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Brickies Secure Huge Pay Rises On Back Of New Homes Demand

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Bricklayers’ pay has surged 20% in the past six months as housebuilders struggle to keep up with a surge in demand for homes driven by the Government’s Help to Buy scheme, an industry boss said today. Galliford Try chief executive Greg Fitzgerald said good bricklayers can currently command salaries of £40,000 a year — or even more in the capital — as the industry scrambles for staff. Pretty much, since Help to Buy on April 1, we have gone from an environment where if you made a mistake on a job and needed twice as many brickies you would just go and pick them up to a completely different ball game. We can see build inflation starting to come through for the first time in four or five years.”

The industry is also finding it difficult to source materials such as bricks and breeze blocks. There is an element of panicking going on whereby some builders are ordering more than they need. Official figures showed big rises in orders for both public and private new housing between April and June, which rose at their fastest pace since the autumn of 2010. In volume terms, the £4 billion of orders is the highest since the end of 2007, according to the Office for National Statistics. Link

Bricklayers’ pay is in bubble territory.

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Good. Higher wages will draw more people into the trade and increase the UK's ability to build houses for people to live in.

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Good. Higher wages will draw more people into the trade and increase the UK's ability to build houses for people to live in.

There's no shortage of any construction tradesmen

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There's no shortage of any construction tradesmen

Then why are the wages rising (if they actually are rising)?

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There's no shortage of any construction tradesmen

Rightmove is full of off plan new build houses, with red "Help to Buy" stickers, that builders have rushed to market and are desperate to complete before the punters realise they can't really afford them.

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The Poles and others have gone home...all thats left are locals with their debt monkeys on their backs.

If the report is in any way true, the Poles will be back.

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The Poles and others have gone home...all thats left are locals with their debt monkeys on their backs.

Czech decorator and various foreign (Romanian and Polish I believe) labourers on site yesterday

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Czech decorator and various foreign (Romanian and Polish I believe) labourers on site yesterday

I wonder if the article was trying to push some training courses.

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I wonder if the article was trying to push some training courses.

Bound to be an agenda, for sure. Always seems to be these days.

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Rightmove is full of off plan new build houses, with red "Help to Buy" stickers, that builders have rushed to market and are desperate to complete before the punters realise they can't really afford them.

This is very true, and the punters are like lambs to the slaughter in my neck of the woods.

I went round a new estate a couple of weekends ago and saw the young couples' excitement and the HTB banners everywhere.

Potential buyers falling over themselves to splash £320-450K on papier mache, high density homes.

Who in their right minds would pay or borrow so much for so little? You could rent the equivalent at £10K a year for 45 years - I know that is a simplistic calculation.

Anyway, I wept.

The houses were really only worth 50% at best if you 'stood back' and considered for just a brief moment.

The best was yet to come:

The show home had settled so badly in the 4 weeks since it opened that I really thought some of the internal doors were fake. In two cases I was concerned that the amount of force I was applying would rip the door handle from the door and in another I had to put my foot against the frame for leverage - true story. I made it a mission to close all the doors to all the rooms :lol: £450 fekking k

Edited by LiveinHope

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Czech decorator and various foreign (Romanian and Polish I believe) labourers on site yesterday

Yes, son is always moaning about the Eastern Europeans on site, they keep walking of with his equipment. Took him two hours to find his ladder the other day, it was left on a roof :angry: Apparently there is a ratio of about 3:1 foreigner to brit where he's working at the moment (south east)

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Crest Nicholson is apparently suffering the same problem.

The CEO says the supply chain is "struggling to cope" and whereas a year ago all of CN's bricks were made in the UK, 75% are now imported.

And how's this for a telling comment re building workers' rising wages:

"Overall we don’t see it as a big problem because sales price inflation will more than cover cost inflation and there is European labour that can step up to the plate," Mr Stone said.

http://www.ft.com/cms/s/0/05f44074-1f8e-11e3-8861-00144feab7de.html?siteedition=uk#axzz2eKIQdT00

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Any idiot could have seen this coming.

Think about what would happen though if you trebled house building.

There'd be a shortage of builders so labour costs would double build costs, there'd be a immigration flood and loads of natives retraining as builders...

just in time for the scheme to stop when a couple of million houses are built, leaving builders and newly trained builders and high and dry. Another crisis to solve.

:P

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Chap across the road has been a brickie for ten years. He has given up trying to find work (there is none) and has got a job at Heathrow. Journalists make up stories to fill space.

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There's no shortage of any construction tradesmen

All the big builders are struggling for bricklayers as well as brick-barons.. Thats why they are putting there rates up..

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Crest Nicholson is apparently suffering the same problem.

The CEO says the supply chain is "struggling to cope" and whereas a year ago all of CN's bricks were made in the UK, 75% are now imported.

And how's this for a telling comment re building workers' rising wages:

"Overall we don’t see it as a big problem because sales price inflation will more than cover cost inflation and there is European labour that can step up to the plate," Mr Stone said.

http://www.ft.com/cms/s/0/05f44074-1f8e-11e3-8861-00144feab7de.html?siteedition=uk#axzz2eKIQdT00

Note the comment that HPI will outstrip rising construction costs. Shows that building more has the opposite effect and rather than reducing prices inflates the bubble.

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Rightmove is full of off plan new build houses, with red "Help to Buy" stickers, that builders have rushed to market and are desperate to complete before the punters realise they can't really afford them.

Funny you should mention that, I have noticed the same thing... LOADS of newbuild shitboxes in my rightmove search.

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Chap across the road has been a brickie for ten years. He has given up trying to find work (there is none) and has got a job at Heathrow. Journalists make up stories to fill space.

Cannot be trying very hard. The local estate being built near me has 2 10 metre banners asking for brickies.

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Note the comment that HPI will outstrip rising construction costs. Shows that building more has the opposite effect and rather than reducing prices inflates the bubble.

Nonsense. The whole point is that they are putting more money into the market, without building significantly more.

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