• Can Labour Get Britain Building Again?
• Project Case Study: Priory View
• Tender Price Index Update
• Project Case Study: Commercial Way
• Nurturing Future Talent Through Apprenticeships
• Health & Safety / CDM Services
• L&Q Minds Matter FC Football Tournament 2024
• Event: The Housing Community Summit 2024

Can Labour Get Britain Building Again?

The recent change in Government has sparked fresh discussions on how the housing sector will evolve under new leadership. In her first speech as Chancellor, Rachel Reeves promised to “get Britain building again”, with Labour committing to delivering 1.5 million homes in England over the next five years to boost the UK’s economic growth. The Government has also mentioned bringing back mandatory housing targets, which will be needed to manage this number of homes. The graph below shows new build completed dwellings including all tenures and highlights that the last time 300,000 homes were built in England in a single year was back in 1970!

This initiative directly addresses the housing shortage facing the UK and if successful, will provide much needed affordable homes. We believe this ambitious target will require significant shifts in policy and a new financial model for the affordable housing sector.

The Chartered Institute of Housing (CIH), alongside several housing associations and councils, have signed an open letter to Deputy Prime Minister Angela Rayner to express concerns about the feasibility of Labour’s housing target under the current financial model. The letter highlights that delivering 1.5 million homes is unattainable without a cash injection into the affordable housing sector, and a fair and sustainable financial model being developed.

One of Labour’s strategies involves reviewing green belt boundaries to prioritise the development of brownfield and “grey belt” land. These areas, including disused car parks and wasteland, offer opportunities for redevelopment without encroaching on valuable green space. This approach aligns with Martin Arnold’s emphasis on sustainable development and using existing land resources efficiently. We have successfully completed many urban fringe sites like this, most recently delivering over 200 affordable homes for Brighton & Hove in a joint venture with Hyde Housing; you can find out more about this here.

Additionally, the Labour Government has announced plans for a planning reform through a Planning and Infrastructure Bill. The proposed legislation aims to speed up and streamline the planning process, especially major development projects, to support the new government’s other energy and transport strategies, including upgrading the National Grid and boosting renewable energy use. It is anticipated that the Bill will unlock more housing and infrastructure across the country as well as support economic growth and the environment.

Martin Arnold welcomes the ambitious housing target set by the Labour Government over the next 5 years and we believe that improvements to the planning process are essential to ensure success. However, we are cautious that there are no quick fixes.

As the housing sector navigates these changes, Martin Arnold believe that collaboration between government, housing bodies and developers will be essential to achieve these targets and to address the housing needs of communities across England.

We are working collaboratively with several housing associations, local authorities and developers, to unlock challenging sites through joint venture partnerships. If you would like to find out more about joint ventures, please visit this page here, or alternatively contact us through our website.

Priory View Cladding Remediation

Martin Arnold was appointed for a cladding remediation project in Portsmouth under the government’s Building Safety Fund. The project involved a medium-rise residential building with three connected cores.

The works included removing combustible materials from the facade, replacing them with non-combustible alternatives like Rockwool insulation, Y-wall sheathing board, and silicone render. We also used non-combustible ‘timber effect’ panels.

We undertook the roles of Employer’s Agent, Clerk of Works and Cost Consultant. We also supported with fire compartmentation surveys in collaboration with the Fire Engineers. We supported the client in preparing the Employer’s Requirements, finalising project finances, and contract administration.

Challenges included repairs to the existing substrate, detailed design coordination for junctions and waterproofing, and ensuring high-quality workmanship. We overcame these by conducting detailed inspections and collaborating with contractors and suppliers to resolve specific building issues. Our Clerk of Works also established a quality benchmark to minimise the risk of snagging.

Discover more about the project here: https://www.martinarnold.co.uk/project/priory-view/ 

Tender Price Index Update

A review of the BCIS Tender Price Index (TPI) shows tender prices have risen slightly in the last quarter, increasing by 0.5% when compared to Q2 2024. There is no change in the trend of TPI growth and indications are that this growth will remain on the increase for the rest of the year albeit at a low rate. Annual inflation in tender prices has obviously fallen in comparison with 2023 when we were still experiencing the tail end of the post-Ukraine inflationary hike. The BCIS are forecasting annual increases throughout 2024 to be 2.1% overall. This largely accords with the pricing data Martin Arnold have accumulated in year which shows that on the whole prices have not fallen but have stayed very flat in respect of increases.

For 2025, the BCIS, along with most of the published headline forecasts are seeing a return to more typical rates of inflation within construction costs of between 3-4%. We believe from discussions with the market that prices remain very susceptible to outside shocks. As such if we do see increased funding as a result of the new Government (this seems unlikely unless there are surprises in the Budget) or other supply side shocks, then prices could change very quickly. The key metric most of our clients are looking to is the interest rate and how quickly the Bank may reduce this, thereby stimulating demand in the economy and for construction.

A more detailed look at how prices are changing demonstrates that material costs have shown consistent decreases over the past year; and costs are forecast to drop further in the next quarter, by 1%. Steel and concrete costs continue to stabilise, however there are continued issues with the costs of M&E products, as well as overall costs still being high – this indicates no changes from the last quarter.

Construction labour costs are expected to continually rise, however in the last period the rate of increase has slowed to 1.2%. Labour costs are forecasted to increase by 17% over the next 5 years. Rates continue to rise in line with inflation, and the pace of annual growth is expected to continue to slow. Under the new government, there is promise that a delivery of new skilled labour can emerge to bulk out a dwindling workforce, but this remains to be seen and will be a key determinant on how the market performs over the mid-term.

Total new work output has decreased again in the last three months, by 0.5%. New work output is also still decreasing, although the rate has slowed in comparison to previous quarters. The popularity of repair and maintenance is still prevalent as this sector continues to increase, by 0.3% compared to last quarter.

The construction industry, and the economy generally, continues to be in a state of uncertainty. However, it is estimated that this could be short-lived, with a return to growth expected in the first half of 2025 prompted by reductions in interest rates. The BCIS are forecasting that total new work is expected to grow by 21% between 2024 and 2029.

Project Case Study: Commercial Way

Martin Arnold served as Employer’s Agent, Cost Consultant, Principal Designer, and Clerk of Works on a project to deliver a new development on the North Peckham Estate. Commercial Way comprises 74 Council Rent and 35 Shared Ownership homes, including family and wheelchair-accessible units. The scheme forms part of Southwark Council’s new homes programme which is building thousands of new council homes across the borough, in alignment with Southwark Council’s
Charter of Principles.

Sustainability features include connecting to the North Peckham Estate district heating system, which will reduce carbon emissions and costs for residents. Enhanced fabric performance, rooftop PV panels, and designs to reduce solar gain have also been included in the scheme.

Commercial Way was a Finalist in the 2023 Inside Housing Awards for Affordable Housing Development and scored a perfect 45 out of 45 in the Considerate Constructors Scheme; the project was praised for its community engagement and environmental consideration.

Learn more about the project here: https://www.martinarnold.co.uk/project/commercial-way/

Nurturing Future Talent Through Apprenticeships

At Martin Arnold, we have always prioritised staff training and development, recognising that our people are our greatest asset. This commitment is reflected in our growing apprenticeship programme with apprentices making up nearly 13% of our workforce. As of now, we employ 11 apprentices who are at different stages of Level 4 and Level 6 qualifications; our apprentices work within our Building Surveying, Quantity Surveying and Architecture teams. We are also excited to welcome eight new apprentices at the start of the academic year in September, further building our team.

In recent years, student numbers in higher education have reached record levels, with 2.86 million students enrolled in UK institutions during the 2021-22 academic year. While higher education remains a popular choice, attitudes towards apprenticeships have shifted significantly with them increasingly being seen as a viable and attractive alternative to traditional university education. Government figures from October 2023 indicate that 41,340 apprentices started degree apprenticeships at the Bachelor’s (Level 6) and Master’s (Level 7) levels in England during 2022/23, marking a 9% increase from the previous year.

Apprenticeships are appealing for a number of reasons. They offer a hands-on experience while earning a qualification and a salary. Unlike university students, apprentices earn a salary and gain industry experience from day one. Additionally, the government and employers typically cover the tuition costs for apprenticeships, allowing students to graduate debt-free.

Our apprentices receive comprehensive support from senior members of our practice, ensuring they gain exposure to a wide range of projects and have the opportunity to develop their skills in areas where they may need improvement. This support has proven effective, with many of our apprentices and graduates going on to have long and successful careers with us. Notably, 70% of our Directors and 50% of our Associates started at Martin Arnold as graduates or apprentices.

We are also proud of our partnership with organisations like The Hyde Group, who we have worked with to provide opportunities for students like Vishal Maugi. Vishal joined us as a Quantity Surveying Intern after facing difficulties securing an industry placement. His experience with us has given him invaluable industry insight and practical skills that will serve him well in his future career.

At Martin Arnold, we believe in the power of apprenticeships and using them to shape the future of our industry. By investing in the next generation of professionals, we ensure that our practice remains at the forefront of the construction and surveying sectors.

To learn more about our training and apprenticeship opportunities at Martin Arnold, click here.

Health & Safety / CDM Services

As we celebrate 25 years of success, Martin Arnold remains dedicated to delivering top-tier Health & Safety and CDM services. Our goal is to help clients stay compliant with the Health and Safety at Work Act 1974 and The Construction (Design & Management) Regulations 2015 (CDM).

With extensive experience as Principal Designers and CDM Advisors, we have an in-depth understanding of CDM Regulations and Health & Safety legislation. We ensure that our clients meet their legal obligations through structured processes and detailed documentation, fostering seamless collaboration among all project team members for safe and successful project outcomes.

Our team members are affiliated with the Institution of Occupational Safety and Health (IOSH) and the Association of Project Safety. As a multidisciplinary business, our Surveyors are also RICS members, enabling them to provide expert advice to clients, designers, and principal contractors throughout a project’s lifecycle.

We excel in the Principal Designer role and provide a range of CDM services, including:

• Competence checks for appointed design team members
• Attendance at design team meetings to ensure compliant designs
• RIBA Stage 4 design compliance reviews
• Compilation and issuance of pre-construction information packs for tender
• Review of the Principal Contractor’s Construction Phase Plan and advice on suitability
• Compliance audits of CDM Regulations Schedule 2 & 3
• Attendance at project meetings to ensure ongoing cooperation between designers and contractors

Our initial focus is on compliance with Schedule 2 of CDM 2015, before conducting enhanced technical reviews to ensure safety measures align with Schedule 3, addressing risks such as falls, chemical exposure, and high voltage.

Our other Health & Safety services include:

• Site Health & Safety inspections
• Compilation of company Health & Safety policies and procedures
• Annual reviews and updates of safety performance and policies
• Advice on legislative changes
• Compilation of Construction Phase H&S Plans and risk assessments
• Workplace audits and inspections
• Accident investigations and reporting
• Emergency assistance for serious incidents, including HSE representation
• Online or in-house health and safety training, including toolbox talks
• Support for SSIP, CHAS, SMAS, and Constructionline Accreditations

We help our clients to identify and address potential non-compliance issues that could lead to accidents or long-term ill-health. Our Site Inspection team assesses statutory paperwork, site management plans, and compliance with safety standards, ensuring thorough and effective oversight.

Martin Arnold acts as the ‘competent’ Health & Safety organisation for our client base, helping companies meet their legal obligations and enhance site safety. We offer tailored support for both existing in-house services and those lacking dedicated Health & Safety professionals.

For more information on how we can support your Health & Safety needs, contact us today.

L&Q Minds Matter FC Football Tournament 2024

Congratulations to our Martin Arnold football team for their incredible win at the L&Q Minds Matter FC Football Tournament 2024—for the third year in a row!

Hosted at the West Ham United Community Foundation Stadium, this annual event was organised by L&Q to raise crucial funds for Minds Matter FC, a charity football team dedicated to supporting individuals facing mental health challenges. This year’s tournament was the biggest yet, featuring 11 corporate teams and raising an impressive £7,700. These funds will go towards buying new equipment, pitch fees, league registration and travel, ensuring the charity can continue its vital work in empowering individuals through sport.

Martin Arnold FC proudly took home the coveted trophy once again, continuing their winning streak. A huge thank you to everyone who contributed to making this event such a success!

Event: The Housing Community Summit 2024

Martin Arnold were pleased to take part in the Housing Community Summit in September, where the National Housing Federation and Chartered Institute of Housing came together to debate and shape the future of social housing. We felt that the two-day summit was a resounding success with 3,000 delegates and a host of speeches, presentations and panel debates that focused on the critical issues facing the sector at this time of governmental change and housing policy review.

A highlight from the conference included the panel session on what the best investment options are in 2024; the session focused on the importance of establishing and building long-term investor relationships rather than transactional borrowing arrangements. This was particularly relevant to the work Martin Arnold has been doing with our clients on joint venture business models, where we have helped to deliver large-scale residential schemes through joint venture agreements, such as the regeneration of Friary Park where we are working with Peabody and Mount Anvil to deliver 1,200 new homes.

Martin Arnold have already registered our interest for next year’s Summit as we suspect that the conference will grow and become an important and regular fixture on the housing calendar for the years to come.

If you’d like to discuss joint ventures or alternative procurement strategies, please reach out via our website by clicking here. Additionally, if you’re attending SEC2024 on 16th September or the THF 2024 National Conference on 22nd October, feel free to get in touch at ma@martinarnold.co.uk. Our Martin Arnold delegates would be delighted to meet you.