NHBC private sector registrations up 7% - June - Aug

Encouraging news from the NHBC as private sector registrations rose 7% during the June to August quarter, according to NHBC’s latest statistics.

During the period, 30,738 new homes were registered in the private sector compared to 28,660 over the same timeframe in 2017. Meanwhile, those for the affordable sector grew 23% to 11,809.

NHBC said that in London, “a considerable increase in the number of private rental sector developments and large housing association projects” during the period helped drive a 145% increase in registrations against the same quarter in 2017.

Total registrations for the rolling quarter rose 11% to 42,547 new homes.

In August, the number of new homes registered increased 1% to 13,713 year-on-year. Private sector registrations were slightly down during the month, slipping to 10,588 new homes against August 2017’s 10,738. Those for the affordable sector were up from 2,801 in 2017 to 3,125.

NHBC’s chief executive Steve Wood said: “We continue to see strong numbers in many parts of the UK with a substantial uplift in London, driven by increased activity by housing associations and the continued flow of inward investment on for-sale and private rental developments.

“The continuing uncertainties around Brexit and the UK’s economic outlook do not seem sufficient to dent confidence in the new homes market, where NHBC’s focus remains on helping developers to build more, high-quality homes for people across the country.”

New Home registrations highest since 2007 says NHBC

Good news from the Housebuilding industry as it was announced that annual registrations last year were the highest since 2007, according to NHBC’s latest figures.

The number of new homes registered to be built in 2017 increased 6% against 2016 to 160,606 homes, NHBC said. Of these, 118,825 were for private new homes, up 3%. Registrations for the affordable sector grew 14% to 41,781, the increase driven by a rise in registrations in the private rented sector. These figures are included in the affordable housing data, NHBC said.

Meanwhile, in 2017 new home completions lifted 4% to 147,278 homes against 2016.

Nine out of 12 UK regions saw increases in registrations, with the East Midlands (+19%; 14,481), Wales (+19%; 5,470) and the North West (+12%; 16,947) seeing some of the highest growth.

London, a region struggling in recent years, experienced a slight annual rise in registrations, up 1% to 17,850 on 2016.

Steve Wood, NHBC’s CEO, said: “2017 was an interesting year, politically, economically and socially.

“Our figures show the market has delivered strong growth resulting in the highest new home figures for a decade and growth across the majority of the UK, including London for the first time since 2014.

“Looking ahead, NHBC will continue to work with the industry to help raise the standards of new homes.  With 6% growth in the quantity of new home registrations, the focus on delivering quality for consumers remains critical.”

Photo via Shutterstock 

More good news from the Housebuilding sector

The housebuilding continues to bring the building industry positive news, after Wimpey reported a strong second half to 2017 last week, McCarthy & Stone, Bovis, Crest Nicholson and Barratt Developments all issued positive statements to the City. A strong housebuilding sector is good for all involved, manufacturers, distributors, merchants, developers, architects, contractors and builders

McCarthy & Stone announced its financial results for the full year ending August 31 2017, which show record revenues for the firm up 4% to £661 million although total legal completions at 2,302 were similar to last year (2,296). Underlying profit before tax was £94.1 million (FY16: £105.0 million). The firm said that the results were in line with market expectations.

The results reveal a “strong” forward order book at November 10 2017 of £277 million (November 11 2016: £250 million) with workflow on track to support the firm’s growth strategy and deliver around 80 new sales releases in 2018, up on the 52 in 2017.

McCarthy & Stone CEO Clive Fenton said: “We achieved a strong result in the second half of the year and delivered an improvement in both margins and volumes compared to the first half of FY17. Our full year completion volumes were in line with the prior year despite some headwinds as a result of the increased level of uncertainty in the secondary market and the expected lower number of first occupations.  We delivered to market 49 high-quality new developments and maintained our exceptional build quality and levels of customer satisfaction. 

“The group starts the new financial year with a strong forward order book and a robust balance sheet.  We have sufficient land under control, much of which already has detailed planning consent, to deliver our strategic growth plan of building and selling more than 3,000 units per annum.”

McCarthy & Stone has been exploring additional revenue streams to diversify its business model including a strategic relationship with Places for People (PfP Capital) to supply homes for rent – the firms says 17% of older people have indicated that they would rather rent than buy, equivalent to around 2 million people.

The firm has also been piloting a new scheme to build bungalows as an alternative product for retirees.

Bovis, meanwhile, in a trading update says it is making encouraging progress towards its medium term targets “with continued improvement in customer satisfaction and excellent progress in optimising the balance sheet and bringing additional cash into the business,” according to group ceo Greg Fitzgerald. “We expect to have a net cash position of at least £100 million as at 31 December 2017.  Trading is in line with expectations, the market remains strong, and we are on track to deliver another disciplined period end."

Bovis is fully sold for its targeted FY 2017 completions with an average sales rate over the period of 0.52 (H1 2017: 0.48), and the firm says pricing remains “robust” and it expects to deliver an increase in the average selling price for FY 2017, largely driven by changes in mix with a modest increase in underlying prices.

Bovis says its HBF Customer Satisfaction rating on completions since February 1 2017 has averaged 75%, equivalent to a 3-star rating and the firm remains confident in achieving its medium term target of a 4-star rating.

Crest Nicholson has continued to grow overall housing volumes this year, issuing an update on its financial year ending October 31 2017, Crest’s overall housing unit completions in 2017 rose 2.3% to 2,935 homes against 2016.

Its open market average selling prices improved 5.4% to £391,000, which Crest said tallied with its “well established strategy to position the business at around this pricing level”.

Underlying sales rates for 2017, excluding PRS, averaged 0.77 sales per outlet per week against 2016’s 0.81, reflecting the increase in Crest’s average selling price and to a degree, Crest said, the softer central London market. Its average number of sales outlets increased 8.5% to 51.

As of the end of October, Crest’s total forward sales were 13.6% ahead of 2016 at £391.4 million.

Crest said the housing market was “generally robust” across the group’s operating areas, but transactions in central London were “suffering from some volume and price weakness”.

It added that “whilst there may be some impact” from ongoing economic and political uncertainty, the fundamentals of the new build housing market remained strong.

The housebuilder expects growth in revenues across all tenures and reported sales for the year to be around 6-7% higher than 2016.

Stephen Stone, Crest’s CEO, said: “I am pleased to report yet another year of growth for the group.  The business continues to increase the number of homes built and carries positive momentum into 2018 with strong forward sales.”

Barratt, covering the period from July 1 to November 12 2017, said the robust demand across its regions was reflected in its net private reservations per average week of 268, against the 265 of the equivalent period in 2016.

The volume housebuilder launched 79 new developments during the period (2016: 69), operating from an average of 373 active outlets compared to 2016’s 370.

Total forward sales as of November 12 2017 grew 8.4% to a value of £2,876.0 million, equating to 12,843 plots (November 13 2016: 11,733 plots).

David Thomas, Barratt’s CEO, said: “We have started the financial year strongly with a good sales rate, driven by customer demand for new homes, and supported by an attractive lending environment. We remain committed to quality, build excellence and market leading customer service and are working hard to increase the supply of houses across the UK.” 


Photo via Shutterstock

Taylor Wimpey reports “strong” second half

There is still lots of good news to be found in the building and construction industry, despite concerns about the future, this has been shown by the promising news announced this week that Taylor Wimpey performed “strongly” during the second half of 2017

The volume housebuilder said that sales rates for the second half of the year to date were 0.71 sales per outlet per week against the 0.70 achieved in the equivalent period last year. Over the past eight weeks, the sales rate has been 0.73, in line with the same point in 2016.

At the same time, its current total order book is slightly down on last year, at 8,751 homes (2016: 8,981), standing at around £2.2 billion against 2016’s £2.3 billion.

Taylor Wimpey also said it expected a “modest cash impact” in 2017 from addressing leasehold issues, with the majority of the outflow to be spread over approximately the next two years. It made a provision in its first half accounts, before tax, of £130 million for dealing with leasehold matters. Today it said it had reached agreements with freeholders allowing the “substantial majority” of its customers with a ten-year doubling lease to convert ground rent terms to a structure based on the retail price index (RPI).

The business added that it was set to deliver FY 2017 results according to expectations, with further growth and performance improvement anticipated in 2018. At the same time, it remained “alert to the potential risks from heightened political and economic uncertainty”.

Pete Redfern, Taylor Wimpey’s ceo, said: “Taylor Wimpey has performed strongly during the second half of 2017, delivering excellent sales rates and making further good progress against our operational targets. While we are alert to potential political and economic risks, demand for new housing remains high across the UK and market conditions are favourable.

“Notwithstanding the recent small increase in the base rate, we have continued to see stability in trading patterns.”

NHBC announce that registrations reach highest third quarter in a decade

More really positive news for the building industry last week as the NHBC announced that new home registrations saw their highest third quarter total for a decade.

During the July to September period, (Q3 2017) 37,936 new homes were registered, a 6% increase on the same period last year. Of these 29,083 were for the private sector, a 9% increase on Q3 2016.

Meanwhile in the affordable sector, registrations dropped 5% to 8,853 new homes.

NHBC said that seven out of 12 UK regions saw registration growth during Q3 2017 against 2016. Among those with the most significant growth were Scotland which experienced a 50% rise to 3,056 new homes registered, the East Midlands at 42% growth to 3,575, and the North East, seeing registrations improve 34% to 2,078.

But Greater London’s registrations dropped from 3,860 in Q3 2016 to 2,494 during the July to September period this year.

NHBC’s ceo Steve Wood, said: “We have seen encouraging growth in terms of the number of new homes being registered over the last three months, across many parts of the country.

“With demand for high quality new homes as strong as ever, this is positive news for the industry and prospective homebuyers, particularly in light of the current political and economic uncertainties.”

Photograph via Shutterstock: shutterstock_163820348

Spotlight on the housing industry is set to intensify

The spotlight on the housing industry is set to intensify with the government reiterating its commitment to housing as a key priority, Stewart Baseley, HBF’s executive chairman said at last weeks' Housebuilder’s Housing Market Intelligence conference.
Baseley highlighted the Prime Minister Theresa May’s willingness to stake her legacy on fixing the housing market, as stated in her conference speech yesterday.

“If you thought the heat on the industry was hot, it’s going to get even hotter,” he said.

Baseley also talked through the myriad challenges that the industry faces, including quality and leasehold issues, skills and the decline of SME housebuilders. “If we could get back to 2007 levels of SME numbers, that would produce 25,000 more homes,” he said.

He also defended the Help to Buy scheme, to which the government has pledged an extra £10 billion. “I firmly believe it has done exactly what it set out to achieve,” he said, pointing out that the scheme was launched as a result of lenders being required by regulation to insist on deposits for homes of 20%. 

Also speaking at the conference, Nick Walkley, ceo of the Homes and Communities Agency, outlined the key roles of the new Homes England which will launch at the end of this month.

“These are opportune but challenging times,” Walkley said. “It’s about identifying where the opportunities are, flexing the tools we have and making the case for new tools.

“Creating Homes England gives us a chance to review our relationships to tackle the broken housing market.”

Housing starts in England are their highest for 9 years!

After the good news we brought you last week about the growth in the builders' merchant market, all at Pinnacle Consulting were delighted to hear that the building industry has been given another much needed boost.

Housing starts in England have reached their highest level since 2008, according to the latest government figures released.

In the year to June 2017, 164,960 new build homes were started, a 13% increase year-on-year. Meanwhile, completions rose 11% to 153,330.

Private starts climbed 16% during the period to 139,140, whilst those for housing associations dipped 2% to 24,220.

And private completions during the year to June 2017 lifted 12% year-on-year to 125,550. Housing association completions rose 6% to 26,170.

Quarterly figures show some decline, with overall new build starts (seasonally adjusted) dropping 3% to 41,180 during the June 2017 quarter against the March 2017 quarter. But June quarter completions, at 40,310, were 2% higher.

Seasonally adjusted private starts quarter-on-quarter were stable at 35,570 (0% change), with starts for housing associations decreasing 19% to 5,280.

And private quarterly completions (seasonally adjusted) also remained the same at 32,730, with those for housing associations climbing 17% to 7,200.

Murray Smith,MD of residential property sales and development consultancy SiteSales Property Group, said: “The statistics reflect what we knew, in that completions on projects commenced pre- Brexit would be healthy, while the post-vote hiatus in the industry and an uncertain market has withheld starts in recent quarters.”

Housing and planning minister Alok Sharma said: “It’s vital we maintain this momentum to deliver more quality homes in the places that people want to live. Our housing white paper set out an ambitious package of long-term reforms to do just that.”

House-building at its highest for a decade in England

The Department of Communities and Local Government (DCLG) has revealed that the number of new build dwellings started in England in the year to March 2017 stood at 162,880, a 15% increase on the same period a year ago.  Private starts were up 18% year on year and housing association starts up 1%, according to new government statistics.

The annual total is the highest since 2007, 152% above the trough in the March quarter of 2009. However starts are still 12% below their March quarter 2007 peak.

In the first three months of this year, seasonally adjusted starts stood at 43,170, up 21% on the same quarter last year and up 3% on the last quarter. Of these 36,470 were private starts – 22% up year on year.

The figures also show that 147,960 new build dwellings were completed in the year to March 2017, which is 6% higher than in the year to March 2016. Private enterprise new build dwelling completions were 9% higher than the previous year, whilst completions by housing associations decreased by 5% on an annual basis. 

The number of new homes being built in England is at its highest level for ten years, according to government figures.

New report reveals the challenges faced by small house builders

New research from the National House Building Council Foundation says that some small house builders are being hindered by delays and rising costs in the planning system and this is causing some to leave the industry.

The report - Small house builders and developers: current challenges to growth – shows that a third of small builders wait more than a year for local authority planning approval, whilst nearly 80% have endured a significant rise in planning-related fees over the past two years.

Information has come from almost 500 companies who typically build less than ten homes a year, the NHBC Foundation has revealed the conditions that small house builders face. Another sizeable barrier is the lack of viable land; 37% of respondents cite a shortage of available land at a suitable price as their most serious obstacle to growth.

Finance availability is a significant concern for 20% of respondents, although the NHBC Foundation said that this issue “has improved in the last two years, with more small builders obtaining finance from banks or private sources.”

Encouragingly, the report also finds that 58% of small builders are optimistic about the future of the industry.

In the report, the NHBC Foundation makes a number of recommendations for the government and the industry to address the hurdles small house builders face and help bolster this part of the sector. These include a call for the government to speed up decision making in the planning system, reduce inconsistencies and provide a clear tariff system; and increase the availability of smaller sites suitable for schemes of up to ten homes.

Neil Smith, NHBC’s head of research and innovation, said: “The increasing complexity, time taken to achieve a decision, and the unpredictability and inconsistency within the planning process are slowing the delivery of new homes and, in some cases, causing companies to leave this market.”

"Reduce barriers to help smaller housebuilders grow" says Home Builders Federation

The Home Builders Federation (HBF) has recommended the government should seize the opportunity of Brexit to reform EU regulation to reduce the risk and complexity associated with building new homes and so help smaller builders build more.

This is one of a series of recommendations revealed in a new report released by the HHBF which highlights the challenges faced by small to medium sized (SME) housebuilders in looking to increase housing output.

The report – “Reversing the decline of small housebuilders” - sets out a range of proposals to address the finance, planning and red tape barriers preventing smaller firms from playing a bigger part in tackling the housing crisis. Over the past 25 years the number of SME builders has reduced by around 80%, but HBF says that just getting back to the number operating in 2007 could produce an additional 25,000 homes a year.

The problems are highlighted in the report by Redrow founder Steve Morgan. He grew a fledgling business into a national publicly listed builder but he says this “would be almost inconceivable today”.

The report is based on in-depth interviews and discussions with HBF’s smaller members and highlights access to finance and the increasingly complex planning and regulatory systems as the biggest factors inhibiting the entrepreneurialism of smaller companies.

The report reveals that lending has improved little since the recovery from the 2008 financial crash and that planning is a risky and expensive process which hampers SMEs without the infrastructure and financial ability to navigate them.

HBF points out that housing supply has increased significantly in the past three years but that most of this increase has come from the largest builders. “With government keen to see numbers continuing to increase, enabling SMEs to increase output will be key,” says HBF.

In addition to reforming EU regulation the report suggests a number of other steps government could take to help including:

• Create a new Help to Build scheme to help extend sustainable lending to smaller companies
• Tackle specific planning problems that disproportionately affect the business environment for SMEs, including the lack of smaller sites and the impact of pre-commencement conditions
• Lift barriers for builders to access tax incentives and other support enjoyed by SMEs in other sectors
• Provide technical and planning advice services for fledgling businesses

Stewart Baseley, executive chairman of the Home Builders Federation, said: “Whilst housing output has increased significantly in recent years, the vast majority of the increases have come from larger companies. The number of smaller builders has collapsed over recent decades with few new entrants to the market able to grow to any size.

“If government wants to see continued increases in supply it is imperative it enables SME builders to play their part. Removing the barriers for SME builders could result in tens of thousands of desperately needed additional homes being built and boost economies up and down the country.”

Have you launched an innovative new product for the house building market in the last 12-months?

The Housebuilder Product Awards 2017 are now open for entries. The awards reward excellence and innovation for products and systems which aid new home development in the UK. 

So if you're a building product manufacturer and you've developed or enhanced an innovative product in the last 12 months, why not tell everyone of its success and remind the industry of its benefits and why it has made a difference to the house building industry. 

We know from speaking with many of our clients that 2016 was a very good year for new product launches, especially ones that have made life easier for builders during installation and construction, or enhanced safety on site, many have also had huge cost-saving advantages for the homeowner with benefits for the environment too. This along with the recent news from the HBF that larger homes are now being built than ever before underline the importance for manufacturers to continue to innovate and then let the industry know!

Enter the Housebuilder Product Awards 2017 >>

In their fifth year, these Awards were sucessfully launched in 2013 by Housebuilder Media to reward excellence in the products and systems used in UK housebuilding.

The Housebuilder Product Awards are supported by the HBF and NHBC, with judges from organisations including CPA, BBA, Robust Details and leading housebuilders.

Winning a Housebuilder Product Award could give you or your client an edge in a market that is ever more competitive and will generate invaluable publicity and exposure.  The Awards and the winners will of course be publicised in Housebuilder magazine and through our email news alerts, promoting them widely among the UK housebuilding market.

The winners in each category will also go forward to be a finalist in the Product category at our successful Housebuilder Awards in November for the chance to be crowned Product of the Year in front of an audience of more than 500 senior housebuilders and industry figures.

CATEGORIES

• Best building fabric product
• Best internal/interior product
• Best services product
• Best kitchens and bathrooms product
• Best external product
• Best site product
• Best health and safety product
• Best business product
• Best brand new product

JUDGES

• Dave Mitchell HBF
• Neil Smith NHBC
• Steve Wielebski Consultant
• Claire Curtis-Thomas BBA
• Peter L. Caplehorn Construction Products Association
• Michael Black Bovis
• John Tebbit Robust Details
• Dale Saunders Taylor Wimpey
• Darren Dancey Crest Nicholson

ENTRY DEADLINE FRIDAY 17 FEBRUARY 2017

Your entry must include the following:

• Completed entry form
• One copy of additional materials
• One electronic high res jpeg image of product
• Payment of £130 + vat
• 500 word submission (7 copies)

Entries must be posted to:

Housebuilder Product Awards

Housebuilder Media, 27 Broadwall, London, SE1 9PL

More info...>>

Housebuilders are building bigger homes and more bedrooms says HBF

New analysis from the Home Builders Federation (HBF) reveals that the housebuilding industry is building bigger homes with more bedrooms - and that the number of houses built last year was higher than that ten years ago. This is good for the the building products industry and bigger and move houses means more building products are required!

The new report called "Goodness Spacious Me", finds that the number of bedrooms built increased from 385,000 in 2008/09 to 478,000 in 2015/16.

The report says that this is largely as a result of the shift to building more family homes. Over the same period the percentage of flats built dropped from 50% of the new homes in 2008/9 to just 25%, whilst the number of houses increased from, 80,000 to 120,000. The average size of a new build homes increased by nearly 15% from an estimated 801 sq. ft. to 918 sq. ft.

HBF says that the report underlines how housing supply has rebounded since the financial crash of 2008/09 that saw many housebuilders disappear and others shedding up to 50% of their staff. “As a result of a more positive economic and policy environment the industry has rapidly increased the number and type of homes it has built to better match demand,” says HBF. “Indeed, whilst more dwellings were built in 2006/7, the number of houses produced last year far outstripped that of a decade ago.”

Stewart Baseley, executive chairman of the Home Builders Federation, said:

“The report illustrates the huge increase we have seen in housebuilding since the devastating economic crash of 2008/09 but this is more than just a numbers game. We have an acute housing crisis that can only be solved by building more of the right homes in the right places. Government policy has allowed the industry to focus on responding to the needs of buyers in this regard and, as a result, the industry has delivered huge increases in supply over the last three years. The industry is planning to deliver further increases in output. By addressing the entrenched problems with planning and developing further positive policies to promote development the government can help maintain this momentum.”

Photo via Shutterstock.com

As the Brexit dust settles the property market begins to move again

New research issued by the Royal Institution of Chartered Surveyors (RICS) has shown an upturn in the UK residential property market following the EU referendum.

In the latest RICS UK Residential Market Survey, the UK housing market showed a rise in confidence, following a significant drop in activity and price expectations in the wake of the EU vote. Based on its survey, RICS has predicted that UK house prices and sales will rise over the next three and 12 months as activity in the market stabilises.

The headline price indicator edged higher during August, with a net balance of +12% of respondents reporting an increase in prices (up from +5% previously). This halts a run of five consecutive reports in which the net balance had softened, although the current reading is still the second weakest posted over the past eighteen months. In London, the net balance remained negative for a sixth consecutive month, with 30% more respondents noting a fall in prices, as opposed a rise. By way of contrast, the net balance figures suggest prices increased in most other parts of the UK.

Looking ahead, national near term price expectations climbed into positive territory for the first time since April, with a net balance of 10% of respondents now anticipating prices will rise over the coming three months. Nevertheless, expectations remain generally modest across the UK. Contributors are projecting prices in the North East to slip a little further in the near term but London expectations have now stabilised. Further out, over the next twelve months, prices in the capital are projected to see little change, while all other parts of the UK are expected to see house prices drift higher.

The real shortage of property for sale remains an overriding feature of the market and also a key factor supporting prices. This looks set to persist for a while yet as new instructions to sell declined once again during August, albeit only marginally. As a result, average stock levels on estate agents books slipped for the third successive month and now stand within a whisker of the record low posted in December of last year.

Alongside this, new buyer demand decreased slightly at the national level, although the pace of decline eased significantly, with a net balance of -7% more contributors reporting a fall in demand (up from -25% in July).

In an extra question included in this month’s survey, contributors were asked for a more detailed breakdown of changes in new buyer enquiries over the past three months - looking at trends across different categories of buyers. The results show enquiries from buy-to-let investors dropped most sharply with a balance of -57% more respondents citing a decline. Over the same period, demand from first time buyers and existing owners also reportedly fell, but to a smaller degree, returning balances of -15% and -11% respectively.

Following a couple of months in which sales declined sharply in the aftermath of the referendum, volumes stabilised during August, as the agreed sales indicator improved to zero from -32% last time. That said, sales still appear to be falling in parts of the country, London and the West Midlands in particular, but the pace of decline has slowed in each case. Going forward, the sales expectations series (three months ahead) improved noticeably, posting the strongest reading since February. Furthermore, at the twelve month horizon, sales projections have now climbed out of negative territory across all areas of the UK.

In the lettings market, demand from tenants increased at the headline level (non-seasonally adjusted figures), with growth gathering pace relative to the three months to July. At the same time, landlord instructions continued to fall modestly, and this supply/demand mismatch is expected to squeeze rents higher during the year ahead. This is generally the case across the whole of the UK, although London is a slight exception, where respondents envisage virtually no rental growth over the coming twelve months.

Interestingly, a net balance of 12% more respondents feel landlords are more likely to decrease (rather than increase) the size of their portfolio over the next twelve months. Stamp Duty changes and scheduled cuts to mortgage interest tax relief are both seen as important factors diminishing the attractiveness of buy-to-let as an investment. Contributors also sense that landlords are unlikely to expand their residential lettings portfolios over the next five years, but will keep them broadly unchanged.

Simon Rubinsohn, RICS chief economist, said:

“There are clear signs that the housing market is settling down after the initial surprise of the outcome to the EU referendum. Buyer enquiries did dip again in August, but only modestly and, more significantly, sales expectations are beginning to edge upwards once again. It is likely the swift response from the Bank of England, both in terms of the lowering of the capital buffer and the cut in interest rates, has played a role in helping to support confidence.

“The more assured mood is also reflected in some of the longer-term RICS indicators, although this in itself could serve to reignite ongoing concerns surrounding affordability with five-year projections for both prices and rents in the latest survey back to their highest level since May.”

Housebuilding figures continue to grow but momentum must be maintained say NHBC

October saw the highest number of new home registrations recorded in a month since 2011, according to figures released by NHBC.

A total of 13,950 new homes were registered over the month - 11,151 for the private sector and 2,799 for public housing. The last high point during a month was in June 2011 when 14,565 homes were registered. October's figures were also a 10% improvement on October 2013, NHBC said.

NHBC commented that the figures were in part strengthened by the registration of 539 new units during the third phase of the Battersea Power station project.

Growth in the quarter of August to October - at 14% against the same period last year - was led by the private sector, where registrations grew 20% to 29,341. Public sector registrations dipped 7% to 7,799. In total, 37,140 new homes were registered during the three month period.

NHBC's CEO Mike Quinton said: "The October figures show that the UK housebuilding industry is continuing to build on the strong new housing volumes seen in 2013. All the signs are that 2014 will be another encouraging year with growth being registered across all parts of the UK.

"While this is obviously positive news, we know that the industry is working from a historically low base so there is still much work to do to ensure this momentum continues."

www.pinnacleconsulting.co.uk sales and marketing recruitment for the building products sector

Latest housing stats released by DCLG/HCA

The latest housebuilding statistics released by the government reveal a mixed set of results, but generally the figures show how far the sector has come in the last 12 months.

Private starts in England reached 27,300 in the three months to September 2014, this is 4.6% up on the same quarter in 2013.

But the figures from the Department for Communities and Local Government (DCLG) revealed that against the previous quarter (April to June 2014) private starts dropped 8%.

In total, private and public, 33,000 homes were started in the September quarter, a 10% drop on the previous quarter.

Private completions in the September quarter increased 9.6% to 24,280 against the same quarter last year. Compared to the previous quarter of this year, they climbed 3%.

Annual private starts in the 12 months to September 2014 climbed 19% to 112,270 compared to the 12 months to September 2013. And annual private sector completions increased 8% to 93,000.

Overall annual housing starts in the 12 months to September 2014 rose 16% to 138,640 against the previous 12 months.

The Homes and Communities Agency also released its latest housing statistics. During the first six months of its financial year (April 1 – September 30), the HCA saw a 26% rise in market home starts to 3,229 against the same period last year. The number of market homes completed increased 41% to 3,545.

If you're interested in a sales job in the building products industry, find out more here.

Construction Products Association forecasts private housing to grow 18% in 2014

The Construction Products Association's Summer Forecasts released this week have revealed that private housing starts are set to increase by 18% this year to 134,170 units. This is great news for the housebuilding industry and manufacturers, distributors and merchants of building products.

The Construction Products Association (CPA) also said that over the next two years the whole construction industry is set to grow by approximately 10% and contribute almost £11 billion to the UK economy. 

The private housing sector is expected to grow 10% in 2015 followed by 5% growth every year to 2018.

Noble Francis, CPA’s economics director, explained the slower growth expected after 2015: “The pending general election will cast the future of housing policies into doubt. Such uncertainty, together with questions about affordability and higher mortgage repayment costs, will likely subdue private housing growth to 5% per year from 2016.”

It is a good time to be involved in the construction industry and it is leading the way in the recovery of the UK's economy.

If you are looking for a new sales job in the construction and building products industry, please contact us on 01480 405225.

NHBC is the latest in the building industry to have a significant recruitment drive

To underline the increase in production of new houses and the real urgency for these projects to be completed as quickly as possible, the need to have both quality and quantity in staff and workers throughout all areas of the industry is a primary concern. The NHBC has acted to try and address this issue.

We are already aware of the lack of contractors available in the industry and also the fact that many manufacturers of building products cannot produce the supply to meet the demand. There has also been a noticeable increase in more jobs for construction and building products sales professionals, as companies look to recruit to exploit the upturn in the market. And now we learn that the NHBC (National Housebuilders Council) has launched its biggest recruitment campaign in 30 years.

The UK warranty and insurance provider for new homes will create more than 100 frontline technical jobs to help support housebuilders as they increase volumes in response to the improving market.

The recruitment drive will see NHBC recruit 80 new building inspectors and create new management roles, as well as take on more surveyors, engineers and special project managers.

NHBC will also assemble a Mobile Quality team for housebuilders who need extra inspection assistance. The team will cover areas of high demand and those with more complex projects.

“As production ramps up across the country, the industry is faced with a new set of challenges,” said NHBC’s operations director Ian Davis. “Builders up and down the country have told NHBC what they need to move forward and we have responded by launching one of the biggest recruitment drives in our history.

“By upscaling our technical and inspection services we will be able to provide extra support to the industry and builder customers at this crucial time.”

It is encouraging news that companies and organisations are realising the market is in sustained growth and it must not be allowed to collapse for reasons which are controllable.  

If you are a manufacturer or supplier of building products looking to recruit for sales or marketing staff, contact Pinnacle Consulting, specialist in recruitment for the sector. Call 01480 405225 or visit www.pinnacleconsulting.co.uk

New housing starts are at their best since 2007

New housing starts in England increased by 23% in 2013 when compared to 2012. This is the highest level seen since 2007, according to government figures recently released -  great evidence of what we are all feeling is happening: that the housing industry is looking healthy again.

Figures show that during 2013, 122,590 new homes were started and since April 2013, private starts rose by 29% compared to the same period in 2012.

The Home Builders Federation said that the figures showed a returning confidence to the housebuilding industry, fuelled by the launch of the Help to Buy equity loan scheme last Spring.

“It is now clear, after a number of difficult years that saw housing supply levels drop to a record low, that housebuilding is now increasing significantly,” said HBF’s executive chairman Stewart Baseley.

“Help to Buy is increasing demand for new homes and the industry is responding. People’s inability to buy in recent years has been the biggest constraint on the industry’s efforts to build more homes.”

This is great news for building products manufacturers and distributors.

To look at the latest sales jobs in the building products industry click here.

Image: "Planning Home" from here http://www.freedigitalphotos.net/images/planning-home-photo-p203566

If you've launched a new and innovative house building product, why not get the reward it deserves...

Manufacturers of housebuilding products invest a lot of time, effort and money in new products or systems. Their aim is to gain competitive advantage by developing many kinds of enhanced product or system benefits e.g. easier installation, increased durability, greater energy-savings, better aesthetics, improved comfort of living, easier operation and maintenance, higher performance and monetary-savings. 

This dedication, hard work and innovation needs to be rewarded and more people should to be aware of these products and the effort which has been put into them - so if you've developed an innovative products in the last 12 months, why not enter the Housebuilder Product Awards 2014 and get the recognition and coverage you deserve?

You can now enter the Housebuilder Product Awards 2014, but the deadline is 14th February, so act quickly. There categories for most product areas of domestic housebuilding, including internal and external products.

The awards are looking to reward excellence and innovation for products and systems which aid new home development in the UK.

Awards categories

• Best Building Fabric Product 
• Best Internal/Interior Product 
• Best Services Product 
• Best Kitchens and Bathrooms Product 
• Best External Product 
• Best Site Product 
• Best Health and Safety Product 
• Best Business Product 
• Best Brand New Product

The winners in each category will be announced at a lunchtime ceremony in July.

Each winner will also be shortlisted in the Best Product Category at Housebuilder's much coveted Housebuilder Awards in November for the chance to be crowned Product of the Year. Find out more here.

If you are a manufacturer of housebuilding products looking to recruit sales, marketing or management professionals, please visit our building products recruitment website.

Shortages in building materials and products are still a major concern: how are you dealing with this issue?

The good news is that housebuilding continued its recovery at the end of 2013, as shown in the latest RICS Construction Market Survey released last week. However, a large number of those surveyed, stated that material shortages are creating a major problem, particularly materials such as, bricks and blocks. 

As we discussed, some months ago, in our article: Where are the building blocks to recovery when you need them, this seems to be an on-going issue for the housebuilding industry and still hasn't been resolved. It affects the whole industry, from the architect, developer, manufacturer, stockist, builder to the homeowner. However, it is still a welcome problem after the doom and gloom of the last few years.

We would like to hear from manufacturers and stockists to understand how you are dealing with this issue and as demand increases during 2014, if you feel supply will get better or worse and what kind of time scale is involved?

RICS survey summary
The survey revealed the private housebuillding sector saw its output increase 7.3% in the first three quarters of 2013 against 2012. 

However, the RICS also said that almost 40% of respondents stated material shortages as a concern and pinpointed bricks and concrete blocks as being in particularly short supply, as were the bricklayers to build them - 36% of respondents to its survey found labour shortages to be constraining activity in Q4 2013. Its research showed a higher percentage of respondents reporting difficulties sourcing skills than at any time since the middle of 2006. 

The outlook for 2014 is very bright with expectations for future construction activity shown to be extremely upbeat with 74 percent more chartered surveyors expecting workloads to increase rather than decrease during 2014. Furthermore, predictions for employment levels and company profits were also very positive, suggesting that the construction sector may at long last be beginning to prosper.

The RICS survey stated: “Predictions for employment levels and company profits were also very positive, suggesting that the construction sector may at long last be beginning to prosper.”

Looking to employ?
With greater levels of work for manufacturers and stockists clearly evident  to supply the housebuilders, many are looking to invest in their workforce. 

If you are a building products manufacturer or stockist looking to recruit for sales or marketing professionals, contact us on 01480 405225 or find out more about our services at www.pinnacleconsulting.co.uk. 

If you are looking for a new job, why not arrange to attend our building industry career development recruitment clinic.

When you recruit with Pinnacle Consulting, you also help one of two building and construction industry charities: CRASH or Lighthouse Club. Find out more.