Lendlease's £1.9bn Smithfield Birmingham scheme has been approved, with initial work set to commence later this year. The project will transform the area, creating a vibrant mixed-use development. In other news, an acquisitive employee-owned building contractor has seen sales jump 38% to £139m, with plans to buy another 200 businesses by 2030. The firm is also offering enhanced leave benefits to its workers. A major work package on a transport upgrade is being overseen by the Griffiths Farrans JV, while tunnels under High Holborn in London are set to become a cultural exhibition space. Clarion housing association is set to receive 483 new flats, and a deal has been sealed on the Paisley Grammar School project in Renfrewshire. However, the industry has also faced challenges, with more than 500 suppliers and subcontractors left holding unpaid bills following a company collapse. Heavy rain and strong winds have also been blamed for a sharp fall in construction activity in April. Despite this, many firms are reporting strong performance, with one group seeing its operating margin jump from 3% to 5% in a record year.
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Excellent summary by Neil. A really simple analysis of the situation and highlighting the 15,000+ people who are being denied somewhere to live as a result of Government policy. More to follow...
I am sure there will be plenty written about the Housing (Scotland) Bill and posted on here. So in the meantime, here is a list of all the BtR schemes I can think of either submitted for planning, or with consent, or under construction in both Edinburgh and Glasgow. The list does not include what is now commonly known as “single-family”. Neither does it include for any residential developments by RSL’s, etc. In this context “consent” means planning permission is in place or a scheme has “minded to grant” status. The list excludes any PAN’s and also completions and as I have compiled the list of schemes off the top of my head, there will be a few missing too. The numbers might be a wee bit out and in the case of Edinburgh should also exclude any “affordable content”. I will be happy to make any corrections. EDINBURGH In for planning: Salamander Street – 62 Units West Town – 700 units (assumed an arbitrary 10% of the 7,000 new homes proposed in the PPiP will be for BtR) Total in for planning - 762 units Consent/Minded to Grant: Meadowbank – 277 Marionville – 122 Beaverhall – 153 Fountainbridge – 278 New Mart Road – 294 Edinburgh Park – 643 Total with consent – circa 1,767 units. Under Construction: Dockside – 338 Bonnington – 348 Steads Place – 110 New Town North – 210 (have included here as there is a big hole in the ground) Fountainbridge (Vastint) – 189 Moda (final phase) – 124 Builyeon Road (South Queensferry) – 185 Total under construction – approx. 1,504 units GLASGOW In for planning: Anniesland, Herschell St – 123 Craighall Road – 60 Collegelands – 241 Elmbank Gardens/Bath Street - ? Total in for planning – 424 units + Consent/Minded to Grant: Goods Yard (High Street) - 820 Beith Street – 424 Houldsworth Street – 34 Lancefield Quay – 709 Anderston Quay – 503 Dundas Square – 357 Buchanan House – 518 Finnieston – 390 Shawlands – 329 Yorkhill Quay - ? Merchant Quarter - ? Total with consent – 4,084 units + Under Construction: Glasgow Harbour – 342 Holland Park (Pitt St) – 433 Candleriggs – 346 Total under construction – 1,121 units Total in for planning or with consent = 7,037 units, plus the PPiP applications/consents, so maybe 7,500 – 8,000 units in total. At the Scottish average of 2.11 persons per household, 7,500 - 8,000 units would represent new housing for around 15,825 – 16,880 people. To put this number into context, it is about the equivalent of a town the size of Blantyre, or Broxburn, or Penicuik. Some 7,500 - 8,000 units that otherwise could be in a pretty decent position to be delivered over a 2 to 5 year period. A reminder: both Edinburgh and Glasgow declared a Housing Emergency in November 2023. I've gone on long enough, so I'll leave you with a picture of Patrick. He's a budgerigar (Melopsittacus undulatus). He can mimic human speech. A warning though - he has a tendency to come out and say really stupid things.
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I am sure there will be plenty written about the Housing (Scotland) Bill and posted on here. So in the meantime, here is a list of all the BtR schemes I can think of either submitted for planning, or with consent, or under construction in both Edinburgh and Glasgow. The list does not include what is now commonly known as “single-family”. Neither does it include for any residential developments by RSL’s, etc. In this context “consent” means planning permission is in place or a scheme has “minded to grant” status. The list excludes any PAN’s and also completions and as I have compiled the list of schemes off the top of my head, there will be a few missing too. The numbers might be a wee bit out and in the case of Edinburgh should also exclude any “affordable content”. I will be happy to make any corrections. EDINBURGH In for planning: Salamander Street – 62 Units West Town – 700 units (assumed an arbitrary 10% of the 7,000 new homes proposed in the PPiP will be for BtR) Total in for planning - 762 units Consent/Minded to Grant: Meadowbank – 277 Marionville – 122 Beaverhall – 153 Fountainbridge – 278 New Mart Road – 294 Edinburgh Park – 643 Total with consent – circa 1,767 units. Under Construction: Dockside – 338 Bonnington – 348 Steads Place – 110 New Town North – 210 (have included here as there is a big hole in the ground) Fountainbridge (Vastint) – 189 Moda (final phase) – 124 Builyeon Road (South Queensferry) – 185 Total under construction – approx. 1,504 units GLASGOW In for planning: Anniesland, Herschell St – 123 Craighall Road – 60 Collegelands – 241 Elmbank Gardens/Bath Street - ? Total in for planning – 424 units + Consent/Minded to Grant: Goods Yard (High Street) - 820 Beith Street – 424 Houldsworth Street – 34 Lancefield Quay – 709 Anderston Quay – 503 Dundas Square – 357 Buchanan House – 518 Finnieston – 390 Shawlands – 329 Yorkhill Quay - ? Merchant Quarter - ? Total with consent – 4,084 units + Under Construction: Glasgow Harbour – 342 Holland Park (Pitt St) – 433 Candleriggs – 346 Total under construction – 1,121 units Total in for planning or with consent = 7,037 units, plus the PPiP applications/consents, so maybe 7,500 – 8,000 units in total. At the Scottish average of 2.11 persons per household, 7,500 - 8,000 units would represent new housing for around 15,825 – 16,880 people. To put this number into context, it is about the equivalent of a town the size of Blantyre, or Broxburn, or Penicuik. Some 7,500 - 8,000 units that otherwise could be in a pretty decent position to be delivered over a 2 to 5 year period. A reminder: both Edinburgh and Glasgow declared a Housing Emergency in November 2023. I've gone on long enough, so I'll leave you with a picture of Patrick. He's a budgerigar (Melopsittacus undulatus). He can mimic human speech. A warning though - he has a tendency to come out and say really stupid things.
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Property and construction news….. Telford in Shropshire has been named as one of the most affordable places to rent in England. The list of eight places was compiled by property website iLiveHere. It was the only place in the Midlands to make the list. Two tall accommodation blocks of seven and fifteen storeys could be built at 52 Gas Street creating 161 apartments. Should the plans be approved the buildings would feature cycle parking, a cinema, co-working space, a lounge and a rooftop terrace. The scheme is called Gather and Soul. The £4.5m refurbishment at Centre City located on Hill Street/Smallbrook Queensway, has started. The building will include a new café, co-working space, contemplation space and lounge. The building work is expected to be completed by the New Year. Tenants include Citizens Advice, Hitachi, and The Ministry of Justice. The Prologis Park at Ryton in Coventry is now at full capacity with Furnolic (which trades as Songmics) agreeing a deal on the final unit. The international e-commerce business has signed a ten-year lease. DHL and Jaguar Land Rover are also on the Park. According to Zoopla, property values are likely to rise more slowly than incomes over the next couple of years. The company said the average house cost is c.£264k but according to its calculations, the affordable price is c.£245k making the average house c.£19k over-valued. #property #construction #offices #housing
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One of the UK’s fastest growing developers of much-needed affordable housing and Extra Care schemes has secured a prestigious business prize. Keon Homes Limited, which has gone from a standing start in 2019 to £40m turnover this year, beat off tough competition from Bond Wolfe, Cubo, Estilo Interiors, Potter Space. and The Harrogate Group to win the ‘Property Business of the Year’ title at the Business Desk West Midlands Awards. The Burntwood-based company impressed the high-profile judging panel with its ability to unlock complex sites and solve critical housing stock issues by forging strategic partnerships with several housing associations, including Midland Heart, Citizen, Bromford and GreenSquareAccord. It has also secured two notable firsts, breaking into the difficult to enter marketplace of Extra Care schemes with work starting on sites in Lichfield and Newport, with one in Shrewsbury coming also soon. This represents over £60m of income for the business. https://lnkd.in/evpZ9WFe #news #magazine #b2bmarketing #newsletter #emailmarketing #manufacturing #engineering #automation #bannerads
Keon Homes take top ‘property’ prize at business awards - Engineering Update
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Breaking news: 🌟Major Regeneration deal in York Central Attracts Investors Homes England and Network Rail Property have partnered with McLaren Property and Arlington Real Estate for a major urban regeneration project in York Central. This initiative will see the development of 2,500 new homes, 20% of which will be affordable, along one million square feet of office, retail, and hospitality space. The project also includes upgrades to York Railway Station and enhancements to the National Railway Museum. York Central has the potential to create up to 6,500 jobs and boost York's economy by 20%, adding £1.1 billion GVA to the city. The development aims to become a significant employment hub in northern England. The project features a new 17-acre urban park, with 50% of the area designated as green space, and vibrant public squares connecting the development to the surrounding neighborhoods and York City Center. Infrastructure works are already underway, including the construction of 2km of new roads, bus lanes, footpaths, cycleways, and two new bridges. Link: https://lnkd.in/eEruYNKa Stay tuned for more updates on this exciting development! #York #Regeneration #InvestmentOpportunity #UKProperty
Development agreement signed to deliver £1.1 billion York Central regeneration
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Less parking more housing? The Labour Government have set a target of 1.5 million new homes in five years. That will require building 50% more than the previous government over the same period. Big ask. #NewZero pledges demand the right housing....in the right places #densification. Might plans for Midway car park in Newcastle under Lyme, Staffordshire offer a template for one of the radical new delivery approaches our housing challenges demand? . Developer Capital&Centric are seeking to turn this 1960s-designed car park into a "contemporary urban neighbourhood" with 100 one, two and three-bed apartments plus social hub with a gym and 'mini-cinema'. It is part of three sites being floated with the borough council for redevelopment to "re-boot" town centre spaces using £35m of government Future High Street funding. Towns and cities across the UK have old, end of life MSCPs in their centres. Would be interesting to hear from expert architects and structural engineers if this conversion concept could be applied more widely to end-of-life parking structures, or is it a pipe dream? Stripe Consulting, Polly Church, Fatkin, Russell Simmons, Chris Whapples #transport and #housing
Newcastle under Lyme: Apartment plans for Brutalist car park
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Graham Secures £69m Stratford Flats Project – A Boost for SMEs in London’s Construction Sector!🏗️🏙️ Graham has landed a £69m contract to develop a new residential project in Stratford, East London. This project will bring nearly 200 new flats to one of London’s most dynamic areas, contributing to Stratford’s continued growth as a residential and cultural hub. With a strong commitment to working alongside SMEs, this development provides an exciting opportunity for smaller contractors and suppliers to play a crucial role in delivering high-quality housing. This project emphasises the role of SMEs in driving innovation, flexibility, and local expertise in construction. As Graham collaborates with smaller firms, it opens the door for a range of specialised services—from interior fit-outs to sustainable materials sourcing—enabling SMEs to leave a lasting impact on the Stratford skyline. This collaboration will create jobs across multiple trades, driving growth within the SME construction community and creating valuable opportunities for local tradespeople and specialists. https://lnkd.in/ecwfsFui If you’re an SME looking to take part in major projects like this or want to build your team with top-tier talent, I can connect you with the right opportunities to help you grow in this booming sector. #StratfordFlats #SMEOpportunities #ResidentialDevelopment #LondonConstruction #JobCreation #Recruitment #ConstructionJobs #Housing #StaffingSolutions #CareerGrowth
Graham wins £69m London Stratford flats job
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Questions over mega-projects as Lendlease steps back from UK construction #Australian #construction and #developer giant Lendlease is to pull back from its #UK construction work, raising questions about a series of mega-schemes on its books The international group is expected to sell off its UK and US contracting operations by the end of next year, as well as some of its assets here and elsewhere around the globe, and refocus on its Australian home market. The 18-month #exitstrategy comes just weeks after #Lendlease’s UK arm announced its profits had dropped by more than a third in the year up to June 2023, and in the wake of a lacklustre four years which has seen the company’s stock price fall by nearly half #globally. Explaining why it was pulling out of its #overseas markets, the company described them as a ‘#drag’ on #shareholder returns. However, it is understood Lendlease will maintain its UK investment functions. In an announcement made yesterday (27 May), the company said it was looking for an ‘orderly capital release’ from overseas development. Lendlease said it would be ‘revising land management agreements’ on several massive schemes. For instance, where it is master developer, the company may take schemes through to planning but then sell plots on to other developers. These would include its £1.9 billion plans for #Smithfield in #Birmingham, which were resubmitted in January. The 17ha project has been drawn up by Prior + Partners along with New York High Line lead James Corner Field Operations, along with David Kohn Architects, Stirling Prize-winners dRMM and Haworth Tompkins and up-and-coming local practices Intervention Architecture and Minesh Patel Architects. In October the AJ reported Lendlease had been forced to make key design changes to its original planning #application lodged a year ago, following objections from Historic England over the scheme’s potential harm to the historic cityscape. Other projects on the developer’s revisions list – schemes on which Lendlease said it would need to satisfy ‘various obligations such as planning, remediation, etc to maximise value capture’ – include the delayed oversite development at London’s Euston station and the £3.5 billion #Silvertown development. The scheme in the Royal Docks has also been led by Prior + Partners alongside buildings by AHMM, dRMM, Pollard Thomas Edwards, Maccreanor Lavington and Gort Scott with OMMX. Speaking to the AJ’s sister title Construction News earlier today, Lendlease group chief executive and managing director Tony Lombardo said the company was in the preliminary stages of preparing the UK business to bring to market. He said: ‘We think the UK and US are very good ongoing businesses and we feel we will be able to find the buyers for both – we are assuming over that next 18-month period [that we will] have executed transactions.’
Questions over mega-projects as Lendlease steps back from UK construction
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With over 542 existing Mill buildings in Greater Manchester alone, and viable acquisitions for new build schemes becoming ever more difficult (with land costs still not reflective of increasing tender price inflation (forecasts 2024 @ 2.57% / 2025 @ 2.91% / 2026 @ 3%), recent building regulations (circa £5,000 - £7,000 per unit) and building safety act requirements (circa £2.5/ft2 excluding programme implications); there is a key opportunity to repurpose these buildings into both residential / commercial developments whilst maintaining their heritage and cultural significance. There is a sustainability benefit in the form of less carbon emissions (as generally the target would be to utilise as much of the existing frame where possible) albeit it is difficult/costly to obtain high EPC ratings. Grant funding opportunities will also be higher. Each existing Mill will carry different risks, however with experience delivering over £100m of such developments (including Talbot Mill below); we have included some key lessons learnt: #DueDiligence before purchase: It is key that you undertake as much investigation works as possible to understand structural conditions/contamination/constraints. Some buildings may have been looked after over the years (and even these will require repairs/upgrades), however there is a chance that some will be in need of significant structural remedial works that simply are not viable. #RealisticBudget: We would recommend that a proper detailed cost plan is carried out from an early stage with a risk register so all clients can understand the relevant risks with a clear plan to manage, mitigate, or transfer. This will enable clients to run different appraisal scenarios. #Realisticprogramme: Unfortunately in a lot of cases, Mill refurbishments are not a simple fit out, and will require timely investigation works, enabling works and shell remedial works along with tight constraints in city centres. Programmes need to be realistic from day one. We have found undertaking enabling works early helps get a higher quality contractor on board as the scheme become de-risked. #Other: Planning/listed status/party wall requirements should be carefully reviewed in relevant locations. All can become very costly, for example in Manchester where anodised aluminium is a general requirement, will be 15-30% more expensive (depending upon type) than metallic PPC which might be acceptable in Salford / Sheffield etc. This needs to be priced accordingly. #Procurement: It is critical that the right parties are appointed with capability/experience delivering schemes of this nature or else it will potentially lead to significant cost over runs (as they don't understand the construction detail), programme delays or in some cases insolvencies. If you need any support/advice delivering schemes of this nature please get in touch. Zerum #costmanagement #existingmills #repurposing
CR Construction (UK) wins £34m historic mill restoration
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Property and construction news….. Proposals for 1,300 apartments and commercial space around the River Rea and to the south of Moseley Street, have been approved. The scheme will open up the largely hidden river with new pedestrian routes and public spaces. The developers are Dandara Living. A building that was once home to one of the world’s largest glass makers Chances, has been placed on the Victorian Society’s endangered buildings list. Located in Smethwick, Birmingham, the company used to employ 3.5k people. Glass was supplied across the world including the White House in the USA, and the Houses of Parliament in London to name just two examples. It is hoped the building will be restored providing houses, business space and a heritage centre - a capital grant application has been submitted to West Midlands Combined Authority. According to representatives from Knight Frank, Savills, and St Mowden Homes, the best places to purchase a home in the Midlands is Droitwich, Birmingham’s Gun Quarter, Jewellery Quarter, Lichfield, Longbridge, Long Marston, Solihull, Sutton Coldfield and Worcester. According to Nationwide, house prices increased by 0.4%. The average UK house price is £264,249 (April was £261,962). According to GetAgent - an estate agent comparison site, Birmingham is currently the third hardest place to sell a house (Leicester and London were ranked one and two). At the opposite end of the scale Sheffield has the most active market. The company’s research findings stated that only 14.3% of properties in England found a buyer within 30 days. Wavensmere Homes has shared proposals for its £150m Canalside South development in Wolverhampton. Subject to planning consent, 520 homes will be constructed with a range of commercial amenities in dis-used railway arches. 100 new jobs will be created and a public consultation runs until 28 June. #property #construction #business #housing
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