CPA Weekly Notes Issue No. 740, FOR MEMBERS ONLY 18 November 2016
November 18 2016 CPA News
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CPA Weekly Notes Issue No. 740, 18 November 2016
18/11/2016
Issue No. 740
FOR MEMBERS ONLY
18 November 2016
Economy
Economy
- Annual CPI inflation was 0.9% in October, marginally down from a 1.0% recorded in September, according to the ONS. Slower price increases for clothing and tuition fees alongside a fall in prices for games and toys, overnight hotel stays and non-alcoholic beverages were responsible for the lower rate of inflation in October. Annual RPI inflation was 2.0% in October, unchanged from the previous month. The impacts of cost/price inflation following the depreciation in Sterling have not fed through as yet but would be expected to feed through over the next 9-12 months.
- According to the ONS,
- The unemployment rate was 4.8% in the three months to September, down from 4.9% in the three months to June and lower than a rate of 5.3% recorded a year earlier, according to the ONS. Furthermore, the employment rate reached 74.5% in the period July to September 2016, the joint highest since comparable records began in 1971. This rate was up from 73.8% in the same period a year earlier.
- Average total weekly earnings across the whole economy increased 2.5% year-on-year in September, according to the ONS. Earnings in manufacturing increased 2.8% year-on-year and in construction, earnings were 3.2% higher on an annual basis.
- According to the ONS, the volume of retail sales increased 7.4% year-on-year in October, the strongest growth in nearly 15 years and was 1.9% higher than in September. The robust growth in October was due to cooler weather conditions that boosted sales for clothing and footwear. In addition to this, stronger sales were reported for textiles. By value, retail sales rose 6.6% in annual terms and were 2.1% higher over the month.
- In September, according to the ONS and Land Registry, UK house prices rose 7.7% year-on-year, unchanged from August. By nation, house prices grew 8.3% in England, 4.4% in Wales, 3.4% in Scotland and 5.4% in Northern Ireland. According to region, annual house price increases in England were driven by rises in the East of England (12.1%), London (10.9%) and South East (9.9%). Overall, the average UK house price in September was £217,888. The lowest was £124,093 in Northern Ireland and the highest was £487,649 in London. The latest figures reflect the resilience in the housing market where house prices remain supported by the imbalance between demand and supply.
Housing
- The Council of Mortgage Lenders reported that total gross mortgage lending in October reached £20.6 billion. This was 0.5% higher than in September but 5.4% lower than a year earlier. Growth in mortgage approvals over the month continued to reflect strong demand however, given the lack of properties for sale on the market, the CML anticipate activity to be driven by remortgaging activity and less by house purchases going forward. Furthermore, remortgaging activity will be supported by record-low mortgage rates, which are incentivising borrowers to refinance.
- In October, private housing starts in Great Britain decreased 28.7% year-on-year and 1.6% on a monthly basis, according to the NHBC. Completions were 5.6% lower than a year earlier and decreased 13.1% month-on-month.
- In England, annual housing supply totalled 189,650 net additional dwellings in 2015/16, 11.1% higher than in 2014/15, according to the DCLG. However, this remains 15.2% below its recent peak in 2007/08.
- According to the DCLG, an additional 32,110 affordable homes were delivered in England in 2015/16. This was 51.8% lower than the 66,000 affordable homes delivered in 2014/15. New build homes accounted for 89% of all affordable homes supplied in 20115/16.
- CPA Chief Exec Dr Diana Montgomery attended the Q4 meeting of the CBI’s Trade Association Council, to discuss the upcoming Autumn Statement, the Brexit debate, state of trade, and the government’s approach to an industrial strategy;
- CPA Sustainability Policy Advisor Jane Thornback attended the CBI’s Business Environment group to discuss what a low carbon industrial strategy might look like with business at the heart of delivering it.
For further information contact amandeep.bahra@constructionproducts.org.uk
Association Activities
SAP 2016 Consultation
On 16 November BEIS released their consultation on the proposed changes to SAP 2012. A copy of the consultation document SAP 2016 can be viewed here.This consultation closes on 31 January 2017. If anyone has any queries about this work please contact Neil Witney directly on buildingheat@beis.gov.uk.
The draft specifications for the new version of SAP and supporting technical papers are available here.A software implementation of the proposed SAP methodology has been prepared to assist consultees in understanding how the proposed changes, as and when adopted, would work in practice and can be found here.
So that CPA can submit a response based on the general consensus of the membership, please can you cc duncan.king@constructionproducts.org.uk with your individual replies by Friday 20 January 2017.
Please note that any future changes to Building Regulations to adopt any changes arising from this consultation will be the subject of separate consultations and decisions by the individual Devolved Administrations.
Meetings with the Confederation of British Industry (CBI)
The CPA are Trade Association Members of the CBI, one of the UK’s largest business lobbying organisations representing 190,000 businesses. This week:
Save the Date & Call for Sponsors: CPA Spring Lunch – 11 April 2017 (London)
The CPA will host its annual Spring Lunch on Tuesday, 11 April 2017 at the Dorchester Hotel in London, following the AGM. Ticket will go on sale via the CPA website in early 2017 – watch this space for notifications. Tickets will be sold on a first-come, first-served basis – the CPA will not take advance reservations for Spring Lunch tickets.
If you are interested in sponsoring the Spring Lunch, please contact Simon.Frame@constructionproducts.org.uk.
CPA report: The Future for Construction Product Manufacturing
CPA recently published this report which analyses how through a combination of digitalisation, automation and optimised manufacturing-led supply chains, the sector can grow 60% by 2025, assets can be delivered over 30% cheaper and 40% quicker, and the trade gap can be reduced to 50% by 2025 whilst supporting employment growth in the sector and wider economy. This report illustrates how the vision can be delivered by linking BIM (Building Information Modelling), Industry 4.0 (smart factories) and intelligent assets through optimised supply chains and a circular UK construction economy. To read either the executive summary or full report, please click here.
New date for next SCC meeting – Friday 02 December
The SCC meeting prior to the end of the year will now be on Friday morning 2 December. This replaces the previously notified 30 November. For further information please contact julie.mills@constructionproducts.org.uk.
Relevant Authorities Workshop #3 – 05 December (London)
Our third workshop on project data management and templates will take place on 5th December from 13.00 – 17.00.The workshop will be held at the Building Centre, 26 Store Street, London WC1E 7BT in the Vincent Suite C. Further events will be organised throughout 2017. For more information, please contact julie.mills@constructionproducts.org.uk.
Flooding Review #2 – 12 December (London)
Our second workshop on resilience and flooding will take place on the 12th December from 13.00 – 17.00. This workshop is intended to explore and showcase products that answer the key questions in response to flooding issues. We also hope to develop a little further the issues and themes raised at our initial discussion. We will also build on the recommendations of the Bonfield review. For more information, please contact julie.mills@constructionproducts.org.uk.
Other Areas of Interest
UK ratifies Paris Climate Change Agreement
The UK has ratified the Paris Climate Change Agreement which commits countries to taking action to hold temperature rises to well below 2C above pre-industrial levels and to try to stabilise emissions at a level which would see a temperature rise of no more than 1.5C. The UK
Climate Change Act and its relatedfifth carbon budget approved by the UK Parliament in July and covering the period 2028-2032, will be two of the key elements for delivery. For further information contact jane.thornback@constructionproducts.org.uk.
Exporting is GREAT guide
The UK Trade and Investment Government Department have released their latest Exporting is GREAT export guide, with information covering a “10-point plan to exporting”. To download the free guide, click here.
BRE/APRES 6th Action Programme for Responsible & Ethical Sourcing (APRES) Conference, London, 29 November 2016
The theme of this year’s one-day conference is ‘Responsible and ethical sourcing – a professional approach for materials, products and people’. Find details here. CPA members can obtain a discount using the code APRESMEM and can book online here. Any enquiries to Shamir.ghumra@bre.co.uk.
BSI issues its draft Circular Economy Framework Standard for open consultation – BS8001
The proposed Framework Standard aims to be a guide for implementing the principles of the circular economy in organisations; it applies to any sector. The consultation will remain open until 15 January and we will have it as an agenda item on the CPA Sustainability meeting on 2nd December. Find the document here. Also, a reminder that CPA with BRE produced a detailed Knowledge Resource on Circular Economy in Construction which gives lots of helpful links and thoughts on issues and challenges for embedding circular economy principles into construction. Find it easily available on the CPA website here. For further information contact jane.thornback@constructionproducts.org.uk.
Parliamentary and Government Update
Parliamentary update
Westminster weekly business
The finalised Westminster business document for the week commencing Monday, 21 November 2016 can be viewed here.
Plans, Reports, Consultations and Statements
Call for Evidence: Smart, Flexible Energy System
The government and Ofgem are asking for views on developing a smarter, more flexible, and user-friendly energy system which could lower the energy bills of Great Britain’s homes and businesses. A wealth of innovative technologies and services could deliver substantial savings, improve the reliability of GB’s electricity supply and support the move to a low carbon energy system. The responses to this document, as well as wider engagement, will help shape a plan that government expect to publish in spring 2017. This plan will set out the specific actions it plans to take to remove barriers, improve price signals, catalyse innovation, and shape roles and responsibilities in the shift to a smart, more flexible energy system which meets the needs of consumers and businesses now and in the future. To learn more or respond to the call for evidence, please click here.
Autumn Statement Submission
Chancellor of the Exchequer Philip Hammond announced he will present his first Autumn Statement to Parliament on 23 November 2016. The CPA have submitted representation on behalf of the sector to government. To view the CPA’s submission please click here.
CPA Meetings with Government
CPA Chief Exec Dr Diana Montgomery and CPA Head of External Affairs Jeff May met this week with Baroness Neville-Rolfe DBE CMG, Minister of State for Energy and Intellectual Property to discuss the UK’s future energy policy for business.
CPA Marketing and Communications Executive Emma Salmon attended a speech by shadow business secretary Clive Lewis MP yesterday outlining Labour’s 21st Century Industrial Strategy.
CPA in the News
– 24Housing: Homebuilding stalls as construction output falls
Latest ONS figures showing a contraction, but counter claim suggests official data is likely to be revised upward as more statistics become available.
– Architects Journal: New government figures show drop in construction output
Construction output in the UK fell by 1.1 per cent over the last quarter (July-September), according to new data from the Office for National Statistics.
– Construction: UK Construction Output Falls By 1.1%
The ONS report states while the sectors decline was not as bad as the 1.4% fall predicted last month, the figure is still the lowest industry reading for four years.
– Construction Europe: GB post-Brexit fall
The first quarterly estimate for construction output in Great Britain from the Office for National Statistics (ONS) since Brexit (the decision to leave the European Union) has shown a decrease compared with the previous quarter.
– Glass and Glazing: Total Construction Output Declines But New Work Increases
ONS figures published on Friday show that construction output declined 1.1% in the third quarter of 2016. New work output increased during the quarter, but the fall was led by lower repair and maintenance activity.
– Refurb: Total Construction Output Declines but New Work Increases
– ONS figures published on Friday show that construction output declined 1.1% in the third quarter of 2016. New work output increased during the quarter, but the fall was led by lower repair and maintenance activity.
– The Construction Index: Construction output down 1.1% post referendum
Latest Office for National Statistics data show that a 0.3% increase in all new work, compared to the previous quarter, was more than offset by a 3.6% fall repair and maintenance work.