Reforms to our planning system since the Second World War are set to pave the way for a construction boom in the UK. New regulations announced by the government will make it easier to change the use of buildings and land in town centres without planning permission and to create new homes from the regeneration of vacant and redundant buildings and spaces. Here we will explore how asset finance can help construction companies make the most of this opportunity
What is the new plan?
The raft of measures, dubbed ‘build, build, build’, includes allowing commercial buildings such as vacant shops to be converted into residential housing more easily, removing the requirement for a normal planning application to demolish and rebuild vacant residential and commercial buildings if they are rebuilt as homes, and permitting property owners to build additional space above their properties though a fast track approval process.
These changes are underpinned by a £5bn injection to speed up key infrastructure projects across the UK including schools, roads, hospitals, and a range of local growth projects in England over the course of this year and the next.
While lockdown saw construction fall into temporary stasis, this new announcement highlights that the industry is seen as a vital catalyst for a wider recovery. With this package of measures the government hopes to kick start the construction industry – and the economy with it. Those in the sector need to be ready with the skilled workers and the resources they need to win projects in this coming wave of new work.
What can construction companies do to prepare?
The message is not only ‘build, build, build’ but ‘build back better’, with a focus on green technologies and environmentally friendly buildings and construction techniques using machines with smart systems that allow them to be operated in the most efficient and productive way.
That calls from a commitment by companies to invest in and renew their plant and equipment, not only to deliver on projects coming in the near-term, but also to safeguard their future capabilities and keep up with the demand for innovative and sustainable construction solutions.
As Civil Engineering Contractors Association director of external affairs Marie-Claude Hemming put it: ‘In order to return the UK economy to growth, we must turbocharge our sector, so that our members can build our way to recovery.”
How asset finance can help construction companies
We work with businesses and professionals throughout the construction sector and offer a host of finance solutions to help them take the positive steps they need to develop their capabilities and build their businesses with minimal capital outlay.
Whether you are looking for funds to purchase new equipment, to restructure existing debt, or refinance to raise additional working capital, our team can help.
Our finance or operating lease agreements offer a way for companies to purchase new equipment with manageable monthly repayments over an agreed period of time.
We also specialise in asset backed leasing, funding high value transactions secured against ‘hard’ assets such as machinery and plant equipment.
The future looks bright for the UK construction industry and can want to help our clients be a part of it. Find out how by calling us on 01425 474070 or emailing info@dgfinance.co.uk