The Week That Was - 22 November 2024

Welcome to The Week That Was, a round-up of key events in the construction sector over the last seven days.

Plant-hire industry concerned over changes to inheritance tax

The Autumn Budget introduced a £1m cap on assets eligible for 100% business property relief (BPR), effective from April 2026.

The Construction Plant-hire Association and Scottish Plant Owners Association have expressed concern, saying that as plant-hire companies are mostly family-owned, new generations will face a significantly increased inheritance tax burden, which many will not be able to afford.

An increased tax liability, they say, will reduce plant-hire companies' ability to invest in new equipment.  There is also concern that the loss of these smaller companies will leave a gap in the market as large contractor firms do not own their own equipment.

You can read more here

Does a Defendant's removal of a Claimant's goods constitute trespass?

The High Court in Bristol recently considered this question in a dispute over the amount of land the Defendant had agreed to sell to the Claimant.
The Claimant had built a workshop on a 30x60 feet plot of land in 1983 after buying it from the Defendant.  The Defendant also granted the Claimant a right of way over adjacent land. In the case, the Claimant argued that the Defendant had agreed to sell a larger 60x120 feet plot which included the right of way. The Claimant submitted an annotated plan allegedly provided by the Defendant in 1982 in support of his argument.  The Claimant also argued that he was in adverse possession of the larger plot as he used it to store his goods.

In 2021, the Defendant removed the goods in question.  The Claimant brought a claim for specific performance of the contract of sale (for the larger plot) and adverse possession, while also seeking an injunction for trespass.

The Court found that the Claimant's evidence was unreliable, notably because it was not convinced that the Defendant would agree to a sale of land which would result in landlock, and because this was the first time the annotated plan had been mentioned by the Claimant in over 40 years.
The Court held that the Defendant's actions in removing the Claimant's goods from the contested land did not constitute trespass as the land belonged to the Defendant and the Claimant had been asked to remove them previously.

Click here to read the judgment.

Infrastructure to get £80bn boost from public sector pensions

New Chancellor Rachel Reeves has unveiled pension reforms aimed at creating 'megafunds' to unlock £80bn of investment in UK investment projects. 
The proposed 'megafunds' will be created through consolidating defined contribution schemes and pooling assets from 86 separate Local Government Pension Scheme authorities to 'unlock' funds.  Consolidation will increase the size of the relevant funds, allowing investment into assets with higher growth potential, mirroring set-ups in Australia and Canada. 

The Pensions Minister, Emma Reynolds, and the Chancellor have identified the opportunity to invest the newly available funds into critical infrastructure, potentially opening up a pipeline of billions of pounds worth of new construction projects.  

For more information, please see here. 

Mortgage lenders reject homes with spray foam insulation

The BBC has found that a quarter of the UK's biggest mortgage providers will not lend against homes with spray foam in their roof. 
The use of spray foam insulation was partly driven by the previous government's Green Homes Grant scheme, but now some mortgage firms are reluctant to lend on homes using the product due to concerns regarding poor fitting of the insulation, which could lead to moisture being trapped within the construction and leave roof timbers at risk of decay.

An estimated 250,000 homes in the UK are thought to be affected by the use of spray foam insulation, with homeowners potentially facing bills for remedial works running to thousands of pounds to bring their homes up to scratch for mortgage lenders.

For more information, please see here.

Mace picks up job to finish UCL neuroscience building left stalled by ISG collapse

Mace has been appointed to complete UCL’s neuroscience building on Gray’s Inn Road, previously stalled by ISG’s collapse. ISG initially secured the £110m project in 2019, with completion expected in 2023. Following ISG’s implosion two months ago, UCL conducted a robust procurement process, selecting Mace due to its expertise, demonstrated in projects like the UCL East Marshgate building.

Mace will review the site over three months to finalise terms and create a revised schedule. UCL and Mace may also retain some suppliers from ISG. The facility will house the UCL Queen Square Institute of Neurology, the UK Dementia Research Institute, and an outpatient unit.

This is Mace’s first construction project replacing ISG, supplementing five fit-out jobs, including Bloomberg South, worth £200m. These acquisitions are set to boost its fit-out turnover to £500m in 2024, with staff rising to 420, supporting its growth strategy.

To read more, please click here. 

Cheltenham homebuilding scheme enters final phase 

Spitfire Homes has launched the final phase of its Fairmont development in Bishop’s Cleeve, offering two- to four-bedroom homes ready for occupation from December 2024. Fairmont, a 215-home project, has seen strong demand due to its modern designs and energy-efficient features. These include air source heat pumps, smart heating systems and electric car charging points. Situated near the Cotswolds Area of Outstanding Natural Beauty, the location combines a village lifestyle with excellent transport links to Cheltenham and Gloucester.

This phase follows the success of earlier stages, with properties appealing to a range of buyers, including families, first-time buyers, and downsizers. The homes showcase a mix of red brick, white render and stone exteriors paired with sleek, contemporary interiors.

The housing market’s positive momentum, prompted by easing mortgage rates, has further boosted interest. Spitfire is also investing over £7 million in the local community, enhancing education, sports facilities, and public transport.

To read more, please click here.

 
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.

Authors: Laura Sponti, Harry Langford-Collins and Nikita Austin