Lawyer Monthly Magazine - August 2019 Edition

funding grants available to them. It is perhaps worth keeping in mind that some of what are termed "modern" methods of construction have been around for a long time and have gone in and out of fashion. Whilst still training as an architect I was designing "Pods" (bedroom units entirely assembled in a factory and then delivered whole to site). Some 30 years later I am drafting contracts for Bathroom Pods to be installed into super prime residential projects in the heart of London. Measures such as MMC on their own are not going to solve the housing crisis. This is not something the construction sector can solve on its own. That is likely to require a major initiative from Central Government across many areas. Many developers in this part of the world will tell you that if they could do one thing to stimulate development in the UK it would be to overhaul what they regard as a lengthy and cumbersome planning system and the ability of local interests to stymie much needed development. Some of the system's critics may go on to tell you that it seems to pay too much attention to the "haves" who are generally opposed to any further development at all in their backyards and not enough attention to the "have nots" who are desperately trying to get onto the housing ladder. "Still stuck in planning" with a scheme that they believe is compliant with the Local Plan is not an uncommon complaint from developers. At the same time of course there are many others who will point out that the system is an entirely necessary restraint on the interests of "Big Business" over local communities. I have two boys who are eight and eleven years old. With the price of property in the South East of England being what it is and at the current rate of house building, I have a nagging suspicion that they may still be living at home with me when they are 30 years old. What do you think will be the immediate consequences of Brexit for the UK construction sector? "Uncertainty" has been the defining characteristic of the run up to Brexit and we are all really just speculating about what the real consequences will be once the UK leaves the EU. That said, it seems likely that we can expect an increase in the cost of construction post Brexit. For example: The manufacturing industry in this country has long since passed its heyday and many components of our buildings are imported from Europe. Those products, we hope, will still be available to us but the question will be how much is the price going to increase to get them into this country and how much longer will it take? The short answer seems to be that it is likely to cost more and take longer. How much more and how much longer, who knows. Some developers are stockpiling components in anticipation of difficulties ahead. Storing these components for many months all adds to the cost of construction. For a long time, the UK construction industry has been heavily dependent on immigrant labour. Once we have left the EU that labour may simply not be available to us which means the cost of domestic labour is going to increase and the cost of construction will go up. LM of clarity over Brexit and developers were beginning to push ahead with projects in any event. Can the UK construction sector overcome this? In many parts of the country, we still have the same underlying problem we have had for a very long time, namely there is not enough housing for everyone to live in, particularly affordable housing. Brexit is not going to change that, there will still be the same chronic need for more housing. A candidate in London’s next mayoral election was recently quoted as saying “unaffordable housing is the defining problem of our generation... compared to London’s housing situation Brexit is a cakewalk.” In the 1950s the UK Government built some 300,000 homes a year across the country. Various economic commentators estimate that there is now a need for a similar volume of house building yet current production is nowhere near this level. Within the UK construction sector there is currently a drive towards utilising more modern methods of construction and off site factory assembly. to increase the efficiency of production. The "Farmer Review of the UK Construction Labour Model" was commissioned in 2016 by the Construction Leadership Council at the request of the UK Government. The Review, titled "Modernise or Die" was critical of existing construction industry practices and strongly advocated modern methods of construction (MMC). By 2017 the Government had endorsed most of the Review's findings and is now supportive of construction projects employing MMC making “Many developers in this part of the world will tell you that if they could do one thing to stimulate development in the UK it would be to overhaul the rather cumbersome planning system we have in this country” 60 WWW.LAWYER-MONTHLY.COM | AUG 2019 Professional Excellence By Ian Reid, Trowers & Hamlins LLP CONTACT Ian Reid, Partner at Trowers & Hamlins LLP 3 Bunhill Row, London, EC1Y 8YZ | DX 774 Lon/City Direct: +44 (0)207 423 8512 | Mob: +44 (0)7484 006235 | Tel: +44 (0)20 7423 8000 Fax: +44 (0)20 7423 8001 | www.trowers.com