Master Builder Magazine: August-September 2023

INDUSTRY UPDATE VIEWPOINT

The FMB gives its viewpoint on the headlines affecting the construction sector Viewpoint

The fastest fall in house building activity since May 2020 should ring the alarm for the Government to act, said the FMB in response to data from S&P Global / CIPS UK Construction PMI. Brian Berry, Chief Executive of the FMB said: “The Government needs to recommit to building 300,000 homes every year to give hope to consumers and house builders alike that it is serious about increasing the housing supply. “What is very concerning is that the Government lacks a clear plan to solve the housing crisis, resulting in a softening housing market, increasing house prices, and more people stuck in rented accommodation. While there are plenty of complex issues holding back house building, fundamentally, we just need the Government to get to grips with delivery and allow more local house builders to deliver high-quality homes to their communities.” Government must stop fall in house building

RMI building work rebounds

building fewer and not more homes amidst this growing housing crisis is a worrying sign for consumers, builders and the Government alike.” Berry concluded: “The FMB’s survey shows the effect inflation is having on SME building companies, resulting in them having to raise their prices to stay afloat – 10% of FMB member companies are at risk of closure. We are far from having certainty in the building industry but at least there are some signs that we are starting to move in the right direction.”

Repair, maintenance, and improvement (RMI) building work has rebounded in the first three months of the year. The FMB’s State of Trade Survey shows: Workloads are up by 12% compared with Q4 2022; and Enquiries are up by 14% compared with the previous quarter. Brian Berry, Chief Executive of the FMB, said: “Whilst it’s good news for domestic building work, it is very concerning that house building is still in negative figures, despite a slight increase in reported workloads. The fact we are

Labour backs builders not blockers

The FMB welcomes the announcement by Sir Keir Starmer MP that the Labour Party will back house builders to deliver more homes as house building targets fall to record lows. Brian Berry, Chief Executive of the FMB, urged those in power to give small local house builders the opportunity to build new homes, given that they currently deliver 10% of all new homes, down from 40% around 30 years ago.

Sir Keir Starmer

Berry said: “We have not been building enough homes to address the housing crisis, resulting in overcrowding and young people unable to get on the housing ladder. The proportion of people aged 25-34 who owned a home in 1989 was 51% but now it’s just 28%. We must get back to building homes, with small, local house builders delivering high-quality homes fit for their communities.”

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