a.aa MMC M11 52pp Web

news
UK housing market faces challenging 2019, warn experts
The UK housing market is unlikely to see much change in 2019 with a continuation of weakening sales activity, according to the RICS UK
Residential Housing Forecast 2019. The UK housing market has lacked impetus in 2018, having continued to struggle with a lack of homes on
estate agents books; affordability issues; uncertainty caused by Brexit; and prospective interest rate rises.
Looking ahead, it is unlikely that sales will grow in 2019. In the past two years, sales activity has declined, and annual completed transactions remain
significantly below the 1.7million high reached in 2006. Given the obstacles in the current market it is anticipated that activity will weaken further.
As sales activity continues to falter, house price growth will continue to fade in the first half of the year and is expected to come to a standstill by
mid-2019. As such, the RICS Housing Forecast 2019 suggests prices will neither grow nor fall in the near future (0%).
The stagnation of house prices is underpinned by the lack of new properties being listed for sale. In the second-hand market, not enough properties
have been listed to replenish those sold. This has been evident in the RICS data throughout 2018, as average stock levels remain near all-time
record lows. The number of new properties being listed for sale has fallen consistently, and in November, almost half of survey participants reported
the number of market appraisals undertaken over the month was down on the year before. All these indicators suggest it is unlikely that the coming
months will see a marked increase in supply across the second-hand market.
Saint-Gobain acquires SIG
Roofspace to deliver more
off-site manufactured
solutions for housebuilders
Saint-Gobain UK & Ireland completed the acquisition of SIG
Roofspace Solutions on the 14th December 2018.
The business, set-up in 2008 provides a turn-key panelised roofing
and room-in-roof solution to house builders.
Mike Chaldecott, Saint-Gobain UK & Ireland CEO said "We're delighted
to welcome Roofspace to Saint-Gobain. They are a great business that
provides solutions to customers that saves them time and streamlines
the construction process. We know that the construction industry has
to be more efficient, more productive, more innovative and embrace
off-site manufacturing. Roofspace are already offering customers
these benefits and have delivered roofs for over 2,500 new build
homes in the last year".
"Roofspace further accelerates our capability to serve the rapidly
expanding off-site manufacturing sector adding to our expertise which
already includes our Pasquill business, and their timber roof-trusses,
Scotframe's timber-frame houses and Saint-Gobain steel-frame
systems".
SIG Roofspace Solutions will now be known as Roofspace.
Slower rise in commercial
work weighs on construction
growth at the end of 2018
UK construction firms indicated a disappointing end to 2018 as
business activity growth eased to a three-month low and new orders
expanded at a relatively subdued pace. The main bright spot was a
sustained rebound in civil engineering activity, which rose at the
fastest pace since May 2017.
Business optimism also picked up in December. The degree of
confidence was the highest since last April and well above the near
six-year low seen in October. Survey respondents cited hopes of a
boost to growth from work on big-ticket transport and energy
infrastructure projects in 2019.
At 52.8 in December, down from 53.4 in November, the headline
seasonally adjusted HIS Markit/CIPS UK Construction Total Activity
Index posted above the crucial 50.0 no-change value for the ninth
consecutive month.
Anecdotal evidence suggested that subdued demand conditions
were the main factor behind softer output growth in December.
There were also some reports that unusually wet weather had acted
as a brake on construction work.
Intelligent systems will help UK transition to clean and
affordable energy
New small-scale renewable electricity providers to be guaranteed payment for excess electricity supplied to the grid under new government
proposals – protecting consumers from unfair costs associated with current scheme. Plans for Smart Export Guarantee could build a bridge to the
smarter energy system of the future, which can help unlock technological innovations like home energy storage and more efficient electric vehicle
charging. Households and businesses installing new solar panels will be guaranteed payment for power provided back to the grid under government
proposals set out this week to unlock the smart energy systems of the future- an important upgrade to the current Feed-in Tariffs scheme.
The proposed ‘Smart Export Guarantee’ (SEG) would replace the existing ‘Feed-in Tariff’ scheme (FIT), with electricity suppliers paying new small-scale
energy producers for excess electricity from homes and businesses being put back into the energy grid. The new scheme could create a whole new
market, encouraging suppliers to competitively bid for this electricity, giving exporters the best market price while providing the local grid with more
clean, green energy, unlocking greater choice and control for solar households over buying and selling their electricity.
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