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news<br />

UK housing market faces challenging 2019, warn experts<br />

The UK housing market is unlikely to see much change in 2019 with a continuation of weakening sales activity, according to the RICS UK<br />

Residential Housing Forecast 2019. The UK housing market has lacked impetus in 2018, having continued to struggle with a lack of homes on<br />

estate agents books; affordability issues; uncertainty caused by Brexit; and prospective interest rate rises.<br />

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<br />

significantly below the 1.7million high reached in 2006. Given the obstacles in the current market it is anticipated that activity will weaken further.<br />

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<br />

mid-2019. As such, the RICS Housing Forecast 2019 suggests prices will neither grow nor fall in the near future (0%).<br />

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<br />

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<br />

record lows. The number of new properties being listed for sale has fallen consistently, and in November, almost half of survey participants reported<br />

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<br />

months will see a marked increase in supply across the second-hand market.<br />

Saint-Gobain acquires SIG<br />

Roofspace to deliver more<br />

off-site manufactured<br />

solutions for housebuilders<br />

Saint-Gobain UK & Ireland completed the acquisition of SIG<br />

Roofspace Solutions on the 14th December 2018.<br />

The business, set-up in 2008 provides a turn-key panelised roofing<br />

and room-in-roof solution to house builders.<br />

Mike Chaldecott, Saint-Gobain UK & Ireland CEO said "We're delighted<br />

to welcome Roofspace to Saint-Gobain. They are a great business that<br />

provides solutions to customers that saves them time and streamlines<br />

the construction process. We know that the construction industry has<br />

to be more efficient, more productive, more innovative and embrace<br />

off-site manufacturing. Roofspace are already offering customers<br />

these benefits and have delivered roofs for over 2,500 new build<br />

homes in the last year".<br />

"Roofspace further accelerates our capability to serve the rapidly<br />

expanding off-site manufacturing sector adding to our expertise which<br />

already includes our Pasquill business, and their timber roof-trusses,<br />

Scotframe's timber-frame houses and Saint-Gobain steel-frame<br />

systems".<br />

SIG Roofspace Solutions will now be known as Roofspace.<br />

Slower rise in commercial<br />

work weighs on construction<br />

growth at the end of 2018<br />

UK construction firms indicated a disappointing end to 2018 as<br />

business activity growth eased to a three-month low and new orders<br />

expanded at a relatively subdued pace. The main bright spot was a<br />

sustained rebound in civil engineering activity, which rose at the<br />

fastest pace since May 2017.<br />

Business optimism also picked up in December. The degree of<br />

confidence was the highest since last April and well above the near<br />

six-year low seen in October. Survey respondents cited hopes of a<br />

boost to growth from work on big-ticket transport and energy<br />

infrastructure projects in 2019.<br />

At 52.8 in December, down from 53.4 in November, the headline<br />

seasonally adjusted HIS Markit/CIPS UK Construction Total Activity<br />

Index posted above the crucial 50.0 no-change value for the ninth<br />

consecutive month.<br />

Anecdotal evidence suggested that subdued demand conditions<br />

were the main factor behind softer output growth in December.<br />

There were also some reports that unusually wet weather had acted<br />

as a brake on construction work.<br />

Intelligent systems will help UK transition to clean and<br />

affordable energy<br />

New small-scale renewable electricity providers to be guaranteed payment for excess electricity supplied to the grid under new government<br />

proposals – protecting consumers from unfair costs associated with current scheme. Plans for Smart Export Guarantee could build a bridge to the<br />

smarter energy system of the future, which can help unlock technological innovations like home energy storage and more efficient electric vehicle<br />

charging. Households and businesses installing new solar panels will be guaranteed payment for power provided back to the grid under government<br />

proposals set out this week to unlock the smart energy systems of the future- an important upgrade to the current Feed-in Tariffs scheme.<br />

The proposed ‘Smart Export Guarantee’ (SEG) would replace the existing ‘Feed-in Tariff’ scheme (FIT), with electricity suppliers paying new small-scale<br />

energy producers for excess electricity from homes and businesses being put back into the energy grid. The new scheme could create a whole new<br />

market, encouraging suppliers to competitively bid for this electricity, giving exporters the best market price while providing the local grid with more<br />

clean, green energy, unlocking greater choice and control for solar households over buying and selling their electricity.<br />

4<br />

Feb 2019 <strong>M11</strong>

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