The Week That Was - 10 January 2025

Welcome to the week that was, a round-up of key events in the construction sector over the last seven days.

RPC's Regulatory Radar is published

RPC's bi-annual Regulatory Radar publication is a one-stop-shop for updates on key recent and upcoming regulatory changes.  The latest edition launched on 6 January and comprises a suite of horizon scanning pieces looking at some of the most topical regulatory themes impacting a range of sectors in 2025.

Key topics include an article on construction and health and safety (page 5) titled "Building safety: could your business be exposed?".  This takes a closer look at the Building Safety Act 2022, now that most of it has been implemented (with the latest guidance released in October 2024). 

You can read the publication in full here.

ESG in construction law

University College London's (UCL) Bartlett School of Sustainable Construction has published the results of its survey of construction and legal professionals' views on Environmental, Social and Governance (ESG) issues in the construction and legal industries.

203 members of the Society of Construction Lawyers took part in the survey in September 2024 and the results of the survey show that there are key differences in ESG awareness, training participation, and prioritisation across different age and gender groups and sectors of the construction and legal industry.

In the report, UCL make recommendations on ESG training, certification and policy.

You can read more here.

Department of Education awards older buildings research project

The Department of Education has awarded PwC a contract valued at c.£1m to design and deliver a research programme to understand the structural issues and risks in "post-war builds and construction products".

The DoE say it needs to understand the profile, condition and structural issues and/or risks of buildings built between 1945 and 1990, when construction moved away from traditional methods towards innovative construction methods including system builds (prefabricated "industrialised" systems) using a variety of steel, timber or precast concrete frames with lightweight cladding panels and partitions.

You can read more here.

Increased regulatory measures blamed for higher build costs

The CEO of Churchill Living, Spencer J McCarthy, has said that regulatory "burdens" have resulted in higher building costs.  

While Churchill won planning consents for 499 units across 12 sites in 2024 (compared with 771 in 2023), most of these were won through appeal. McCarthy blamed this need to appeal on “under-resourced local planning authorities, a labyrinth of red tape and delays caused by negotiations on affordable housing, phosphates and nitrates bureaucracy”.

The company's revenue dropped last year from £174m to £149m, which McCarthy partly attributes to an 11.9% increase in the business’ build costs, which he thinks are partly caused by increased regulatory measures.

You can read more here.

New plans submitted for a 15-storey tower over Southwark underground station 

The property company for Transport for London (TfL), Helical and Places for London, have submitted plans to build a 15-storey student accommodation tower on top of Southwark Underground station.

This scheme is part of a 2023 joint venture agreement between the developer and TfL which also includes the redevelopment of over-station sites at Bank and Paddington.  Planning permission was secured for the Southwark site in July 2022 for a 17-storey office building designed by Allford Hall Monaghan Morris (AHMM). These new plans, also designed by AHMM, propose a new design with a reduced tower size (down to 15 storeys) comprising 429 student studio rooms.  The developer has also proposed to meet its affordable housing requirements by providing 44 affordable homes in a separate nine-storey building in Joan Street.  A community space is proposed on the southern part of the ground floor of this building.

You can read more here.

Wates wins £75m residential scheme in Hampshire

Wates Construction has won a £75m contract to deliver the 381-home first phase of the One Horton Heath development in Hampshire.  Work has already commenced at the 13.8-hectare Lower Acre site, with completion expected by 2027.

The scheme, approved by Eastleigh Borough Council in 2021, is part of a nine-phase project that will eventually deliver 2,500 homes across 130 hectares.  Homes in this phase will include 2-4 storey flats and houses, with 35% designated as affordable housing.

Eastleigh Borough Council is overseeing the project as both landowner and developer, with homes to be sold or let through its housing company, Eastbrooke Homes.  The development also features open spaces, landscaping, cycleways, and sustainable drainage systems.

Wates was appointed via Homes England’s Dynamic Purchasing System, which it joined in 2021. 

You can read more about the announcement and the development plans here.

Lendlease sells UK construction business to Atlas Holdings

Australian real estate group Lendlease has sold its UK construction business to US private equity firm Atlas Holdings.  The deal includes the transfer of Lendlease’s operations, employees, and leadership team.

Atlas, founded in 2002, operates 26 platform companies across various industries, employing over 50,000 people and generating annual revenues of approximately $16 billion.  Known for expertise in construction and manufacturing, Atlas is expanding its global portfolio with this acquisition.

Lendlease’s UK construction arm, established in 1885 as Bovis Construction and acquired by Lendlease in 1999, has delivered iconic projects like Regent Street’s rebuilding, Lloyds of London’s headquarters, and Canary Wharf’s first phase.

Lendlease CEO Tony Lombardo described the sale as part of a strategy to simplify operations and enhance shareholder returns.  Atlas Operating Partner Peter Bacon expressed enthusiasm about acquiring one of the UK’s top construction firms.

The transaction awaits regulatory approval and is expected to complete by June 2025. 

You can read more here.

With thanks to: Annabel Gallocher, Abbie Dyas, Nikita Austin

Disclaimer: The information in this publication is for guidance purposes only and does not constitute legal advice.  We attempt to ensure that the content is current as at the date of publication, but we do not guarantee that it remains up to date.  You should seek legal or other professional advice before acting or relying on any of the content.