’s pension policy, saying it is unfair on manual workers.

New research by the Office of National Statistics has revealed that the gap between the number of professional workers and manual workers dying before they reach 65 has increased. The research means that the ConDems Government’s plans to increase the retirement age to 66 by 2016 and then increase it up to 70, is directly discriminatory against manual workers.

The report found that between 2001 and 2008 the number of manual workers who will die before they are 65 is now 407 out of 100,000 while the figure for professional and managerial workers is 178 out of 100,000. The research found that the gap between the pre-retirement death rates of manual workers and professionals has widened, from manual workers being twice as likely to die before they were 65 compared to professional workers, to being 2.3 times as likely to die.

The problem is particularly acute in construction where the majority of workers are forced to retire from the industry before the age of 65 due to injury or illness.

Alan Ritchie, General Secretary of UCATT, said: “The ONS figures prove what manual workers already know, that the decision to raise the retirement age discriminates against them. Manual workers are over twice as likely to die before they reach retirement age than professional workers and their overall life expectancy is far lower.

“If the Government had a shred of decency they would rethink their proposals and allow manual workers to retire earlier, in order to be able to enjoy their hard earned retirement.”

www.ucatt.org.uk

NATIONAL: BAM EARNINGS UP

The UK arms of Dutch construction giant, Royal Bam, has reported increased profits of €20.6m (£16.92m) on falling revenues in the first half of this year.

Profits rose by a third on the same period last year, having reached just €15.5m (£12.74m) in 2009. However revenues at the same time dropped 9.5% to €885m (£727.52m).

The firm said it also increased the value of its future order book in the UK, contributing to €12.4bn (£10.19) forward orders across the group, despite the cut backs to the Building Schools for Future programme.

The firm also said its UK construction profits were hit by the high cost of tendering in the country, with revenue falling 16%, as well as the cancellation of BSF.

It said it did not rule out future job cuts in “a number of regions” in the next six months. However, its infrastructure arm, BAM Nuttall, performed well, despite facing increasing competition.

www.bam.co.uk

NATIONAL: RAMBOLL CONTINUES TO STRENGTHEN REVENUE AND PROFIT AT HALF YEAR

Ramboll Group has delivered half year results indicating increased revenue and profit despite a highly challenging market.

A leading North European engineering, design and consultancy company the group has secured a number of significant new contracts.

At the end of June the order book had a value of DKK 2.7 billion, an increase of more than ten per cent compared to the end of 2009. Profit before tax increased by 18% to DKK 145 million. Employee numbers remain steady at just below 9000.

Ramboll in the UK is working on a number of developments for the 2012 Olympics including Eton Dorney Lake Bridge and infrastructure for an eight lane rowing course in Windsor.

The company's environment teams are working with British Waterways to prepare sites for construction including upgrading the well known white water canoe slalom on the Tees Barrage. Tate Modern II is one of the company's flagship structural engineering projects, along with the recently completed Norwich Open Academy, one of the largest cross-laminated timber structures in the UK.

The Ramboll UK team is also heading a number of international projects such as the Presidential Library in Astana, the modernisation and extension of Pulkovo Airport at St. Petersburg and Ferrari World in Abu Dhabi which will be opening later this year.

www.ramboll.com

NATIONAL: WATERMAN BOREHAM CHIEF TO RETIRE

Gerald Frost, Waterman Boreham’s Chief Executive has retired after 13 years at the helm of Waterman Boreham.

Originally appointed in 1996 as commercial director to support Alan Boreham, the then managing director in improving the company’s management processes and operational, marketing and business development strategies. During this time he also saw the introduction of a computerised system to facilitate improved accounting and quality management.

In 1997, Gerald took over the mantle of Chief Executive taking the company, Alan Boreham Associates through a management buyout in 2001 to form Boreham Consulting Engineers Ltd. In October of the same year Gerald supervised the company’s move to its present head office location in Brentwood.

Under his guidance, Boreham Consulting Engineers experienced unparalled year on year organic growth from £3m in a single office in its current head office location in Brentwood to 10 strategically located offices throughout the UK and Ireland. During this period the company reached a turnover of £12.3 million, employing over 185 employees, becoming fully accredited under Investor in People, for its staff development programme in 2002.

Since its acquisition in 2007, by multi-disciplinary engineering company, Waterman Group, Gerald and the present management team have continued to guide the re-branded company Waterman Boreham Ltd to consolidate its market presence as a specialist transportation planning consultancy in what is considered to be one of the worst economic periods since the 1930s.

Gerald said: “I take tremendous pride in the growth of Boreham since 1997. The company’s success was built on quality and motivated staff being focused on helping clients achieve their development ambitions. I am confident that these values will help the company to ‘ride-out’ the current recession and return to growth in association with the Waterman Group.”

John Waiting, Plc Director of Waterman Group is to take over responsibility for the future growth and development of Waterman Boreham.

John said: “Under Gerald’s leadership Waterman Boreham has become one of the UK’s foremost transport planning consultancies. He leaves a strong management team which coupled with the technical excellence of the staff will allow the company to prosper in the constantly changing market.”

www.waterman-boreham.com

NATIONAL: ROK SIGNS CONTRACT WITH INTER PARTNER ASSISTANCE

Rok has signed a contract with Inter Partner Assistance, part of AXA Assistance.

Rok anticipates the contract will lead to a significant increase in the volume of 365-Response claims it handles with an expected contract value of £40m over three years.

As a provider of claims management and property repair services to insurers, brokers and policyholders, Rok’s 24-hour contact centre in Mansfield will handle the service delivery across the country with the majority of heating, plumbing and electrical repairs being carried out by Rok employed technicians.

Inter Partner Assistance has been offering home and property assistance services in the UK since 1986 and is one of the largest property emergency assistance providers in the financial services market.

Rok’s Chief Executive, Garvis Snook, said: “This contract win is a significant success for Rok’s Maintenance and Build division and for the Group as a whole. It reinforces Rok’s position as number one in the buildings insurance repairs and emergency market and we look forward to continuing to provide services to customers, which are second to none.

“Rok and AXA Assistance have formed a long term strategic partnership to provide a best in class home emergency service. Our ability to provide a nationwide repair network using our own people and the quality of our workmanship made us a natural choice for AXA.”

Bob Ewers Chief Executive, AXA Assistance UK, added: “We are very excited about our new partnership as it gives us the ability to manage the customer journey from the first notification of loss, supported by Rok’s nationwide office network. The combined strengths of AXA A and Rok, the directly employed technicians, common IT platform and culture of our two organisations make this a market leading proposition.”

www.rokgroup.com

NATIONAL: SKILLBUILD FINAL HIGHLIGHTS YOUNG CRAFTS PEOPLES’ CAPABILITIES

Young crafts people from around the UK will be demonstrating their considerable capabilities at the national final of SkillBuild 2010.

This year North Wales is playing host to the event on 8 – 10 September at Coleg Menai. SkillBuild is a highly important national competition that takes place annually aiming to promote excellence amongst the UK’s young crafts people.

The National Federation of Roofing Contractors Ltd (NFRC) manages the Roof Slating and Tiling (RST), the Roof Sheeting and Cladding (RSC) and the Reinforced Bituminous Membranes competition for SkillBuild.

Ray Horwood, NFRC Chief Executive said: “The NFRC is very proud to support the SkillBuild roofing competition.

“The finalists for SkillBuild 2010 have already shown a high level of competency in the heats and present a very positive image for the future of the industry.”

www.cskills.org

NATIONAL: BURO HAPPOLD EXPERT URGES RETENTION OF BROWNFIELD CONTROLS

A contaminated land expert at Buro Happold is urging the retention of brownfield controls.

Hugh Mallett, technical director at Buro Happold, said: “Those working in the contaminated land industry have struggled with the complexity of much of the regulation and guidance, as well as the on-going difficulties of threshold values and definition of ‘Significant Possibility Of Significant Harm’ (SPOSH). Therefore, the clarity of Planning Policy Statement 23 (PPS23) has provided a welcome model approach.

“Maintaining and progressing that forward momentum is a challenge and an indication of just how much change there has been in the guidance over the last few years is illustrated by the amount of our key documentation, cross referenced in PPS23, which is now out of date.

“An essential role of PPS23 has been the signposting of essential sources of critical information. Therefore, any replacement document should retain that function and the opportunity is taken to reference all of the current guidance and advice. Although there is some repetition of advice within PPS23 Annex 2 this repetition is entirely helpful.

“The roles and responsibilities of all parties within the contaminated land community are clearly set out with each party having their own section of text. The developer is specifically told what information they, as the applicant, have to provide and the local authority is provided with clear guidance on matters to consider when determining a planning application. The mirroring of the guidance provided in these separate sections leaves no room for doubt and assists in bringing the expectations of all parties closer together.

“It is critical that seven aspects of PPS23 are retained in the proposed revised guidance. That contamination remains a material planning consideration, development should continue to present opportunities to mitigate the risks posed by land affected by contamination and statements should be retained that relate Part 2A and the planning regime.

“Also, that local planning authorities must continue to consult their contaminated land officers, the minimum information required from the applicant is a report of a desk study and walkover survey, it is the developer’s responsibility to carry out the necessary investigation, assessment and remediation and, finally, the standard of remediation is the removal of unacceptable risk and making the site suitable for use.”

www.burohappold.com

NATIONAL: REPORT EXPLORES PROGRAMS TO FOSTER HOUSING INVESTMENT AND DEVELOPMENT

Innovative programs to attract more investment capital to the UK’s housing market and encourage more residential development in the post-recession environment are discussed in Exploring the Future of Housing Investment in the United Kingdom, a report from the Urban Land Institute’s (ULI) Urban Investment Network and the Homes and Communities Agency.

It states: “The recession fundamentally altered the UK housing market. It is constrained by a lack of finance for individuals and businesses, a complex and resource-draining planning system and a deficit in the supply of new housing.”

Because the industry is such a key contributor to the overall economy, the detrimental impact of the challenges must be reversed with new tools to spur more investment and development, it states, adding: “There is a realisation that a return to the ‘traditional’ way of operating will not succeed, and the future success of the housing market depends on a collaborative and more innovative approach.”

The report is based on the findings of a housing finance forum sponsored by ULI and HCA, which included presentations from Sir Bob Kerslake, Chief Executive of the HCA, Nick Salisbury, Director for Barclays Corporate, and Pamela Patenaude, Executive Vice President for the ULI Terwilliger Center for Workforce Housing.

Kerslake said, “It is essential now that the public and private sector work together on the twin challenges of an improving, but still fragile housing market, and on reducing public funding. The HCA is committed to working with our local authority partners to meet local market conditions in different parts of the country.”

ULI Europe, Middle East and Africa President, William Kistler said: “The need to explore innovative solutions to the housing delivery gap is essential if we are to meet housing requirements going forward, and the conclusions outlined in this report are important when considering the future of housing investment in the UK. ULI is pleased to work with HCA to publish this report and facilitate an open dialogue on the issues most relevant to housing in Europe.”

Incorporating comparative case studies from the UK and the US, the report outlines four categories of possible actions that could be taken to foster more investment and development encouraging greater institutional investment through1) more thorough clarification of the lucrative opportunities presented by the residential market; 2) reducing taxation barriers to entry; and 3) simplifying planning laws.

www.uli.org/uin

NATIONAL: NEW REPORT CALLS FOR OVERHAUL OF HOUSING POLICY

A new report from think tank, Policy Exchange, calls for a radical overhaul of housing policy, saving taxpayers around £20 billion a year.

The report finds that Britain is suffering from a housing crisis affecting both social tenants and those struggling to afford to buy their own home. It calls for a big increase in the number of new homes being built for sale or rent in areas of high demand, with social housing tenants given new ways to get onto the first rung of the housing ladder.

Local people will get a veto on how much, if any, development is allowed near them through ballots of those directly impacted. Cash incentives will be available to those affected to help persuade them to vote yes.

Policy Exchange Deputy Director and editor of the report, Natalie Evans, said: “Not only does current housing policy not work, it is also extremely expensive. At a time when public finances are under such strain this is not sustainable. The reforms outlined in this report to social housing and the planning system would save up to £20 billion a year.

“At the same time, rising house prices are making it harder and harder for those who want to buy to do so. We need to get away from the idea that house prices can rise faster than inflation every year without that affecting the ability of people to actually buy.

”Having stable house prices will save everyone money. But for that to happen, we need to make it easier to build houses. So there needs to be major reform of the planning system, such as allowing developers to offer local residents a say and financial incentives to approve development near them.”

The report’s author, Alex Morton, added: “There are many hidden costs for taxpayers behind the recent surge in house prices. It has caused big increases in Housing Benefit plus soaring waiting lists for social housing and ever more demand for heavily subsidised ‘affordable homes’. Falling home ownership has also meant a more unequal society and tension between generations.

“It should be up to local people how much development is allowed near them, through ballots of those affected by proposed developments. The cash incentives will be bigger in areas where housing is more expensive, meaning it is likely that more homes will be built in areas like London and the southeast.”

House prices more than doubled between 1995 and 2009, taking the price of an average home in Britain in real terms from £72,659 to £160,000. Yet fewer and fewer new homes of any sort are being built and many of those for sale are poor quality “rabbit hutch”-style properties. The proportion of Britons owning their own homes is now falling for the first time since 1918. Rising prices mean rising rents – costing taxpayers an extra £8 billion a year in Housing Benefit since 1997.

Social housing waiting lists have also doubled since 1997. Britain is stuck with an expensive social housing sector which traps residents by providing disincentives to work, holding down aspirations while at the same time costing taxpayers around £32 billion a year.

www.policyexchange.org.uk

NATIONAL: ADVICE NOTE ISSUED ON SIGNIFICANT INFRASTRUCTURE PROJECTS

The Planning Officers Society has issued an Advice Note on responding to nationally significant infrastructure projects.

Its publication is most timely since the first applications have now been submitted to the IPC and, as a consequence of the wide areas of consultation, there are an awful lot of authorities affected by NSIPs.

Until now there has been little attention to the situation of local authorities, often small District Councils, which find that proposals for Nationally Significant Infrastructure Projects are coming their way. They have to engage with an unfamiliar regime, with promoters who often have little experience of working with local authorities as significant players in the decision making process, and within timescales designed to deliver early decisions.

Stephen Tapper, President of POS, said: "It goes without saying that, as with so many other aspects of planning, the sooner authorities can get their act together to respond to the imminence of proposals, the more effective they will be, and the better they will be able to represent the interests and concerns of their communities, working within the emerging principles of localism in planning. That is where this advice note comes in."

It has been written to help local authority planners quickly brief themselves on the NSIP regime, prepare their elected members, and begin the process of engagement with the scheme promoters. At the same time they will be able to look ahead to laterstages in the process to think about how they will organise themselves and plan the necessary resources to be effective and influential right through to the eventual decision and its implementation.

The advice note is one of several which the Society will be producing to assist planning authorities in these times of change.

www.planningofficers.org.uk

NATIONAL: SIG CAUTIOUS ABOUT FUTURE

SIG, the specialist supplier of insulation, exteriors, interiors and specialist construction products across Europe, has said it continues to be cautious about its prospects after posting a half year loss.

Despite the Sheffield-based group seeing trading improve in the latter part of its half year to June 30 because of improved weather, sales for the period were down 4% on the first half of 2009 at £1.29bn. This was in line with management's expectations. Sales in SIG's UK and Ireland and mainland Europe markets were hit but the group said it had made an "encouraging start" to the second half of the year.

Total operating profit increased from £2.7m in the first half of 2009 to £11.4m in the first half of 2010. However, underlying profit before tax was £18.5m, a decrease of 16% on the first half of 2009.
Total loss before tax reduced from £9.2m in 2009 to a loss before tax of £2.2m.

The firm's underlying basic earnings per share decreased to 2.1p, a reduction of 51%. Net debt reduced by £28m from £255m at December 31, 2009, to £227m at June 30, 2010.

SIG's chairman, Les Tench, said: "Although overall sales trends since the end of the first quarter have been encouraging, SIG's management remains cautious on how its markets will develop over the next few months.

"This caution is based on the continuing macroeconomic uncertainty and concerns about the potential impact of government austerity measures and credit availability on the timing and path of the construction markets' recovery.

"Accordingly, across the group's businesses the focus remains on driving through the operational benefits of the major restructuring changes made over the last two years, protecting and enhancing SIG's strong market positions and gross margins, and making further cost savings as appropriate, to rebuild profitability."

www.sigplc.co.uk

NATIONAL: JULY HOUSE PRICES UP 0.4 PER CENT

The July data from Land Registry's flagship House Price Index shows an annual price increase of 6.7 per cent which takes the average property value in England and Wales to £166,798.

The monthly change from June to July is an increase of 0.4 per cent. Nine regions in England and Wales experienced increases in their average property values over the last 12 months. The region with the highest annual price change is London with an increase of 12.1 per cent.

The region with the greatest annual price fall is the North East with a movement of -1.4 per cent. The South West experienced the greatest monthly rise with a movement of 2.2 per cent. Wales experienced the most significant monthly price fall with a movement of -1.1 per cent.

The most up-to-date figures available show that during May 2010, the number of completed house sales in England and Wales rose by eight per cent to 49,412 from 45,814 in May 2009. The number of properties sold in England and Wales for over £1 million increased by 67 per cent between May 2009 and May 2010, from 255 to 426.

www.landregistry.gov.uk

NATIONAL: MORTGAGE LENDING DROPPED IN JULY

Mortgage lending dived sharply in July as activity in the housing market remained subdued, figures from the Bank of England have shown.

Net lending, which strips out redemptions and repayments, totalled just £86 million during the month - a steep fall from June's £518m. The figure was the second lowest since the Bank's records began in 1993, although there have also been two months when net lending was negative.

The number of mortgages approved for house purchase edged ahead only slightly during the month, rising to 48,722, well down on the levels of more than 100,000 a month seen during the housing boom. The figure was also down on November's recent high of just over 59,000, as the housing market failed to benefit from its traditional summer bounce.

The subdued lending figures have added to concerns among economists that the housing market is heading for a fresh round of price falls.

There was a slight increase in the number of people remortgaging during July, with approvals for those switching to a new deal reaching 26,951, slightly up on the previous six-month average, but there was a small dip in those unlocking equity from their home or taking out a buy-to-let mortgage.

Unsecured borrowing also remained subdued during July, with net lending rising by £173 million. Within the total credit card borrowing rose by £213 million, but lending through loans and overdrafts contracted by £41 million.

www.bankofengland.co.uk

NATIONAL: JUST A MINUTE - MARTIN WIERZBICKI, HEAD OF CONSULTANCY, RMG LIMITED

Name: Martin Wierzbicki
Position: Head of Consultancy at RMG Ltd

How did you get started in the industry? I messed about for a while after University, so decided to go to New York as I was obsessed with Any Warhol and the Factory, Martin Scorsese, Woody Allen and everything from the Big Apple. After a year or so, I came back without a dime/penny and found myself squatting in Harlesden. My friend told me of a casual job going at Westminster City Council’s HB Dept. I spent the next 6 months filing before moving onwards and upwards. I’ve done my fair share of filing for now thank-you.

Biggest professional achievement: RMG manages Westminster City Council’s Housing Options Service. I was the Service Manager for 5 years. In that time, we managed to reduce homelessness acceptances by two thirds, mainly through better prevention and opening up the private sector housing market as an option. We also developed a range of complimentary services for homeless people, such as employment and training schemes, health and support services and even taking children to the zoo ! It’s a shame all that is now under threat because of budget cuts…. You know the story.

Biggest mistake: All my mistakes are great learning experiences ! I’m please to say I don’t have any mistakes that I regret.

Best advice you received: What doesn’t kill you makes you stronger. I’m still alive.

What do you like most about your job? Working for a private sector company, but contracting to Local Authorities, means you get the satisfaction of serving the public, but without a lot of the organisational baggage. I can stay flexible and able to change my approach from day to day!

And least? When I’m not working within a cycle ride from home.

What you would most like to change in housing? Scrap Part VI Housing Act 1996. Let councils allocate their housing to who they want. That’s localism.

What future issues do you see arising in housing? Councils will (already are) looking at the cost effectiveness of their ALMOs. Rather than taking back the housing management function in-house (what a pain!), why not hand it over to the private sector? True cost-effective arms-length management arrangements in my opinion.

Do you read a daily newspaper? My local café has the Independent every day. But my favourite read is the Saturday Guardian.

How are you making use of the internet? I’m not a social networker; but the internet has completely replaced the bank, post-office and any other place I have to stand in queues.

Hobbies and interests: Badminton, arctic dog-trekking, anything Spanish…and Social housing of course.

Favourite holiday destination: Spain. And the arctic, being pulled around by 6 huskies.

Favourite Music / Bands: Reggae and jazz. No need for anything else.

www.rmgltd.co.uk

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NATIONAL: UK ECONOMY BOOSTED BY CONSTRUCTION FIGURES

The UK economy expanded faster than previously estimated in the second quarter in the biggest growth spurt since 2001 as companies rebuilt stocks and construction work surged.

Gross domestic product rose 1.2% from the previous three months, the Office for National Statistics said. That was higher than the 1.1% initial estimate, which was the median forecast of 25 economists in a Bloomberg News survey. On the year, the economy expanded 1.7%.

Britain’s growth pickup may deepen the divide among policy makers as the Bank of England considers whether the economy faces a greater threat from inflation or needs more stimulus to avert a further recession. The pound declined after the report, which showed slower services growth than previously estimated and a drop in fixed investment.

The pound fell against the dollar after the data were published and was down 0.2% at $1.5490 as of 2:39 p.m. in London. The yield on the two-year government bond slipped 3 basis points to 0.62%.

www.statistics.gov.uk

NATIONAL: BALLS CALLS FOR 100,000 NEW AFFORDABLE HOMES

An extra 100,000 affordable homes should be built at a cost of £6bn to address Britain's housing crisis and to help create jobs as the country undergoes a fragile economic recovery, Labour leadership candidate, Ed Balls has said.

The shadow schools secretary hopes to rally his campaign by calling on the coalition government to spend a recent windfall in the public finances on affordable housing.

Balls, who will unveil his plan at his first campaign appearance with his wife Yvette Cooper, says the coalition should fund the extra homes after recent Treasury figures showed that Britain borrowed £155bn in 2009-10 – £12bn less than the amount forecast by Alistair Darling in his March budget.

In an article for the LabourList website, he said: "The public finances are around £12bn healthier than forecast at the time of the budget. The coalition government wants to use the extra money to pay down the deficit faster.

"I think that at a time when the economy is still so fragile and other countries are already tipping back into recession, we should instead use that money to boost construction jobs and build new homes.

“By using half of that £12bn, a £6bn investment this year and next, we could build 100,000 extra affordable homes which it's been estimated would create up to 750,000 new jobs, directly in the construction industry and indirectly in the supply chain including thousands of apprenticeships for young people."

www.labourlist.org

NATIONAL: T CLARKE PROFITS DROP

Electrical engineering and contracting company, T Clarke dropped after reporting lower half year revenues and profits.

Pre-tax profit fell to £3.2m in the six month ended 30 June compared with £4m last time. Revenue also came in slightly lower at £85.7m compared with £93.2m previously.

Chief executive, Mark Lawrence, said: “All of us within the business are focused on securing revenues with acceptable levels for 2011 and beyond, but we must remain vigilant both in terms of risk and opportunities.”

www.tclarke.co.uk

NATIONAL: NO HOPE OF MEETING AFFORDABLE HOME BUILDING TARGETS, SAY HOUSING CHIEFS

Plans to build more affordable homes in the UK are under threat, with those in the sector unable to see a way forward to deliver new homes in the face of budget cutbacks, according to a new survey by the housing, regeneration and development consultancy, DouglasWood.

The survey of senior directors in housing associations, housing departments of local authorities, ALMOs and registered social landlords, shows a sector in turmoil fearful of its ability to provide much needed new homes and contemplating radical new ways of working.

The sector is gloomy in its predictions for the impact of public spending cuts on its ability to deliver housing, regeneration and asset management programmes. 79% anticipate being unable to meet targets for building affordable housing and 77% fear they will have to slash non core services.

The biggest threat cited was a risk of further cuts to subsidies and grants, seen as a serious issue by 70% of respondents. For 69% budget reduction was the biggest issue keeping them awake at night, followed by a shortage of staff with the right skills, cited by 45% of housing chiefs as a serious issue.

In total, 73% also revealed their expectation of cutting jobs within their organisations to make ends meet over the next two years and 26% in the private sector anticipate making pay cuts similar to those announced for the public sector in the last Budget.

Faced with a radically changed economic and political landscape, many senior housing executives are unsure how to respond with many of the view that they do not have the right structures or resources in place to cope with the new environment.

Over a third (36%) feel their organisation does not have appropriate delivery models to meet regeneration, asset management and decent homes objectives and 49% are concerned they will no longer be able to use essential consultants or interim mangers needed to deliver programmes.

Steve Douglas, Senior Director at DouglasWood, said: “Now is the time for everyone involved in the provision of affordable homes to be innovative and think laterally about finding a path through this maze. Local Authorities and others can be doing things now such as exploring new economic delivery models, pre-clearing sites, organising masterplans and putting planning permissions in place, in order to maintain momentum in undoubtedly tight times.”

douglaswoodllp.com

NATIONAL: PROJECTS FROM EGYPT AND SWEDEN CLAIM WORLD HABITAT AWARDS

The World Habitat Awards, the annual competition organised by the UK housing charity, the Building and Social Housing Foundation in collaboration with the United Nations, has announced its two winners.

The two winners of the 2010 World Habitat Awards are Ekostaden Augustenborg, Sweden; and Local Housing Movement Programme, Egypt.

Established in 1985 by BSHF and conducted in collaboration with the United Nations Human Settlements Programme, the World Habitat Awards is a respected annual international competition that seeks to highlight practical, innovative and sustainable solutions to housing problems from all parts of the world.

Diane Diacon, director of BSHF, said: “We are delighted that these two high calibre projects have won this year’s World Habitat Awards. There is so much that can be learned from both projects and implemented elsewhere. For instance, Ekostaden Augustenborg is a fantastic example to the UK of the benefits of community focussed urban redevelopment that combines environmental, physical, economic and social regeneration.”

Ekostaden (‘Eco-neighbourhood’) is an extensive urban renovation project in Malmö’s Augustenborg District. Notable activities in the Ekostaden Augustenborg project include:

High levels of active community involvement throughout the project

Improved energy efficiency and lower energy bills for residents in 1,600 apartments

High levels of recycling with 70 per cent of all neighbourhood waste currently being recycled

Successful flood management using open stormwater management and green roof systems.

Over the 12 years since the project started, Augustenborg has become an attractive, multicultural neighbourhood in which the turnover of tenancies has decreased by almost 50 per cent and previously common environmental problems such as flooding and energy inefficiency have decreased significantly.

The other Award winner is the Local Housing Movement Programme, which empowers very low-income communities in north-central Egypt to improve their housing and access to water and sanitation.

The project’s activities include the provision of micro-loans and advocacy. The organisation coordinating the project, Better Life Association for Comprehensive Development, believes that its approach is suitable for adaptation and utilisation in all developing countries.

Representatives from both projects will each receive a trophy and £10,000 at a special ceremony during the United Nations global celebration of World Habitat Day, which this year is due to take place in Shanghai, China on Monday 4 October.

www.worldhabitatawards.org