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modern masonry alliance Made in Britain 92 pence in every £1 spent on construction stays in the UK and that’s because we make it here! This is the first and most important point I make to all national and local politician’s every time I meet them and I would encourage you to do the same. Add to this the fact that the construction of 100,000 new homes adds 1% to GDP and you will see that no other industry can claim such a return on investment for UK PLC, furthermore no other industry can respond as quickly to deliver the jobs and growth that our economy so badly needs. So what about the short term? With a “Triple Dip Recession” a distinct possibility and a decline in the overall housing market in the last quarter of 2012 you could be forgiven for being a little depressed. My belief, however, is a little more upbeat. The 68% cut in capital grant to social housing hit hard in 2012, with many programs coming to an end and new ones shelved. I am confident that we will see something of a bounce-back in this sector with new methods of funding secured, particularly from the Bond market, which will result in more social homes built in 2013 than in 2012. We are also working closely with local authorities who will enter the affordable rent and homes for sale market in 2013, making use of land they own and accessing the very low interest rates that are available to the more secure public sector borrowers. In the private sector we will continue to see the top seven house builders dominate the market, although the “Funding for Lending” scheme and the “Loan Guarantees Scheme” may see some smaller house builders return to the market. Either way, I expect the bigger house builders to build more than last year, so in total I see the market being at least 10% better than last year. Add to this the real possibility that the Budget takes place on the same day as the CBA AGM; it will further stimulate the housing market as the Government desperately seeks ways to drive jobs and growth ahead of a 2015 General Election. One thing is for sure, “Local” is back in fashion and CBA members are in a great place to ensure that any projects that do go ahead are sourced locally, and that the local politicians really begin to get the fact that local goods and local skilled labour make for a successful economy. I would implore each of you to invite not just your local MP, but the leader of your Council to come and see what you do and understand that it is critical that it is “Made in Britain”. Demand is improving but not quickly enough. The decision by Moody’s to remove our AAA credit rating is the final warning our Chancellor will get. We are repeating our call for the funding for 25000 additional public rented homes to be built in 2013/14. Our industry stands ready to build these homes and in doing so create demand for our bricks and blocks, and create much needed jobs. A history lesson in economic recovery from previous recessions will confirm the building new homes delivers jobs and growth. www.jobsandgrowth.co.uk MMA fights on for Masonry The Modern Masonry Alliance (MMA) has led and won many fights to ensure the future success of our sector winning market share and completely reversing 10 years of growth in the use of timber frame. Our achievements include: The highest market share for many years – The masonry share of the English new homes market now stands at 92% and in the UK at 88%. Modern Methods of Construction Scrapped – The MMA successfully negotiated the removal of this requirement, which resulted in the timber frame share of the social housing market growing to 60%. Timber Frame Fire – The MMA has put the use of timber frame fires on the agenda of Local and National Government and other decision influencers, which has resulted in many more masonry specifications. Timber frame fire at Neilston Road, Paisley, 22nd February 2013. The BBC Scotland report stated that, “...part of a row of terraced houses, had yet to have their brickwork applied”. Wood First – The MMA successfully reversed Hackney’s decision to put Wood First on all developments and remain ready to do the same wherever this threat surfaces in the future. Accredited Details (ACD) – The MMA Led the fight with Government to stop a compulsory ACD Scheme being introduced that would have cost CBA members around £1,000 per construction detail. Consequential Improvements – The MMA stood up against Government and other building industry trade bodies to fight this proposal which would have seriously damaged our home extension market. This policy is now consigned to room 101! Get Britain Building – The MMA launched and drives this campaign which has put housing at the centre of all three political parties recovery program. There is now a 550 million pound “Get Britain Building Fund” and a range of schemes including “New Buy” which will deliver more homes in 2013 than we experienced in 2012. 6 www.cba-blocks.org.uk
modern masonry alliance The fight of course continues - we still have lots to do if we are to win hearts and minds on the sustainability agenda. Our “ Built to last 150 Years” message is beginning to be understood by the myriad of design influencers who believed that shipping timber half way across the world and building homes that perform badly and last 60 years was the only answer to sustainability. As we continue to erode the market share of timber frame construction across the UK, we must expect the timber industry to fight back as they have a lot at stake. The Pan-European “Wood First” Campaign comes 4 years after we launched our brand “Masonry First”. The wood industry is a global one with funding coming from Canada, Austria, Scandinavia and Russia, all of which have a lot to gain from dumping timber into the UK market as a substitute for blocks and bricks manufactured in the UK. With the UKGBC and BRE lending their support to the increased use of timber we must redouble our efforts to ensure they do not succeed. Everybody needs to understand that the loss of the brick and block manufacturing sector would be permanent and this would seriously damage the economic prospects UK Plc. It will result in adverse balance of payments, lost employment opportunities and inferior housing for future generations. Thank you for your continued support, it is imperative that we all stand together and consolidate on the market share wins that we have achieved. We will never have a better opportunity to settle the sustainability debate, once and for all, in our favour of masonry construction and the Resource Efficiency Action Plan ( REAP) will prove invaluable in achieving this. If you have not already done so please don’t forget to sign up to free news alerts at www.masonryfirst.co.uk A Guide to Government Housing Incentives 92 pence in every £1 spent on construction stays in the UK and that’s because we make it here! This is the first and most important point I make to all national and local politician’s every time I meet them and I would encourage you to do the same. Add to this the fact that the construction of 100,000 new homes adds 1% to GDP and you will see that no other industry can claim such a return on investment for UK PLC, furthermore no other industry can respond as quickly to deliver the jobs and growth that our economy so badly needs. So what about the short term? With a “Triple Dip Recession” a distinct possibility and a decline in the overall housing market in the last quarter of 2012 you could be forgiven for being a little depressed. My belief, however, is a little more upbeat. The 68% cut in capital grant to social housing hit hard in 2012, with many programs coming to an end and new ones shelved. I am confident that we will see something of a bounce-back in this sector with new methods of funding secured, particularly from the Bond market, which will result in more social homes built in 2013 than in 2012. We are also working closely with local authorities who will enter the affordable rent and homes for sale market in 2013, making use of land they own and accessing the very low interest rates that are available to the more secure public sector borrowers. In the private sector we will continue to see the top seven house builders dominate the market, although the “Funding for Lending” scheme and the “Loan Guarantees Scheme” may see some smaller house builders return to the market. Either way, I expect the bigger house builders to build more than last year, so in total I see the market being at least 10% better than last year. Add to this the real possibility that the Budget takes place on the same day as the CBA AGM; it will further stimulate the housing market as the Government desperately seeks ways to drive jobs and growth ahead of a 2015 General Election. One thing is for sure, “Local” is back in fashion and CBA members are in a great place to ensure that any projects that do go ahead are sourced locally, and that the local politicians really begin to get the fact that local goods and local skilled labour make for a successful economy. I would implore each of you to invite not just your local MP, but the leader of your Council to come and see what you do and understand that it is critical that it is “Made in Britain”. Demand is improving but not quickly enough. The decision by Moody’s to remove our AAA credit rating is the final warning our Chancellor will get. We are repeating our call for the funding for 25000 additional public rented homes to be built in 2013/14. Our industry stands ready to build these homes and in doing so create demand for our bricks and blocks, and create much needed jobs. A history lesson in economic recovery from previous recessions will confirm the building new homes delivers jobs and growth. www. jobsandgrowth.co.uk Alarm Bells continue to sound The simple fact that timber burns very aggressively means that there is a high probability of a total building loss and risk to life as a result of a major fire. Recently a new £4.5 million Environmental Centre in Bradford under construction using cross-laminated timber burnt down, proving that this was far from being “Britain’s most Sustainable building “which is how the owners described it. In Wolverhampton a large block of owneroccupied flats built using SIP’s panels burnt to the ground for the second time in 5 years. We continue to work hard with Senor Fire Fighters, the Fire Brigade Union, Insurance Companies and Government to prevent the use of timber frame, particularly in high rise buildings and care homes. We are also producing a design guide to fire detailing in masonry structures as part of our strategy to prevent loss of life and ensure our buildings are constructed from non-combustible masonry built to last 150 years. www.cba-blocks.org.uk 7
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