The Week That Was - 4 April 2025

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

Transformation of Liverpool's Tobacco Warehouse

Liverpool's abandoned historic Tobacco Warehouse, once the world's largest, is undergoing a £250 million redevelopment to rejuvenate the city's docklands.  The ambitious project aims to convert the expansive warehouse into a modern mixed-use development featuring cafes, bars, a leisure centre, residential apartments, and retail spaces.  Upon completion, the warehouse will accommodate 1,500 residents.

The revitalisation seeks to preserve the warehouse's architectural heritage while promoting sustainability and urban regeneration, which aligns with broader efforts to rejuvenate Liverpool's historic dock system, including the development of the new Everton FC stadium. 

To read more, click here.

Broadway Malyan redesigns plans for Birmingham tower entirely covered in PV panels

Architects, Broadway Malyan have redesigned their plans for a co-living tower in Birmingham and have ambitions for it to be the world’s tallest energy positive building.  The building will feature Building Integrated Photovoltaics on its façade, which will feed excess energy back into the local grid.  The scheme will also include swift boxes within the building façade, and a dedicated space for beekeeping on the roof to encourage pollination of local plants. 

The co-living scheme will also be one of the UK’s narrowest residential buildings at just 8.5 metres wide.

The project team, which has been retained during the redesign, includes heritage consultant, Donald Insall Associates; planning consultant, CBRE; structural and civil engineer, HSP; landscape architect, Bea and MEP engineer, Syntegral.

If approved, construction of the scheme is expected to start in the last quarter of next year and complete in 2028.

You can read more here.

After 16 years, Lower Thames Crossing finally obtains approval

The Government has finally approved the £9bn Lower Thames Crossing, 16 years after the project was first proposed.  The project will feature the UK’s longest road tunnels beneath the River Thames between Tilbury and Gravesend, as part of a plan to reduce congestion on the Dartford Crossing.

A decision on the scheme has previously been postponed on three occasions.  More than £1.2bn has been spent on planning costs alone since the proposal for the tunnel was first put forward in 2009.

Around 4.2km of the road would be underground in the form of two parallel road tunnels running northbound and southbound and the 23km route will link the A2 and M2 in Kent with the A13 and M23 in Thurrock.  Construction could start next year and open by 2032.

To read more, click here.

New building safety guidance for higher-risk buildings

The Health and Safety Executive has published new guidance on various aspects of the building safety regime that applies to higher-risk building projects, including the following:

• Applying for a completion certificate;
• Building control approval for higher-risk buildings;
• Making changes to a higher-risk building project, and;
• Preparing information for a building control approval application.

The guidance was published following concerns that developers face difficulties understanding what is required of them under the gateway regime for higher-risk buildings.  While it helpfully provides information, including a list of required documents, it offers only a basic overview.  However, developers' main concerns generally lie in the complex details and the level of information needed, rather than the requirement to submit documents.

To read more, click here. 

Landlords may have to pay up to £12 billion by 2030 to comply with EPC requirements

The Government's new energy efficiency rules require all privately rented homes in England and Wales to have an EPC rating of C by 2030.

However, this is expected to come with a large initial outlay for landlords.  Data analysts, Impact Data Metrics, reviewed 19 million records and calculated that the required works (which includes retrofitting homes with better insulation and double glazing) would likely fall between £6,220 to £11,120 per home.

Whilst the new rules only impact privately rented homes, and not those owned outright, Impact Data Metrics suggest this will affect 1.1 million homes, with landlords footing a bill of £6.7bn to £12bn.

If this policy was adjusted to include all homes in England and Wales, the bill would come to £65.4bn - £118.1bn.

To read more, click here.

Tender opened for DfE's £15.4 billion school construction framework

On 27 March 2025, the Department for Education formally invited tenders for its substantial Construction Framework (CF25) with a deadline of 7 May 2025.

CF25 is set to last for 6 years from January 2026 and promises a budget of £15.4bn for the redevelopment and construction of schools, universities, colleges, and other educational buildings.

The budget for each project and number of positions available will depend on to which of the 10 lots (or groups of regions) it has been assigned. There are two lots which are treated as "High Value Bands", covering projects of £12 million+ and over 2,500 sq meters; and 8 lots treated as "Low Value Bands", for projects of £4.4-£12 million and under 2,500 sq meters.

To read more, click here.

Building costs set to increase by 17% in the next five years

According to a new forecast from the Building Cost Information Service (BCIS), construction costs are predicted to increase by 17% over the next five years.  Within the same period, tender prices are also expected to increase by 15%.  The key drivers behind the rising costs include the increase in National Insurance contributions (rising from 13.8% to 15% this month) and the National Living wage.

Dr David Crosthwaite, chief economist at BCIS, has stated that 2025 will be a difficult year for the industry. However, it's not all doom and gloom, as BCIS predicts that new work output will grow by 19% in the latter period of the next 5 years.

To read more, click here.

With thanks to: Chris Wilkie, Jess Finch and Bodene Robertson-Wright.

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.