Construction News Archive
November 2001 - February 2002
 

Housing Statistics: June Quarter 2001

Housing Statistics June Quarter 2001 is a supplement to the DTLR's annual compendium of statistics on housing.

The supplement covers housing renewals, disabled facilities grants, sales and transfer of local authority dwellings, including right-to-buy, dwelling prices, mortgage and land costs, and rents. England data (April-June 2001) includes:

* Just under 40 thousand dwellings were started. This varied from 1.7 thousand in the North East to 7.1 thousand in the South East.

* Of the 31,800 dwellings completed, 28,200 (89 per cent) were built by private enterprise. The equivalent figure for registered social landlords is 3,600 (11 per cent). Relatively few dwellings have been built for local authorities in recent years.

* Nearly 11 thousand council dwellings were sold under the right-to-buy scheme. The total selling prices of dwellings for owner occupation was £331.6 million and the average discount on sales was 44 per cent.

* The average selling price of houses purchased with a mortgage continues to grow. The latest figure was just below £119,000, an increase of about 11 per cent compared with the same quarter last year. The average advance has also grown to £81,600.

Housing Statistics June Quarter 2001, compiled by DTLR statisticians, can be obtained from TSO, the Publication Centre (mail, telephone and fax orders only), PO Box 29, Norwich NR3 1GN. Telephone orders 0870 600 5522, Fax orders 0870 600 5533. ISBN: 0-11-782087 3. Price £14. Alternatively, it can be found on the DTLR website: www.housing.dtlr.gov.uk/research/hss/q22001/index.htm


FIRST CONSTRUCTION ECONOMIC INDICATOR OF THE MONTH

Construction PMI hits four-month high in January, but employment growth is the weakest for almost three years.

The UK construction sector expanded at the fastest rate for four months in January, according to the latest CIPS survey. The Construction Purchasing Managersí Index (PMI) - a seasonally-adjusted indicator designed to provide a single figure snap-shot of construction activity - recorded 54.0 in January, up from 52.9 the previous month, remaining above the critical no change mark of 50.0 that divides contraction and expansion for the thirty-sixth consecutive month.

Roy Ayliffe, Director of Professional Practice at the Chartered Institute of Purchasing and Supply, said: 'Purchasing Managers countered rising input prices caused by using existing stocks where possible throughout January. Nevertheless, the sheer volume of incoming new business increased Purchasing Managers' activity.'

Expansion of activity continued to be recorded by all three broad categories of construction activity covered by this survey in January. The strongest growth was again seen in panel firmsí housing activity, which expanded at the fastest rate since last August. The seasonally-adjusted Housing Activity Index recorded 56.9 in January, up from 54.1 in December. Just over a fifth of all panel firms reported that their levels of housing activity were higher than in the previous month, largely as a result of favourable economic conditions in the housing market.

The survey also registered a robust increase in commercial construction activity, although the pace of growth eased marginally compared with a month earlier. The seasonally-adjusted Commercial Activity Index measured 53.2 in January, down from 53.7 in December. Just under a quarter of all panel firms reported higher activity in January than in the previous month.

Meanwhile, despite hitting a three-month high, the pace of growth of civil engineering activity remained subdued. The seasonally-adjusted Civil Engineering Index recorded 52.6 in January up from 50.8 the month before. Just over a fifth of all panel firms reported that activity levels were higher than a month ago. However, the sector remained the poorest performing sector covered by January's survey.

Rising activity levels generally reflected a sharp increase in the amount of new business placed with construction firms in January. Order books expanded for the thirty-ninth month running and at the fastest rate since last August, with panel firms attributing greater success in tendering for new contracts to improved business conditions in the construction sector. The seasonally-adjusted New Orders Index measured 56.4 in January compared with 53.0 in December.

In line with rising activity and fuller order books, just under a quarter of all construction firms stepped up their quantities of purchases in January. The seasonally-adjusted Quantity of Purchases Index registered 54.6 in January up from 52.3 in December. Moreover, the overall rate of increase in purchasing activity was the strongest since last July (the thirty-sixth consecutive monthly rise).

Seasonally-adjusted Suppliers'Delivery times lengthened for the thirty-fourth successive month in January, as increased demand for construction commodities placed further pressure on suppliers' capacity. The seasonally-adjusted Suppliers' Delivery Times Index measured 47.4 in January down from 47.8 in December.

As has been the case since January 1999, the average price of inputs rose markedly again in January. Moreover, the rate of input price inflation was the highest since last September. The seasonally-adjusted Prices Index recorded 57.8 in January up from 56.7 in December. Shortages of certain construction materials were cited by a number of panel firms as the principal reason behind higher average costs.

Although January's survey continued to point to a further expansion of the construction sector workforce, the rate of expansion of employment was the weakest in the current upturn in staff recruitment which began in April 1999. The seasonally-adjusted Employment Index measured 51.1 in January compared with 52.3 in December. Meanwhile, panel firms' cut back on their use of sub-contractors for the second time in three months.

Finally, at 75.0 in January, the Future Business Activity Index continued to signal widespread optimism in the UK construction sector. This index showed the highest degree of optimism since last July, with expectations of increased workloads and planned expansions generally boosting confidence during the month.


FALSE SELF-EMPLOYMENT UNDERMINING BUILDING INDUSTRY SAYS FMB

Confusing and inconsistent legislation is leading to a growth in false self-employment which is favouring 'cowboy' builders, prejudices the enforcement of health and safety regulations and destroys the training ethos, claims the Federation of Master Builders. In a letter to the Chancellor, the Federation, which represents 13,000 small and medium sized building companies in the UK, has called on the Government to come up with a straightforward definition of self employment to end the growth in unfair practices which bedevil the industry.

'The present situation undermines the whole structure of the industry,' says lan Davis, Director General of the Federation of Master Builders, 'it makes it difficult to build and maintain a well-motivated, loyal workforce, causes shortages of skilled labour and contributes to an unacceptably high accident rate. Employers deplore the scenario and ambiguous legislation compounds the problem.'

Currently the treatment of employed and self-employed under tax, National lnsurance and employment law is unequal and often inconsistent. National lnsurance regulations also allow those who may be self-employed for tax purposes to be treated as 'earners' and therefore subject, together with their 'employers', to a regime designed for employees. As is well known, the tax man treats self-employed workers more favourably than employees.
The result is pressure from individuals to be engaged as 'self-employed' as they see higher take-home pay outweighing the advantages of security. This demand to be treated as self-employed (which is often bogus), is compounded by uneven and at times inadequate enforcement of the law.

In addition, the competitive pressures resulting from the willingness of some contractors to increase their use of phoney self-employed labour, to enable them to tender for contracts at a lower price than that of contractors less willing to do so, exacerbates the problem.

The Federation, other trade associations and the trade unions are pressing the Chancellor of the Exchequer, and Ministers in relevant Government Departments, urgently to establish an inter-Departmental task force to resolve the issues associated with the Construction lndustry Scheme (CIS). 'The priority must be to review the definition of employment status and provide effective enforcement of the rules relating to status,' concludes lan Davis.

Contact: Federation of Master Builders
Tel: 020 7242 7583
Fax: 020 7404 0296
Web: www.fmb.org.uk


NEW CONSTRUCTION ORDERS: NOVEMBER 2001

Orders in the year to November 2001 were unchanged compared to the previous year and orders in the three months to November 2001 fell by one per cent compared to the same three month period a year earlier.

Orders in the three months to November 2001 fell by 10 per cent compared to the previous three months, with falls in all sectors.

Private housing orders in the three months to November 2001 fell by 14 per cent compared with the previous three months and by one per cent compared with the same three month period a year ago. Orders in the year to November 2001 fell by five per cent.

Public housing and housing association orders in the three months to November 2001 fell by 22 per cent compared to the previous three months, and by 10 per cent compared to the same three month period a year earlier. Public housing and housing association orders in the year to November 2001 rose by 20 per cent when compared to the previous twelve month period. All comparisons in this sector are affected by large variations due to its relatively small size.

Infrastructure orders in the three months to November 2001 were 3 per cent lower compared with the previous three months, and were 16 per cent lower than in the same three month period a year earlier. Orders in the year to November 2001 fell by one per cent compared with the previous twelve month period.

Public non-housing orders (excluding infrastructure) in the three months to November 2001 were 13 per cent lower compared with the previous three months, but were 32 per cent higher compared to the same three month period a year earlier. Orders in the twelve months to the three months to November 2001 were six per cent higher when compared with the previous twelve month period.

Private commercial orders in the three months to November 2001 were six per cent lower compared to the previous three months, and two per cent lower than in the same three month period a year earlier. Orders in the twelve months to the three months to November 2001 were two per cent lower compared to the previous twelve month period. Private industrial orders in the three months to November 2001 were 25 per cent lower than in the previous three months, and one per cent lower compared to the same three month period a year earlier. Orders in the year to November 2001 rose by six per cent compared with the previous twelve month period.

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Also via www.statistics.gov.uk


Housebuilding: November 2001

In November 2001, it is provisionally estimated that 14,300 dwellings were started in Great Britain compared with 12,100 in November 2000. Completions numbered 14,200 compared with 14,900 the previous year. In the latest three months 44,800 dwellings were started, up 12 per cent on the same three months a year ago, while total completions at 42,300 were down 2 per cent.
Starts in autumn 2000 were seriously affected by the weather and this affects the comparison with a year ago, both for these figures and the seasonally adjusted figures below.

Seasonally adjusted comparisons:
In the latest three months there were an estimated 46,500 total starts, up 3 per cent on the previous three months, and up 11 per cent compared with the same period a year ago. On the same basis of comparison private enterprise starts were 42,500, up 3 per cent on the previous three months and up 15 per cent compared with a year ago.

Total completions were 42,100 including private enterprise completions of 34,800, up 6 per cent and 2 per cent respectively, comparing the latest three months with the previous three months. Total completions were up 2 per cent and private enterprise completions were down 1 per cent compared with the previous year.

Figures for England show similar trends to those for Great Britain. Total starts, 38,300 for the last three months were up 3 per cent on the previous three months and up 15 per cent on the same period a year ago. Total completions, 32,100 for the last three months, were at the same level as the previous three months but down 3 per cent on the same period a year ago.

Next publication date of housebuilding figures: 7 February 2002


ASSOCIATION PREDICTS BETTER TIMES AHEAD

Construction output this year is forecast to slow to just 1.8% as private sector activity is hit by slower UK economic growth and a weak and uncertain world economic environment, according to the Construction Products Association's latest construction industry forecasts. In contrast, public sector activity, including PFI work, is set to grow by 7%.

Commenting on the forecast findings, the Association's Chief Executive, Michael Ankers said: "Our latest forecasts underline the importance of ensuring the timely realisation of the Govemment' s investment plans. Although output this year is forecast to slow down significantly, if planning delays and other bureaucratic obstacles do not hold back the delivery of the Government's promised investment under the 2000 Comprehensive Spending Review, construction industry growth is forecast to exceed that ofthe general economy in 2003 and 2004 for the first time in over a decade, rising by 3.5% and 3.8% respectively.

'This year should see a significant increase in education and health related work as a number of both PFI and traditionally funded projects move forward. Similarly, increased transport investment is forecast to drive infrastructure output higher over the next three years. Sustained progress, however, is dependent upon the realisation of road investment planned under the Ten Year Transport Strategy and the swift resolution ofthe current crisis in the rail industry.

'To date, progress towards the Government's objectives for improving the social housing stock has been more disappointing, with local authorities slow to respond to the increased funding provision under the CSR, and public housing RM&I output continuing to fall. Nevertheless, the sector output is expected to
rise strongly over the next three years as local authorities deploy the increased funding and a growing number of properties benefit from improvements following their transfer into housing association ownership.'


CPA Construction forecasts - 2002 to 2004


The world economic background has deteriorated since the June forecast with the event of 11 September increasing uncertainty in an already fragile economic environment. The UK economy is expected to avoid recession, with growth driven by higher consumer spending and increased government expenditure. GDP growth is forecast to ease to 2% next year, before strengthening to 2.75% in both 2003 and 2004. Interest rates are expected to edge up during the second half of next year, reaching 5.5% from the end of 2003.

Public sector investment (including PFI projects) will be the primary source of growth over the next three years. Some delay is anticipated in the delivery of the additional expenditure funded by the Comprehensive Spending Review, with only two-thirds ofthe increase in construction-related expenditure implied in the CSR feeding through by March 2004.

Private sector work is forecast to decline slightly during 2002 before recovering during the latter years ofthe forecast. Next year overall construction growth is forecast to slow to 1.8%. Growth is forecast to strengthen to 3.5% and 3.8% in 2003 and 2004. Throughout the forecast period growth will be very much driven by increased funding under the Comprehensive Spending Review and subsequently by the impending General Election.

Key Points Underlying Forecasts

Public New Housing
A substantial increase in govemment funding is planned for the latter half of the forecast period
The impact upon the number of new homes being built will be muted, however, by the introduction ofhigher grant rates and the increased focus upon brownfield developments in higher cost areas such as London

Public Housing RM&I
Sector activity continues to disappoint with local authorities slow to respond to the increased funding provision from April under the Comprehensive Spending Review Sector output is expected to risestrongly over the next three years as local authorities deploy the increased funding and a growing number of properties benefit from improvements following their transfer into housing association ownership under the LSVT programme.

Private Housing
General housing market activityand house price inflation expected to ease during 2002.
Private housing starts also forecast to moderate next year in response to quieter market conditions, with completions at 140,000 unchanged on 2001.
Higher real income growth and improved purchaser confidence is forecast to lift starts and completions during 2003 and 2004, although planning delays are expected to limit the upturn in activity

Private housing RM&I
Strong re-mortgaging activity appears to have helped lift sector activity during 2001 as households invest in home improvement works
Recent strengthening in property transactions should fUel move-related work during 2002.
Rising real incomes are forecast to underpin sector growth through the forecast period

Infrastructure
Strong growth in 2002 fuelled by dramatic increase in road and rail investment (Birmingham Northern Relief Road, CTRL, etc.)
Order books point to further strong growth in transport infrastructure in 2002
Sharp fall in water industry expenditure to continue next year as water companies defer investment until the latter half of the forecast period
Main impact of Terminal 5 to be felt from 2003 onwards
Overall sector forecast to enjoy strong sustained recovery throughout the forecast period
Central to this forecast is the continued commitment of funds for the road investment under the Ten Year Transport Strategy and the swift resolution of the current crisis in the rail industry

Industrial
Recession in UK manufacturing forecast to prolong the decline in sector activity into 2002
Subsequent recovery forecast for 2004 as UK manufacturing benefits from improved UK and world economic growth and more favourable exchange rates.

Commercial
Along with the central London market, new office construction activity is around its peak, with output forecast to decline from 2003 onwards.
Near term retail construction activity is forecast to remain constrained by planning delays and present economic uncertainties.
The growing volume of projects in the development pipeline, however, is expected to lift output from 2003.
In the absence ofnew major schemes, entertainment related work will remain in steep decline during 2002 and 2003 before stabilising in the final year of the forecast.
Whilst the flow ofnew PFI projects has disappointed in 2001, sector activity is forecast to strengthen over he next three years as new health and education projects are released.

Public Non-Housing New Work
A recent upturn in new orders points to a strengthening in output, especially education and health work, during 2002.
Further sustained growth is forecast for 2003 and 2004 as additional funds released under the Comprehensive Spending Review filter through.

Non Housing Repair & Maintenance
Public non-residential R&M activity is forecast to enjoy a sustained rise in output over the forecast period as local authorities deploy increased central government funding towards tackling the repair backlog on school buildings and the local road network.
Private non-residential R&M activity has been buoyed by Railtrack's emergency repair programme over the last year. Output is forecast to fall back during 2002 and 2003 as rail expenditure stabilises and profits squeezed manufacturers defer maintenance works.

Tel: 020 7323 3770

http://www.constprod.org.uk


Housing statistics 2001


The annual 2001 compendium of statistics covers all aspects of housing and includes the following highlights:

* At the end of March 2001 there were 21.1 million dwellings in England, an increase of 1.46 million, or 7 per cent, on the number at the end of March 1991. 14.8 million, or seven out of ten, were owner occupied and 4.2 million, about one fifth, were rented from a local authority or a registered social landlord. The remaining 2.2 million were rented privately.

* 135 thousand new dwellings were completed in England during the financial year ending 31 March 2001. Of these, 117 thousand - or nearly 9 out of every 10 - were built for owner occupation with nearly all the remainder being built for registered social landlords.

* In mid 2000, it is estimated there were nearly 21 million households in England, about 21 and 9 percent more than that recorded in 1981 and 1991 respectively.

* In 2000, the average price of all dwellings sold in England was £107,000 - for new dwellings it was higher at £131,000. House prices in 2000 were about 15 per cent higher than in 1999 (based on the DTLR mixed adjusted house price index), with regional price rises ranging from 19 per cent in the South East to 4 per cent in the North East.

* Results from the Survey of English Housing carried out in the year to the end of March 2001 showed that 2.3 million households (11 per cent) had moved in the year prior to interview. Moving households included 42 per cent of private renters, 11 per cent of social renters and 7 per cent of owner-occupiers.

Notes
1. Housing Statistics 2001 is the second edition of the new annual compendium of statistics covering all aspects of housing in England. Where consistent data is available, tables also cover Great Britain and the United Kingdom. Much of the data is collected from routine returns from local authorities or in two large surveys carried out for DTLR, the Survey of English Housing and the Survey of Mortgage Lenders.

2. Additional tables are also available on the DTLR Web-site. The aim is to make the data collected as widely available as possible and we will increasingly be putting tables and publications onto the web-site at: www.housing.dtlr.gov.uk/research/hss/hs2001/index.htm.



Construction sector has the highest number of directors disqualified as 'Fast Track' system kicks in


Over 900 directors were banned between March and September this year, an increase of 24% over the same period last year according to the latest Government figures published.

The Construction and Demolition sector had the highest number of directors disqualified (103) closely followed by Computer Services (75) and the Textile and Clothing Manufacturing sector (73). 35% of disqualifications were in London and the South East - with 20% in the North and 13% in the Midlands.

Melanie Johnson, Competition and Consumer Affairs Minister, said: 'It's vital that the business community and consumers are protected from irresponsible, incompetent or rogue directors at the earliest opportunity.

'Dodgy directors tarnish the image of the vast majority of legitimate businesses and often leave debts and misery in their wake. 'We are also determined to clamp down on the minority of fraudulent directors who try to cheat the public. These figures should serve as a warning to all of them - we will not let you get away with it.

'However it is important to consider these figures in perspective. The vast majority of companies in business today operate efficiently and responsibly with the result that, this year, less than one in a thousand directors are likely to be disqualified.'

'The substantial increase in disqualifications this year is a direct result of the fast track process introduced by The Insolvency Act 2000. Cases can now proceed by way of written undertakings rather than being caught up in the court process.'

Under the new rules directors can give an undertaking not to act as a director for an agreed period between 2 and 15 years. The undertakings are made to The Insolvency Service and registered at Companies House. They are accessible by public search and if contravened will constitute criminal offences.

Today's figures show that of the 935 disqualifications recorded in the half year period (Q2&3), 57% were on the basis of undertakings given to and accepted by The Insolvency Service The number of directors disqualified since the 1986 Act came into force now stands at over 10,000 of which over 50% were in the last four and a half years.

The Insolvency Service's directors 'hotline' encourages the public to blow the whistle on those who continue to act as directors and defy their ban. Since the 'hotline' was set up in January 1998 over 2,300 calls have been made. Every call is followed up and in the past six months 70 contraventions were reported for prosecution by Official Receivers. Convictions have been secured in 24 cases to date.


NHBC Awards for CWG’s New Build Customers


CWG’s house builder customers throughout the Midlands and Home Counties have been collecting the prestigious Pride in the Job quality awards from the National House Building Council. This year is the twenty first during which NHBC has made these awards.

One customer for CWG’s PVC-U windows is Leach Homes for their Paddock Wood development at Cock’s Lane, Broxbourne, Hertfordshire. At a recent NHBC Quality Award dinner, attended by CWG Contracts manager Ian Barry and colleague Ted Treadwell, Leach’s site manager Ted Layton was presented with a site board, flag and certificate in recognition of his achievement.

Clearly, there are many aspects of running a site including safety and organisation which are all taken into consideration by NHBC when judging the Pride in the Job award. Leach Homes place great emphasis on sites being run to NHBC’s exacting standards.

‘Windows and doors are an important feature in any dwelling from both the aspect of appearance and security’, commented Ted, ‘We are impressed by the quality of the Rehau product supplied by CWG and by the after sales service provided which is important to us and crucial to the satisfaction of those moving into their new home’.

CWG Corby Windows
Tel : + 44 (0) 1536 409100 Fax : + 44 (0) 1536 402177
Email : mailto:sales@cwg-uk.com
Web : www.cwg-uk.com


HOUSEBUILDING: OCTOBER 2001


In October 2001, it is provisionally estimated that 16,300 dwellings were started in Great Britain compared with 13,900 in October 2000. Completions numbered 15,900 compared with 15,000 the previous year.

In the latest three months 45,700 dwellings were started, up 5 per cent on the same three months a year ago, while total completions at 41,000 were down 1 per cent.

In the latest three months there were an estimated 45,900 total starts, at the same level as the previous three months, and up 5 per cent compared with the same period a year ago. On the same basis of comparison private enterprise starts were 42,200, up 1 per cent on the previous three months and also up 8 per cent compared with a year ago.

Total completions were 40,700, including private enterprise completions of 35,400, up 2 per cent and 3 per cent respectively, comparing the latest three months with the previous three months.

Total completions were down 2 per cent. Private enterprise completions were down 1 per cent compared with the previous year.

Figures for England show similar trends to those for Great Britain. Total starts, 37,700 for the last three months were at the same level as the previous three months and up 7 per cent on the same period a year ago. Total completions, 32,900 for the last three months, were up 2 per cent over the previous three months but down 2 per cent on the same period a year ago.

Tables providing Housebuilding estimates for calendar years, quarterly and for regions of England are now available on the DTLR Website. Next publication date of housebuilding figures: 10 January 2002


www.dtlr.gov.uk
www.statistics.gov.uk



OUTPUT AND EMPLOYMENT IN THE CONSTRUCTION INDUSTRY: THIRD QUARTER 2001


The total volume of construction output in the year to the third quarter of 2001 increased by two per cent compared to the previous twelve month period. Overall new work rose slightly over the same period, despite decreases in the private industrial and private housing sectors. Repair and maintenance rose, with increases in the private housing and private and public non-housing sectors more than offsetting falls in the public housing sector.

Output in the third quarter of 2001 rose by one per cent compared to the second quarter in volume terms and by four per cent in current prices. The total volume of new work in the year to the third quarter of 2001 was one per cent higher compared with the previous twelve months and was also two per cent higher in the third quarter compared with the previous quarter. The total volume of repair and maintenance work was three per cent higher in the year to the third quarter of 2001 compared with the previous twelve months, and was unchanged in the third quarter of 2001 compared to the previous quarter.

New private housing work in the year to the third quarter of 2001 was four per cent lower compared with the previous year but the third quarter was seven per cent higher than the second quarter of 2001. New work in the public housing sector in the year to the third quarter of 2001 was six per cent higher (on a small base figure) compared with the previous twelve months but the latest quarter was six per cent lower than the previous quarter. New infrastructure output in the year to the third quarter of 2001 was eight per cent higher compared with the previous twelve months, and the third quarter of 2001 rose by four per cent compared with the second quarter of 2001.

New construction work in the private industrial sector in the year to the third quarter of 2001 was five per cent lower compared with the previous year, and the third quarter was one per cent lower than the previous quarter. New private commercial output in the year to the third quarter of 2001 increased by one per cent compared to the previous year and increased by two per cent in the third quarter compared to the second quarter of 2001. New work in the public non-housing sector (excluding infrastructure) in the year to the third quarter of 2001 was unchanged compared to the previous twelve months, but the third quarter fell by one per cent compared with the previous quarter.

Housing repair and maintenance work (including improvement work) in the public sector was eight per cent lower in the year to the third quarter of 2001 compared with the previous twelve months and five per cent lower in the most recent quarter compared with previous quarter. Housing repair and maintenance work in the private sector in the year to the second quarter of 2001 was three per cent higher compared with the previous twelve months but was three per cent lower in the third quarter compared to the previous quarter. Repair and maintenance work in the public non-housing sector in the year to the third quarter of 2001 was two per cent higher compared with the previous twelve months and 18 per cent higher in the most recent quarter compared with the second quarter of 2001. Repair and maintenance work in the private non-housing sector in the year to the third quarter of 2001 was 14 per cent higher compared with the previous year but was four per cent lower in the most recent quarter compared with the previous quarter.

The seasonally adjusted number of employees in employment in July 2001 was two per cent lower compared with April 2001 and was three per cent lower compared with July 2000. Total employment (including the self-employed) in July 2001 was two per cent higher compared with April 2001 and was four per cent higher compared with July 2000.Additional graphs showing more detailed trends in individual sectors are included in the Information Bulletin. This includes regional tables for the first time.

Next publication date of Output and Employment in the Construction Industry Information Bulletin: 1 March 2002


http://www.dti.gov.uk
www.statistics.gov.uk


 

Strong Construction Activity for UK in 3rd quarter


The RICS UK Economic Brief for November indicates that construction output rose strongly for the fourth consecutive quarter, with public sector activity contributing significantly to this rise. However, the report notes that whilst survey evidence points to a continual rise in output, there are belated signs that growth in activity is set to ease back.

Public sector activity surged in Q3 by 8.2%. This increase is in the main due to an increase in the infrastructure sector, although order data indicates that demand for housing and non-housing work in the public sector has been rising strongly over the last two years.

The report also notes that the repair and maintenance sector in general is stronger than the new build sector with R&M output 3.4% higher in the first six months of the year than in the same period in 2000. Many economic forecasters see this new build slowdown being lead by the business sector. Surveys show a slowdown in private sector construction workloads for Q3, which can be seen as a response by commercial companies to a squeeze on their profits. Industries such as IT and telecoms will shelve expansion plans, thereby denting the demand for new buildings.

This comment is from http://www.buildonline.com


Current Papers


* Consultation Paper - Part B
The Building Act 1984. The Building Regulations 2000: Proposals for Amending Part B Fire Safety - European Supplement (http://www.safety.dtlr.gov.uk/bregs/consult/partb/index.htm)
Issued 16 November 2001. Responses requested by 15 February 2002.
Copies (product code 01 CD 0818) are available from: DTLR Free Literature, PO Box 236, Wetherby, West Yorkshire, LS23 7NB (Tel: 0870 1226 236, Fax: 0870 1226 237, Textphone: 0870 1207 405, E-mail: dtlr@twoten.press.net).


HOUSING FEDERATION CONFERENCE GETS OFF TO A FLYING START AT DUXFORD


The lmperial War Museum at Duxford, near Cambridge, was the venue for a recent Housing Federation conference sponsored by VEKA fabricator Ashford Windows.

The event, entitled 'Making the Most of your Key Assets: Property, People and
Partners' offered a number of key presentations to over 60 delegates from councils and housing associations from all parts of the country. The issues covered included some of the complex changes that are currently taking place within the public housing market.

During their breaks from the seminars attendees had the opportunity to view the high specification windows and doors offered within the VEKA range, and to speak to representatives from North Walsham-based Ashford Windows, one of the UK's most experienced public housing window specialists.


John Lawrence (left), from Ashford Windows with a conference
attendee and Ian Davis from Veka


VEKA's Big Rig took centre stage outside the former RAF Officers Mess, just a few metres from some of the Duxford exhibits such as a prototype Concord. The mobile exhibition unit is used throughout the year to support VEKA customers, for events such as the housing conference, to support local authorities when liasing with their tenants, or simply for fun days at summer fetes.

Mick Neale, of Ashford Windows was delighted to be associated with the event: "A central theme of the day was Partnerships. This event enabled Ashford Windows to play our part in working with a number of key specifiers to keep abreast of the tremendous changes the public sector housing market is going through.


HSE launches research into safety in construction industry

The Health and Safety Executive (HSE) has published the first phase of a research project designed to improve intelligence on the causes of accidents in the construction industry.

The study conducted by engineering consultants BOMEL Ltd is an analysis of HSE data to structure the causes of accidents into a model which will provide a basis for quantifying risk and identifying or evaluating improvement measures.

The research identified some 40 fundamental underlying influences on construction which can lead to accidents, including - political, economic and social and human factors as well as the more immediate organisational and technical factors. A number of key influences were highlighted such as safety management and client contracting strategies, training, supervision information feedback and design for safe construction, competence, communications, situational awareness and compliance.

The research supporting HSE's current approaches to construction safety made the following key findings:
* Falls are the major cause of fatalities with ladders and scaffolds being the main agents with scaffolders and roofers continuing to be at most risk.
* The majority of fatal accidents happen on smaller construction sites but there is no specific association with time of day, age or geographic region.
* Risks associated with employment status were difficult to evaluate because data on employment status was unreliable. Such evidence as there was appeared to be related to trades and their traditional employment practices.
* Some potential analysis was restricted by uncertainties or limitations of key data, including population data (particularly by trade), RIDDOR coding and some of HSE's coding and classification.

The report also suggests the Action Plans presented at the Construction Health and Safety Summit in February should be further refined to demonstrate a clear link through to the targets for accident and ill-health reductions.

BOMEL will carry out the second phase of the project to develop and calibrate the influence network, by using it to analyse a wider range of accident types and ensure it can also be used to consider health issues.

Kevin Myers, chief inspector of construction, said:
"HSE will take forward the recommendations in the report. We will use it to help frame our construction intervention strategy. We will also work with Bomel to both fine-tune the influence network and extend it to include health issues, thereby providing a more generic view of the main causative factors in construction accidents on ill health.

"There are clearly lessons in this list for all stakeholders, and HSE intends to act on those issues where it can have the greatest effect through its contacts with the industry. These lessons will help shape HSE's and the industry's strategies to improve health and safety, and assist the industry to meet its Revitalising targets."

NOTES
1.Improving Health and Safety in Construction: Phase 1: Data collection, review and structuring, price £35, ISBN Number: 0 7176 2140 5, can be ordered online at: http://www.hsebooks.co.uk or is available from HSE Books, PO Box 1999, Sudbury, Suffolk, CO10 2WA, tel: 01787-881165 or fax: 01787-313995). HSE priced publications are also available from all good bookshops. It is also available to download directly from HSE's website as Contract Research Report Number: CRR 387 and comments are welcome. HSE's Contract Research Reports are available on the HSE website at: http://www.hse.gov.uk/research/content/crr.index.htm

2. The industry has set the following targets for improvement. To:
* Reduce the incidence rate of fatalities and major injuries by 40% by 2004/5 and 66% by 2009/10;
* Reduce the incidence rate of cases of work-related ill health by 20% by 2004/5 and 50% by 2009/10:
* Reduce the number of working days lost per 100,000 workers from work-related injury and ill health by 20% by 2004/5 and by 50% by 2009/10.


Bringing new European fire test standards into play


Proposals to incorporate new EU fire test standards into England and Wales' Building Regulations are set to open up the European market for construction products made in the UK.

The European Supplement to Approved Document B will amend current guidance and set out how the results of the new EU fire test standards can be assessed to meet the Building Regulations 2000.

Proposals to amend Approved Document B follow the implementation of the Construction Products Directive (CPD), which seeks to harmonise the methods of testing - in this case both fire resistance and reaction to fire.

Minister for the Fire Service, Dr Alan Whitehead, said:"These proposals signify a real step forward in breaking down technical barriers to trade in construction products between Member States. I would like to congratulate the members of the UK national committee who made their expertise available to help develop these test methods into ones that we could support on a national basis.

The consultation paper is available at: http://www.safety.dtlr.gov.uk/bregs/consult/partb/index.htm.

Part B of the Building Regulations - Fire safety, was last revised in 2000. The Approved Document to Part B offers guidance on fire safety measures that will meet the requirements of the fire safety aspects of the Building Regulations. Guidance is provided on means of escape, fire alarm and detection systems, both internal and external fire spread and access and facilities for the fire service.

The CPD (1988) aims to break down technical barriers to trade in construction products between Member States in the European Economic Area. To achieve this the CPD provides for, amongst other provisions, a system of harmonised technical specifications and the CE marking of products. The CPD harmonises the methods of test, in this case fire resistance and reaction to fire, including the method of conformity assessment and declaration of product performance values.

The CPD is concerned purely with the placing of construction products on the market. It is not the aim of the Directive to harmonise regulations. The setting of Building Regulations will continue to be a matter for the individual Member States.

CE marking is a 'passport' enabling a product to be legally placed on the market in any Member State. However, this does not necessarily mean that the product will be suitable for all end uses in all Member States. The CE marking is in effect a harmonised technical data sheet. Together with the standard, it gives all the information needed by specifiers and enforcers to judge whether the product is suitable for a particular intended use in the country in which it is sold.

A significant element of the new EU fire tests for reaction to fire is the Single Burning Item (SBI) test which has recently been approved at European level. It will eventually apply across the 15 member states, offering UK manufacturers of construction products greater consistency over a wider EU market.
http://www.press.dtlr.gov.uk/0111/0488.htm



Housebuilding: September 2001

In September 2001, it is provisionally estimated that 15,700 dwellings were started in Great Britain compared with 14,200 in September 2000. Completions numbered 13,700 compared with 13,300 the previous year.
In the latest three months 47,400 dwellings were started, up 3 per cent on the same three months a year ago, while total completions at 40,800 were up 1 per cent.
Seasonally adjusted comparisons (see Notes to Editors)
In the latest three months there were an estimated 45,800 total starts, up 3 per cent compared with the previous three months, and up 2 per cent compared with the same period a year ago. On the same basis of comparison private enterprise starts were 42,100, up 4 per cent on the previous three months and also up 4 per cent compared with a year ago.

Total completions were 40,800 and private enterprise completions were 36,000, up 3 per cent and 5 per cent respectively, comparing the latest three months with the previous three months. Total completions were at the same level and private enterprise completions were up 2 per cent compared with the previous year.

Registered Social Landlords (and unregistered housing associations) starts in the three months to September were 3,600, down 12 per cent compared with the previous three months. The equivalent figure of 4,700 for completions shows a decrease of 10 per cent. Both starts and completions by local authorities remained at an insignificantly low level.

Additional Notes
1. Estimates are included in the monthly figures for Great Britain of housebuilding in Wales and Scotland but they are not published separately in the Statistical Release.
2. Because monthly figures are very variable, attention is directed to the latest three months rather than to the latest single month.
3. The figures shown in tables 1 and 2 are derived from records kept for building control purposes. It is sometimes difficult for data providers to identify whether a dwelling is being built for a housing association or for a private developer. This may lead to an understatement of housing association starts and completions recorded in these tables, and a corresponding overstatement of private enterprise figures. This problem is more likely to occur with starts than completions.
4. Registered Social Landlords (RSLs) include housing associations and Local Housing Companies that are registered with the Housing Corporation; some housing associations are not registered and are outside this RSL category. The Housing Corporation was able to register Local Housing Companies from the end of 1996.
5. National Statistics are produced to high professional standards set out in the National Statistics Code of Practice. They undergo regular quality assurance Reviews to ensure that they meet customer needs.
6. Tables providing Housebuilding estimates for calendar years, quarterly and for regions of England are now available here:

Table 1: Housebuilding Starts and Completions, Great Britain
Table 2: Housebuilding Starts and Completions, England
Housebuilding Starts and Completions, Calendar Year Totals
Housebuilding Starts and Completions: Regions, not seasonally adjusted
Housebuilding Starts and Completions: Charts
Housebuilding Starts and Completions: Charts and Tables
7. Next publication date of housebuilding figures: 6 December 2001.


http://www.press.dtlr.gov.uk/0111/hb-11.htm


NEW CONSTRUCTION ORDERS: SEPTEMBER 2001


Orders in the year to the third quarter of 2001 rose by two per cent compared to the previous year and orders in the third quarter of 2001 rose by six per cent compared to the same quarter a year earlier.

Orders in the third quarter of 2001 rose by 11 per cent compared to the previous quarter, with rises in the infrastructure, private commercial and private housing sectors more than offsetting falls in the public housing, public non- housing and private industrial sectors.

Private housing orders in the third quarter of 2001 rose by nine per cent compared with the previous quarter and by four per cent compared with the same quarter a year ago. Orders in the year to the third quarter of 2001 fell by seven per cent. Public housing and housing association orders in the third quarter of 2001 showed a fall of 13 per cent compared to the previous quarter, but rose by 15 per cent compared to the same quarter a year earlier. Public housing and housing association orders in the year to the third quarter of 2001 rose by 14 per cent when compared to the previous twelve month period. All comparisons in this sector are affected by large variations due to its relatively small size.

Infrastructure orders in the third quarter of 2001 were 37 per cent higher compared with the previous quarter, and were 14 per cent higher than in the same quarter a year earlier. Orders in the year to the third quarter of 2001 rose by nine per cent compared with the previous twelve month period.

Public non-housing orders (excluding infrastructure) in the third quarter of 2001 were 12 per cent lower compared with the previous quarter, but were 21 per cent higher compared to the same quarter a year earlier. Orders in the twelve months to the third quarter of 2001 were one per cent higher when compared with the previous twelve month period.

Private commercial orders in the third quarter of 2001 were 20 per cent higher compared to the previous quarter, following high orders levels in the retail and entertainment sectors, but one percent lower than in the same quarter a year earlier. This fall was mainly due to low levels of office orders. Orders in the twelve months to the third quarter of 2001 were three per cent higher than in the previous twelve month period. Private industrial orders in the third quarter of 2001 were nine per cent lower than in the previous quarter, and three per cent lower compared to the same quarter a year earlier. Orders in the year to the third quarter of 2001 fell by one per cent compared with the previous twelve month period.

Next publication date of New Construction Orders Statistical Release: 13 December 2001

Tables and Graphs are available on the DTI website at:

http://www2.dti.gov.uk/construction/stats/output.htm


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