INDUSTRY UPDATE VIEWPOINT
The FMB gives its viewpoint on the headlines affecting the construction sector Viewpoint
Boost in builders’ workloads
Homes for everyone, everywhere
Activity in repair, maintenance, and improvement (RMI) building work has climbed in Q2 of this year, but house building is lagging behind, according to the FMB’s State of Trade Survey Q2 2023 . Brian Berry, Chief Executive of the FMB, said: “While there are plenty of positives to take from this quarter’s State of Trade Survey , there are still worrying signs for house builders. Workloads are up, driven by a strong RMI sector. Encouragingly, we’re also seeing pressure on obtaining skilled labour easing. “The survey points towards other areas of concern, with just under half of FMB members anticipating that profits will be lower than expected and around one in five saying they are restricting their hiring of new staff. With inflation dipping marginally, we’ll need to see over the coming months if this has any positive effects on bottom lines.”
many SME house builders are stuck in planning purgatory, which stops the delivery of housing and employment opportunities in their communities. “The recommitment to ‘building beautiful’ is positive. The FMB has consistently highlighted that it is the small, local house builders that are best placed to truly deliver on this ambition. They build quality, local homes that reflect their communities’ needs which is why the Government’s
The Government’s 10 Point Housing Plan, which was announced by Secretary of State for Levelling Up, Housing and Communities Michael Gove with the aim of delivering a long- term plan for housing, is a welcome boost to build more houses. But new homes are needed everywhere – not just in cities. Brian Berry, Chief Executive of the FMB, said: “It’s positive to see a focus on brownfield sites, which are the mainstay of SME house builders, but the planning system also needs to be fixed to ensure that these developments become a reality. Too
focus on urban areas needs to be balanced with the need to address housing shortages in our rural communities.”
Industry needs more Government commitment A fall in construction activity generally and housing activity in particular as seen in S&P Global / CIPS UK Construction PMI data shows the Government needs to commit clearly to building new homes.
Brian Berry, Chief Executive of the FMB, said: “At a time when we need to be building more homes we are moving in the opposite direction and building fewer. There is a whole generation of people who can’t get on the housing ladder, which is holding back growth and investment. While it might be politically easy to shelve housing commitments to gain votes in some areas, the Government must recommit to their annual housing target of 300,000 homes. “There are long-term planning system issues to solve, but the Government needs to take the bull by the horns and restate its ambition to build new homes.”
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Master Builder
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