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Association
Alarmed at Brown's Abolition of Service Delivery Agreements
The
Construction Products Association
has welcomed the Government's continued commitment to increased capital
expenditure and the Chancellor's confirmation that the 2004 Spending Review
will 'lock in the step change in funding for key public services'.
However as the next Spending Review approaches, the Association is alarmed
at the planned abolition of Service Delivery Agreements and other controls
including the ring fencing of funds and monitoring of spending agencies'
performance.
Commenting on the Chancellor's Statement, Allan Wilén, Economics
Director, said: 'Without a clear understanding of how and where
the additional funds committed by the Government are being spent, it will
be hard to ensure or even know whether the extra resources are delivering
real improvements to public services and the built environment.'
Turning to other areas covered by the Report, Wilén said:
'We welcome Gordon Brown's announcements on the extension of climate change
negotiated agreements and the development of the EU Emissions Trading
Scheme. However, the Association is disappointed that the Chancellor
has failed to develop a number of the other specific measures proposed
in its Pre Budget submission to support investment in the built environment,
and to improve industry competitiveness'
Other Pre Budget announcements welcomed by the Association included:
• First year capital allowance of 100% on renovation of commercial
properties in two thousand Enterprise Areas
• A commitment to reform or repeal 147 regulations
• A rise in the audit turnover threshold to £5.6 million
• Reform of the VAT flat rate scheme
• Simplification of the definition of R&D for tax credit purposes
• Extension of the current 80% relief on the aggregates levy in Northern
Ireland
Web: http://www.constprod.org.uk
Griffiths
Tells How the North West was Won
Construction
Minister, Nigel Griffiths, said he was delighted at the turn-out from
building firms to a series of Quality Mark Scheme
trade launches in the North West and how this would form a blueprint for
the future.
Nearly 700 people attended nine launch evenings in the North West of England
during October and November, representing over 540 firms. Of these, 72%
(391 firms) signed 'expression of interest' forms signalling they wanted
more information on the Scheme and were keen to take the first step in
getting assessed to enjoy the benefits of full membership. Forms are still
being posted and faxed in to the Scheme's call centre, boosting those
numbers even further.
The launch events themselves, at prestigious venues in big population
centres including Manchester, Liverpool, Bolton, Chester, Carlisle, Wigan,
Blackpool and Preston, were unique in the way a Government-backed Scheme
communicated with a business audience.
Actors were drafted in to dramatise realistic scenes featuring customer
confusion over how to access good builders, contractors overcoming initial
doubts about Scheme membership and how a site visit by an assessor works.
The events were split into two parts. The first half featured an MC introducing
the evening and the various elements as they unfolded in the multi-media
presentation, the scenes dramatised by the actors, intercut with film
footage of interviews with Quality Mark contractors, customers and the
Construction Minister.
After a coffee break interlude, the second half featured up to ten 'advice
clinics' with Scheme advisors hosting small workshops where they answered
questions from contractors and told how Quality Mark can benefit individual
firms.
Nigel Griffiths said:
'I think the quality of the events we staged was outstanding and the response
from firms was very positive indeed. We undoubtedly have a strong template
in place to be refined for regional variations, which will stand us in
good stead for our next regional campaign.'
Designed with the home improvement market in mind, Quality Mark works
by placing contact details of accredited firms, which reach the required
standard, on a single national register, accessed free-of-charge through
a national call centre or via the internet at http://www.qualitymark.org.uk.
Berkeley
makes Record first half Profit
Berkeley
Group,
the up-market housebuilder and urban regenerator, has made a record interim
pre-tax profit of £116.8m.
Announcing the latest results recently, managing director Tony Pidgley
said: 'We have maintained our forward sales position at £875m and
improved operating efficiencies.' He added: 'The property market in the
UK has been uncertain, especially in our core markets of London and the
South East.'
During the period, Berkeley sold over 2,000 houses at an average selling
price of £271,000. The average price in the same period last year
was higher at £285,000. However, operating margins moved ahead to
18.9%.
Turnover (six months to 31st October) was £635m. Berkeley's former
Crosby business has been sold to its management team led by Geoff Hutchinson.
Average
Construction Fine Drops
The
average fine handed out by the Health & Safety
Executive (HSE) to construction firms in the year to 31st March
2003 has fallen to £5,698. In the year to 31st March 2002 the average
fine was £7,450.
The average construction fine is less than the all-industry average of
£6,040, which has also dropped year-on-year from £8,234 in
2001/02.
The number of construction convinctions dipped slightly from 442 in 201/02
to 433 in 2002/03.
A total of 779 improvement notices were issued in 2002/03, a worrying
32% increase from the previous year's total of 588. The number of
prohibition notices increased by 25% from 2,219 to 2,788.
Health & Safety Commission chair Bill Callaghan said: 'The marked
increase in improvement and prohibition notices shows the HSE is pursuing
[its] targets. However society is poorly served by inadequate fines that
fail to mark the seriousness of health and safety convictions. Above all
it is unfair to the businesses that are managing risks and safeguarding
the health and safety of their workforce.'
Griffiths
Launches New Quality Mark Tabloid - Red Top gets the Message Across to
North West Builders
Construction
Minister, Nigel Griffiths, has launched a new tabloid newspaper to let
firms in the North West know more about the Government-backed Quality
Mark Scheme of approved builders and associated trades.
Written exclusively for those companies, it spells out how membership
of the Quality Mark Scheme can help improve their business.
A total of 18,000 copies were posted to firms in the region with a covering
letter from the Construction Minister as part of a second mailshot to
companies, inviting them to attend trade launches where they can learn
all about the Scheme and how they can benefit individually.
Called The Standard, and presented in a traditional 'red top' tabloid
style, the paper gives details of the launch evenings, explains how the
Scheme works, details the straightforward assessment process, pinpoints
its profit-boosting and money-saving opportunities and features interviews
and pictures of firms who have already joined the Scheme and are enjoying
its benefits.
Nigel Griffiths said: 'Launching The Standard for Quality Mark's potential
next wave of members in the North West has proved an informative and accessible
way to get useful information about the Scheme direct to their homes and
businesses.
'It has given them the opportunity to study the publication at their leisure
and gain useful insights into Quality Mark and be armed with knowledge
of its key principles before attending the events. It means that the vast
majority of those going along on the night have already established that
Quality Mark is going to be helpful for them.'
Designed with the home improvement market in mind, Quality Mark works
by placing contact details of accredited firms, which reach the required
standard, on a single national register, accessed free-of-charge through
a national call centre or via the internet at http://www.qualitymark.org.uk
Do
your Customers Think you're an Angel?
Jewson
has joined forces with The Daily Mirror and Vauxhall Commercial Vehicles
to search for Britain's best builders - or as Jewson likes to call them,
'Builders from Heaven'.
'We want to challenge the 'builders from hell' reputation that some TV
programmes have exaggerated and talk about the good guys for a change.'
says the company.
'So please join us and tell your customers about it. They can nominate
you or you can nominate a colleague - the more nominations we have, the
more it will prove what great builders our industry has, so don't be shy!
'We'd like you to take into account, build quality, service, exceeding
customer's expectations - anything that sets a high standard.
'Give us a hand and help Jewson promote brilliant builders to the nation.
Not only will it be good for you, it will also encourage people into the
industry and make sure we have quality builders for years to come.'
Web: http://www.buildersfromheaven.co.uk
New
Orders Dropped in September
New
construction orders dropped 18% year-on-year in September from £3bn
to £2.5bn, according to the latest data from the
Department of Trade & Industry.
Of the six sectors, three of the largest posted drop-offs: private housing
slipped just 0.8% to £723m; private commercial fell back 25% to
£775m; and infrastructure slumped 64.5% to £196m (the sector's
lowest monthly total since December 2001).
Other public was static at £510m, while private industrial increased
13% to £221m. Public housing improved 55% to £104m.
In the year-to-date, the total stands at £25.6bn, ahead of the first
nine months of 2002 total of £25bn.
New orders September 2003 (September 2002 in brackets)
* Public housing £104m (£67m)
* Private housing £723m (£729m)
* Infrastructure £196m (£552m)
* Other public £510m (£510m)
* Private industrial £221m (£196m)
* Private commercial £775m (£1,041m)
* Total £2,530m (£3,095m)
Construction
Output - September Figures
The
total volume of construction output in the year to the second quarter
of 2003 rose by six per cent compared to the previous year. Overall new
work rose over the same period, despite a decrease in the infrastructure
and private industrial sectors. Repair and maintenance rose, with increases
in all sectors except public housing R&M. Output in the second quarter
of 2003 rose by five per cent compared to the first quarter of 2003 in
volume terms and by eight per cent in current prices.
The total volume of new work in the year to the second quarter of 2003
was seven per cent higher compared with the previous year and was three
per cent higher in the second quarter compared with the previous quarter. The
total volume of repair and maintenance work was five per cent higher in
the year to the second quarter of 2003 compared with the previous year,
and rose by eight per cent in the second quarter of 2003 compared to the
previous quarter.
New private housing work in the year to the second quarter of 2003 was
17 per cent higher compared with the previous year and the second quarter
of 2003 was one per cent higher than the previous quarter. New work
in the public housing sector in the year to the second quarter of 2003
was 10 per cent higher (on a small base figure) compared with the previous
year and the latest quarter was eight per cent higher than the previous
quarter. New infrastructure output in the twelve months to the second
quarter of 2002 was five per cent lower compared with the previous year,
and the second quarter of 2002 fell by one per cent compared with the
previous quarter.
New construction work in the private industrial sector in the year to
the second quarter of 2003 was six per cent lower compared with the previous
year, and was unchanged in the second quarter compared with the previous
quarter. New private commercial output in the year to the second
quarter of 2003 increased by five per cent compared to the previous year
and rose by three per cent in the second quarter of 2003 compared to the
previous quarter. New work in the public non-housing sector (excluding
infrastructure) in the year to the second quarter of 2003 rose by 23 per
cent compared to the previous year and the second quarter of 2002 rose
by 13 per cent compared with the previous quarter.
Housing repair and maintenance work (including improvement work) in the
public sector was two per cent lower in the year to the second quarter
of 2003 compared with the previous year but was 19 per cent higher in
the most recent quarter compared with previous quarter. Housing repair
and maintenance work in the private sector in the year to the second quarter
of 2003 was 12 per cent higher compared with the previous year and was
four per cent higher in the second quarter compared to the previous quarter.
Repair and maintenance work in the public non-housing sector in the year
to the second quarter of 2003 was unchanged compared with the previous
year, but was five per cent higher in the most recent quarter compared
with the previous quarter. Repair and maintenance work in the private
non-housing sector in the year to the second quarter of 2003 was six per
cent higher compared with the previous year and was eight per cent higher
in the most recent quarter compared with the previous quarter.
Employment
The seasonally adjusted number of employees in employment in April 2003
fell by one per cent compared with January 2003 and was six per cent lower
compared with April 2002. Total employment (including the self-employed)
in April 2003 fell by four per cent compared with January 2003 and was
four per cent lower compared with April 2002.
UK
construction sector expands at the strongest rate for twenty-seven months
in October
The
UK construction sector performed strongly again during October, expanding
for the fifty-seventh consecutive month, and at the fastest rate since
July 2001. According to the latest CIPS/NTC Research
survey, the headline seasonally-adjusted Purchasing Managers’ Index
(PMI) - designed to provide a single figure snap-shot of construction
activity – rose to 58.9, from 56.9 in September, indicating strong
growth of total industry activity.
Panel firms again attributed higher levels of activity to buoyant growth
of new work.
Government
Investment Drives Growth in Third Quarter - Reveals First Joint
Construction Industry Trade Survey
Increased government-funded work drove
construction growth during the third quarter of 2003, according to the
Construction Industry Trade Survey compiled jointly for the first time
by the Construction Confederation
and the Construction Products Association.
However, product manufacturers' sales indicate that the overall pace of
growth fell short of the 8% year on year rise officially recorded for
the previous quarter, whilst building contractors report further declines
in industrial and commercial output.
Construction Confederation Chief Executive Stephen Ratcliffe said: 'The
survey demonstrates the importance of sustained public sector investment
and the delivery of the promised renewal of this country's infrastructure.
Our industry needs consistency, continuity and the security of long-term
planned investment to maintain and develop its skills base as well as
delivering the Government's planned improvements to the quality of life
and competitiveness of our nation.'
Construction Products Association Chief Executive Michael Ankers said,
'The survey highlights construction product manufacturers' commitment
to increased investment across the board to raise capacity and improve
productivity. The industry is ready to meet the demands of the Government's
spending programme, the timely delivery of which is now crucial.'
Other key survey findings are:
• Industry expectations remain largely positive, with a net balance
of 12% of building contractors reporting above normal order books and
15% reporting an increase in enquiries
• Both building contractors and product manufacturers report some
easing in building cost inflation during the third quarter, consistent
with the moderation in output growth, but underlying pressures remain.
• Rising raw material prices, together with higher fuel and employment
costs and an increased tax burden, are putting manufacturers' unit costs
under pressure. However, the pace of material price rises has slowed especially
for light side products.
• Rising labour rather than material costs are the main pressure
point for building contractors, with over three quarters of surveyed firms
seeing a rise on a year ago. However, pressures eased slightly during
the quarter. Whilst more than 60% of contractors reported difficulty
in recruiting bricklayers, plasters, carpenters and joiners and plumbers,
acute shortages appear to be largely restricted to plasterers.
The rise in construction output over the last three years has improved
the capacity utilisation of building contractors and product manufacturers
alike. However, the pace of growth is expected to moderate over the next
year and to be increasingly focussed around the delivery of promised Government
investment in the built environment. Both sides of the industry are increasing
investment and anticipate that they have sufficient capacity to accommodate
the expected rise in activity over the next year.
Association
Urges Tax Reforms for Business and the Built Environment
In advance of the Chancellor's Pre
Budget Report, the Construction Products Association's
President, Roy Harrison, has called on Gordon Brown to instigate a number
of tax reforms and halt further taxation on business.
Commenting on the Association's submission, Roy Harrison, said:
'In recent years our industry has seen a raft of fiscal and regulatory
measures that have cumulatively added substantially to industry costs. Whilst
some of the stated objectives may be laudable, the way in which a number
of tax measures have been implemented is onerous and serves to undermine
the competitiveness of industry in this country.
'Amongst a range of specific issues that our industry has asked to be
addressed, I have pressed for a review of the Climate Change Levy (CCL).
We fundamentally oppose the way the CCL has been set up and as a matter
of priority the Government must establish whether the environmental objectives
behind its introduction are being met. This review should also serve
as a basis for discussions on the long term need for the levy and its
relationship with future UK/EU Emissions Trading Schemes.
'The Government has set a target to ensure that 60% of all new housing
provision is on brownfield sites. The costs and risks of decontaminating
such sites can act as a significant deterrent to owners and developers
alike. I am, therefore, calling on the Chancellor to incentivise
owners by offsetting the cost of cleaning up contaminated sites against
their Corporation Tax liability.
'We, like many other organisations, have for some time been pressing for
a reduction in the rate of VAT to 5% on all repair, maintenance and improvement
work, a move that would support a wide range of Government policy objectives. I
have, therefore, sent the Chancellor a copy of the report prepared for
the Association by Capital Economics earlier this year, which strongly
supports the case for a reduction in the rate of VAT on all RM&I.'
In its submission, the Association is also seeking:
• Extension of the lower rate of VAT to a wider range of energy efficient
products
• A reduction in stamp duty for all commercial property transactions
• A minimum 35% allowance rate on all capital investment
• Abolition of Insurance Premium Tax on mandatory insurance
• A full review of the Aggregates Tax
Huge
Demand Sparks Additional North West Show
The
campaign to recruit more members to the Government-backed Quality
Mark Scheme for good builders has proved so popular that an
additional trade launch event is to be held in the North West.
Even before the first of eight regional rollout events has been staged,
demand has outstripped capacity at the major venues, with hundreds of
tradespeople clamouring to attend launch evenings to learn more about
the Scheme and how to join.
The initial eight events themselves had already marked a big increase
in activity for the Scheme in a single region, and now a ninth has been
added to the schedule for the North West, with a reservation list for
those unable to attend one of the existing events being offered the new
alternative date.
Construction Minister Nigel Griffiths has warmly welcomed news that unprecedented
demand has necessitated the extra date at the JarvisPiccadilly Hotel in
central Manchester on Wednesday 12th November.
Nigel Griffiths said:
'I am delighted that our message about the importance of Quality Mark,
both to the trade, consumers and the wider economy has had such an impact
in the North West and that so many firms are keen to find out more.
'Due to popular demand, we have been able to book a ninth event at short
notice. I am determined that all firms in the region wanting to know how
they can benefit from membership should not miss out and should have the
opportunity to find out details first hand from the Scheme's experts.'
A special hotline on 08000 328 018 has been set up for firms to book free
places at the Quality Mark enlistment events which are being held:
Monday 27th October - Reebok Stadium, Bolton
Tuesday 28th October - Carlisle Racecourse
Wednesday 29th October - The Moat House Hotel, Chester
Thursday 30th October - The City of Manchester Stadium
Monday 3rd November - The JJB Stadium, Wigan
Tuesday 4th November - Aintree Racecourse, Liverpool
Monday 10th November - De Vere Hotel, Blackpool
Tuesday 11th November - Park Hall Hotel, near Preston
(extra date) Wednesday 12th November - Jarvis Piccadilly Hotel, Manchester
Representatives of 200 - 300 firms at each event will get details of how
Quality Mark works, why it is good for their business, industry and consumers,
together with an insight into what is included in the simple but thorough
independent assessment process for Scheme membership.
Designed with the home improvement market in mind, Quality Mark works
by placing contact details of accredited firms, which reach the required
standard, on a single national register, accessed free-of-charge through
a national call centre or via the internet at http://www.qualitymark.org.uk.
Interbuild
Responds to Prescott's Call
Interbuild,
the major exhibition for the UK building industry, is responding to John
Prescott's call to create affordable housing by using modern eco-friendly
off-site construction methods. The Deputy Prime Minister has set a target
of one million new homes in the South East by 2016 to combat the exodus
of essential workers from London and the South East.
Interbuild 2004, which takes place at the NEC from April 25-29, will showcase
the off-site construction championed by Mr Prescott through its Manufactured
Solutions section, giving visitors the chance to discover more about the
various methods and products.
Said Event Director Steve Webb: 'The Government's announcement will have
huge implications for the industry but housing is just one of many sectors
affected by off-site construction.
'The potential is unlimited and as the industry's leading exhibition,
we will naturally give a high profile to Manufactured Solutions.
'It's the No. 1 hot topic and with many people still need unaware or unconvinced
about the full value and suitability of off-site methods, Interbuild has
a key role to play in making the picture much clearer.
'The exhibition is regarded as the ideal place for bringing together all
sections of the industry and I know exhibitors are looking forward to
providing practical evidence of what can be achieved through off-site
construction.'
For more information on Interbuild or to pre-register, visit: http://www.interbuild.com
25-29 April 2004
NEC
Birmingham
'House
Prices up 138% Over a Decade'
The
price of the average house has rocketed 138% in the last decade, according
to new research. The southern counties are the most expensive location
in the UK to buy a house - the cheapest is South Wales, said the Halifax
Estate Agents.
It analysed 10 years of house price data across 60 counties to produce
its findings, which reinforces the north/south divide.
Surrey is the most expensive county in the UK with the average property
costing £281,451, the research showed.
It is closely followed by the Greater London conurbation, weighing in
at £243,346, Berkshire at £232,009 and Oxfordshire costing
£228,925.
West Glamorgan is the least expensive county in the UK to live with the
average home costing £89,621. The second cheapest is South Humberside
where a house costs on average £91,498.
However, the traditional north/south divide is reversed when looking at
house price inflation over the past 12 months.
In this period, northern counties have seen greater house price growth
than those in the south. The cost of the average house in Dumfries &
Galloway has risen by 48%, closely followed by Dyfed (44%) and South Humberside
(36%). While in the south, Wiltshire has grown by only 2%.
Jane Pridgeon, managing director of Halifax Estate Agents, said: 'There
has been a huge variation in house price growth across the country over
the past 10 years but there is little doubt that the majority of counties
have done very well with around 80% seeing increases of over 100%.
'The past 12 months has definitely been 'the year of the north' as house
prices in northern counties have generally outperformed the southern counties,
slightly narrowing the traditional north/south divide.'
New
Construction Orders: August 2003
Construction
Orders in the twelve months to August 2003 rose by four per cent compared
to orders in the previous twelve months, but orders in the three months
to August 2003 fell by one per cent compared to the same three months
a year earlier.
Orders in the three months to August 2003 fell by nine per cent compared
to the previous three months, with falls in all sectors except public
non-housing and private commercial orders. All orders figures quoted
are seasonally adjusted and in constant (1995) prices.
Private housing orders in the twelve months to August 2003 rose by 10
per cent compared to the previous twelve months. Orders in the three months
to August 2003 fell by eight per cent compared with the previous three
months, but rose by six per cent compared with the same three months a
year earlier. Public housing and housing association orders in the
twelve months to August 2003 rose by five per cent when compared to the
previous twelve months. Public housing and housing association orders
in the three months to August 2003 fell by 24 per cent compared to the
previous three months, and by 11 per cent compared to the same three months
a year earlier. All comparisons in this sector are affected by large
variations due to its relatively small size.
Infrastructure orders in the twelve months to August 2003 decreased by
14 per cent compared with the previous twelve months. Orders in the three
months to August 2003 fell by 40 per cent compared with the previous three
months, and were 14 per cent lower than in the same three months a year
earlier, following strong roads and rail orders in both previous comparison
periods.
Public non-housing orders (excluding infrastructure) in the twelve months
to August 2003 rose by 40 per cent when compared with the previous twelve
months, largely due to an exceptionally high public miscellaneous figure
in December 2002. Orders in the three months to August 2003 rose
by four per cent compared with the previous period, and were 18 per cent
higher compared to the same three months a year earlier.
Private commercial orders in the twelve months to August 2003 fell by
three per cent compared to the previous twelve months. Orders in
the three months to August 2003 were five per cent higher compared to
the previous period, but were nine per cent lower than in the same three
months a year earlier.
Private industrial orders in the twelve months to August 2003 fell by
one per cent compared with the previous twelve months. Orders in
the three months to August 2003 were five per cent lower than in the previous
period, and were five per cent lower compared to the same three months
twelve months earlier.
Poor
Communication and Use of Information Costing UK Construction Industry
Billions
BSI
Business Information
has launched PD 7503, an 'Introduction to Knowledge Management in Construction'
that will serve as a guide for the UK construction industry to begin to
embrace effective knowledge management.
It is estimated that defects in the UK construction industry, many of
which are the result of the inefficient use and communication of information,
cost at least £20 billion to correct every year.
Building projects that adopt effective knowledge management systems, such
as better communication and sharing of information between designers,
engineers and contractors, are more likely to be on time, on budget and
experience less snagging problems.
David Williams, head of construction market development for BSI says:
'Relatively few companies operating in the construction sector have fully
embraced knowledge management. We hope PD 7503 will help to change that,
as it offers an introductory guide on how to effectively manage the wealth
of knowledge involved in the complete construction process from design
to construction, handover and occupation and to ensure it is properly
communicated and applied.'
PD 7503 is available to download and is priced at £20.00 (plus VAT).
Log on to http://www.bsi-km.com
for further information.
Study
Supports Case for VAT Reduction on RM&I
A
study carried out by Capital Economics for the Construction
Products Association supports the case for reducing VAT to
5% on all domestic repair, maintenance and improvement work.
Commenting on the study, Construction Products Association Chief Executive,
Michael Ankers said: 'Reducing VAT to 5% on domestic RM&I has
been a long standing policy objective of the Association and, indeed,
the rest of the construction industry. Successive Governments have, however,
ignored calls for such a reduction and, as a result, some groups in the
industry have recently written to the Chancellor arguing for equality
of VAT on RM&I and new house building.
'The report by Capital Economics clearly concludes that the case for reducing
VAT to 5% on domestic RM&I is a strong one and can be justified on
its own merits without the need to balance this by the imposition of VAT
on new house building. As the consultants make clear, such a move would
be economically disadvantageous and politically unattractive - tending
to reduce the amount of new house building and increase the price of houses,
quite contrary to the Government's political objectives.'
The Association has already discussed the findings of the study with Treasury
officials and Construction Minister, Nigel Griffiths, and will be using
the report to support its submission to the Chancellor in advance of his
Pre Budget Report later this year.
As Ankers pointed out: 'With the recent major change in policy by
the European Commission on this issue, and the increasing importance being
attached to improving the condition and energy efficiency of the existing
housing stock, there is no better time for the Government finally to provide
this financial incentive to house holders and, at the same time, help
reduce the unfair advantage of those working in the black economy'.
Contact: Allan Wilén
Construction Products Association
Tel: 020 7323 3770
E-mail: mailto:awilen@constprod.org.uk
Homebuilder
Redrow has announced a record
pre-tax profit of £106m. Breaking through the magic £100m
figure for the first time after a 25% increase, the North Wales company
also saw its turnover increase by 6% to £607.9m.
Reporting its annual results recently to the year ending June 30th, 2003,
the Flintshire-based business in turn distanced itself from speculation
that it is planning to merge with rival Bovis.
Across the UK Redrow's average selling prices rose by 6% to £147,900
in the year to June 30th.
Redrow chief executive Paul Pedley, said, 'I don't think there is any
suggestion of house prices not continuing to grow and if you turned the
clock forward a year or so you will see them growing in line with earnings.'
Mr Pedley said that the company was positioning itself to take advantage
of potential in the Milton Keynes, Stansted and East Thames areas -
identified by the Government for future development to meet demand for
more housing in the south of England.
In anticipation of growth in the area, Redrow has reviewed its geographical
organisation with the creation of a new division to take advantage of
opportunities in the so-called 'Milton Keynes triangle'.
The ongoing strength of the housebuilding sector has put Redrow in the
frame for possible consolidation.
But Mr Pedley insisted that, while the group would consider potential
acquisitions if they arose, it would continue to focus on organic growth.
The company completed 4,031 homes during the year, up from 3,908 the previous
year. Its current land bank stands at 16,000 plots, representing four
years' supply.
House
Prices out of the Doldrums?
House
prices rose in August for the first time in six months, according to the
latest survey from the Royal Institution of Chartered
Surveyors (Rics).
Rics said the slight increase reflected the emergence of potential buyers
in greater numbers - a function of climbing confidence since the end of
the war in Iraq.
The group said 16% more surveyors in England and Wales reported seeing
a rise in the number of people looking to buy a property during the three
months to the end of August, up from 11% in July and 5% in June.
Overall 8% more surveyors reported seeing price rises than those who saw
price falls.
Rics housing spokesman Jeremy Leaf said: 'The summer months are traditionally
quiet, so we expect to see an increase in activity as we come into the
autumn following the start of the new school year.
'The national picture is one of quite modest house price rises for the
first time this year, although the south is still trailing behind the
north.'
In recent months, the north has generally seen far higher house-price
growth than the south, where high prices make the market tricky for first-time
buyers to crack.
Rics said all northern regions saw price rises during August, most notably
in the northwest.
But it also said that the rate of falls was easing in most southern regions,
with homes in the southwest showing the first price increases since January.
Overall, confidence remains very strong, with 46% more surveyors expecting
property prices to rise during the next three months than those who think
they will fall.