7th March 2025
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Optimistic Outlook for Construction and Housebuilding
There is some positive news for the construction and housebuilder sectors in the year ahead. Government departments are estimated to have underspent their capital budgets by around £4.9 billion during the last financial year, according to Glenigan*. Some of this underspend is expected will support construction activity in public funded areas such as health, education, and transport infrastructure.
For example, the Department for Education’s capital funding is set to grow and this will help to support a rise in school building projects, with double-digit growth forecast for 2024. In addition, Government funding was made available in the Spending Review to address a shortage of secondary school places, especially in major cities, plus the Government is committed to rebuilding 500 schools over the next decade. As is widely known, there is also a large amount of remediation and rebuilding required where RAAC is present in school buildings. In addition, the Government is set to continue to focus on meeting net zero commitments within its projects.
The next general election may have happened by the Autumn and must certainly be held by January 2025. The run-up to the election will see some public sector construction projects disrupted due to funding decisions being delayed, while post-election public sector investment programmes may come under review, as the new Government sets out its priorities.
Despite many projects being put on hold right now, analysts still predict growth in construction starts during 2024 and 2025 as the prospect of a strengthening UK economy is set to lift consumer and business confidence. A further strengthening in starts is forecast for 2025 as UK economic growth gathers momentum, supported by a rise in household spending and business investment.
In the social housing sector too, Government capital funding has increased, with the Affordable Homes Programme (AFP) aiming to deliver 180,000 new homes in England over the five years to 2026. In addition, housing associations now have greater flexibility to increase their borrowing to fund new developments, following the easing of government restrictions that had capped association rent increases to 1% below the rate of inflation. This could lead to more social housing starts in the coming months.
Glenigan forecasts that PBSA (Purpose Built Student Accommodation) will see a significant leap in project starts this year – at 16%, as market conditions encourage investment. It is predicted that this growth will continue into 2025 with a 10% rise in starts, which should provide a steady stream of work for many construction companies.
Unite, one the UK’s biggest student accommodation developers, for example, has a £1.3 billion pipeline including a £569 million committed pipeline for projects in the cities in the Russell Group of leading universities.
Many of these student housing projects are planned in London, Leeds, Loughborough, Newcastle and Liverpool. This is in part to cater for a rise in overseas students, which have increased by 12.4% since the pandemic, particularly from China and India.
All this is positive news for the construction and housebuilding industries, where we are seeing increased demand for high-quality welfare accommodation. Our welfare units play a crucial role in ensuring the efficiency of construction teams as well as their wellbeing and health and safety by providing essential amenities and services for use on site.
A welfare unit, also referred to as a “site welfare cabin”, is a portable facility designed to cater to the needs of workers on construction sites or temporary work locations, such as rail or infrastructure projects. These units go far beyond the minimum health, safety and environmental requirements, offering a range of amenities and services that contribute to the comfort and hygiene of workers.
An Oasis unit is completely self-contained and offers contractors an all-in-one “instant start” welfare solution. These units are designed to provide canteen, drying, changing and toilet facilities. Some Oasis units also include comfortable office or meeting space and the option of a shower.
Oasis units are particularly important on sites where it is not possible to connect to the grid or other utility services. By providing an instant start welfare solution at the very early stages of the project, our Oasis units allow sites to begin work immediately, saving both time and money. Due to the comprehensive delivery and service we provide, Oasis units are a popular choice for many industry sectors, including construction, housebuilding, highways, utilities, and infrastructure projects.
All our Oasis welfare units are designed to minimise environmental impact, enhance staff wellbeing and have a positive impact on the surrounding community. Our off-grid units are powered by proven hybrid and solar technology, using renewable energy to reduce carbon emissions, noise and fuel costs. Smart telemetry is installed in all welfare units to ensure optimal unit efficiency and limited noise disturbance, benefiting both staff and the local community.
With an average of 95.2% carbon savings for electrical power compared to equivalent diesel units, EcoLogic Solar units are suitable for all weather conditions and work environments. These welfare facilities also feature a 24/7 drying and changing room that operates silently overnight, providing convenience and comfort for workers.
We offer a range of layouts for our Oasis welfare units, with options available in 32ft or 24ft. All 32ft units have two separate toilets, making them suitable for large or diverse workforces.
In addition to static welfare units, our Oasis Welfare range offers the option to double-stack and increase office and meeting space with the unique EcoMax Hybrid and EcoMax Solar ranges. These self-contained units maximise welfare and improve office working facilities, and, with an ability to stack, take up minimal space in the compound.
The ground floor of an EcoMax unit includes the preferred welfare layout, which can include office and/or canteen facilities, a 24/7 drying room, and one or two toilets. The first floor provides additional office and/or meeting space, creating a positive work environment for staff and visitors.
Our EcoMax units are powered by low emission, low noise EcoLogic Hybrid and solar technology, supporting clients in meeting ESG sustainability and net zero targets.
Final thoughts…
Our Oasis units offer a self-contained, instant start welfare solution that meets the needs of contractors across the UK. These units are sustainable, powered by renewable energy and designed to minimise environmental impact.
By investing in high-quality welfare units, construction and housebuilding companies are demonstrating their commitment to meeting the needs of their workforce, enhancing their wellbeing, health and safety and creating a positive work environment on-site. This is vitally important as construction workers are in high demand and it is the work environment and facilities that can make a point of differentiation, helping to attract and retain workers.
As the construction and housebuilding sector continues to grow, high quality welfare units are set to become ever more important.
For more information call 01268 280500 or email sales@advante.co.uk
*source Glenigan Construction Industry Forecast 2024-2025.