New British Homes, Building New Homes in England, Building, Architect, Project, Image
New UK Housing: Housebuilding News
UK Residential Property Expansion + Housebuilding Issues: Reaction to Budget
30 Sep 2020
Impact Of Covid-19 on UK Housebuilding
New Figures Show Impact Of Covid-19 On Housebuilding Rates
Quarterly housing starts and completions lowest since 2000
Industry calls for assistance to construction sector
Wednesday 30 September 2020 – The number of new build homes started or completed in England between April and June 2020 fell to their lowest levels since the year 2000as Covid-19 hit the construction industry, according to new figures published today.
The figures also show, despite Covid, a longer-term decline in housing starts and completions, with the number of homes started or completed in the year to June 2020 also showing a sharp fall.
According to the Ministry of Housing, Communities and Local Government, the indicators of new housing supply figures should be regarded as a leading indicator of overall supply.
- The number of dwellings where building work has started on site was 15,930 in April to June 2020 – a 52% decrease when compared to the last quarter. It also follows a recent trend of a slowdown in growth with six of the last six quarters showing a decrease. Starts are 67% below their March quarter 2007 peak and are 7% below the previous trough in the March quarter of 2009. It is the lowest quarterly starts figure in the seasonally adjusted time series (which begins in the year 2000).
- There were 121,630 estimated new build dwellings starts in the year to June 2020, a 26 per cent decrease compared to the year to June 2019.
- The number of dwellings completed on site was 15,390 in April to June 2020. This is a 62% decrease compared to the last quarter and 64% below their level in the same quarter a year ago. Completions are now 67% below their peak in the March quarter 2007 and 37% below the previous trough in March quarter 2013. It is the lowest quarterly completions figure in the seasonally adjusted time series (which begins in the year 2000).
- An estimated 147,180 new build dwellings were completed in the year to June 2020, a decrease of 15 per cent compared to the year to June 2019.
Clive Docwra, managing director of property and construction consultancy McBains said:
“Today’s statistics bear out the huge impact that Covid-19 – and in particular the Spring lockdown – has had on housebuilding rates.
“The government target of building a million new homes in the new five years was always going to be a steep challenge, but the pandemic has dealt a heavy blow to that ambition.
“The industry is now facing a double-whammy – trying to recover from the impact of Covid but also suffering from the uncertainty over a Brexit deal – with investors holding off putting money into new developments until the picture on a withdrawal agreement becomes clearer.
“The Government will no doubt point to its recent planning White Paper as the answer to building more homes, saying that it will mean ‘permission in principle’ will be given to developments on land designated for renewal to speed-up building, but the uncertainty and resulting fluctuating values driven by Covid and Brexit are reducing the incentive on developers to build in the short term.
“The government could address this by temporarily staggering or deferring Section 106 planning obligations – where developers are asked to provide contributions for community infrastructure – so that developers are encouraged to complete housebuilding projects as soon as possible.”
13 August 2020
UK Residential Market News
Rental Sector Strength Comment
We post comment below in response to the RICS monthly residential market survey.
Elisabeth Kohlbach, CEO of Skwire comments:
“Doom and gloom surrounding the news that the UK residential market is set for a ‘bust’ in the coming months overlooks a bright spot in a major segment of the residential market – the rental sector.
“The PRS sector is a growing part of the UK’s housing mix and the demand for this part of the market is not going away. Moreover, with lenders introducing a range of restrictions to cope with the spike in demand for mortgages following the announcement of stamp duty relief, many would-be buyers are struggling to get on the ladder and will no doubt turn to the rental market once again.
“While traditional destinations for BTR investors, such as London, may no longer be as attractive as remote workers flock to towns and cities beyond the capital, investors should look to the regions, which offer an exciting and untapped opportunity. Institutional investors should look beyond the traditional high density city-centre developments and seize the opportunity to tap into a rich pool of existing stock across the UK.”
7 August 2020
UK house prices rise in July
Halifax House Price Index for July 2020
Halifax has this morning released its House Price Index for July, showing that house prices have risen month-on-month and year-on-year in reaction to the Stamp Duty Land Tax holiday introduced earlier in the month.
While this is positive news for the sector, can this momentum be maintained?
Jamie Johnson, CEO of FJP Investment
“Today’s House Price Index shows that the stamp duty holiday is having its desired effect, encouraging buyers and sellers to make a cautious return back to the property market. The release of pent-up demand is driving up house prices, slowly making up for the losses that were incurred at the height of the pandemic.
“The big question now is whether this initial burst in activity can be maintained over the next few months. Will house prices continue to grow; or will the momentum fizzle out? There is no clear answer at present. Nonetheless, today’s House Price Index makes the case for cautious optimism.
“Importantly, I do not believe the coronavirus has dampened investor demand for UK real estate. Property’s resilience and ability to quickly recover any losses in value in times of crises makes it a top asset class for both domestic and overseas buyers. Once there is greater certainty about the future of COVID-19 and the post-pandemic recovery, I anticipate buyer demand to return in full force.”
8 July 2020
UK Stamp Duty Changes
8 July 2020
Chancellor’s ‘mini budget’ for green jobs misses mark on transport and housing, says to CPRE
Commenting on the Chancellors ‘mini budget’, Tom Fyans, campaigns and policy director at CPRE, the countryside charity, said:
‘While we have seen promising starts on energy efficiency and shoring up rural hospitality businesses, the Chancellor has missed major opportunities to begin building back better when it comes to transport and housing investment.’
Read more at UK Summer Statement Response
8 July 2020
RIBA reacts to Chancellor’s ‘Plan for Jobs’
“The RIBA has long advocated for a ‘green’ post-COVID recovery, so I welcome the Chancellor’s efforts to put sustainability front and centre of today’s announcements.”
Read more at RIBA UK News
8 July 2020
UK Stamp Duty Changes
View from Metropolitan Thames Valley Housing on the stamp duty changes:
Kush Rawal, Director of Residential Investment from Metropolitan Thames Valley Housing comments: “We welcome the Chancellor’s stamp duty holiday, which makes shared ownership homes an even more attractive option for people looking to own their own home. Removing stamp duty from almost all initial share purchases means that key workers will be able to buy a shared ownership home with as little as two months of rent as their deposit.”
6 July 2020
Is ‘build build build’ best for England’s planning system?
Alister Scott, Professor of Environmental Geography and an expert in urban planning and infrastructure, writes for The Conversation on proposals to change the UK’s planning system.
18 Jun 2020
Timber Frame: Accommodating The Differential
With sales of timber homes and buildings heading towards £1bn in the next 12 months*, Andy Swift, sales and operations manager, UK & ROI for ISO-Chemie, considers sealant tapes for timber frame structures and accommodating differential movement:
3 Jun 2020
UK Architects welcome landmark ARCO Report
We post comments from Mark Rowe, principal at Penoyre & Prasad and Félicie Krikler, director at Assael Architecture in support of ARCO’s landmark report launched earlier today:
Mark Rowe, principal at Penoyre & Prasad, said: “This research highlights the shift towards a more collective way of living – integrating purpose-built accommodation with access to healthcare and facilities that can help maintain independence.” – read more at:
26 Mar 2020
Housebuilding Rates Fall – Even Before Coronavirus Impacts
Thursday 26th of March 2020 – The number of new build homes started and completed in the last quarter of 2019 fell below government targets, according to new government figures published today – and the industry says the coronavirus pandemic is set to impact these further.
According to the Ministry of Housing, Communities and Local Government, the new build dwellings figures should be regarded as a leading indicator of overall housing supply.
Today’s figures show that:
- On a quarterly basis, new build dwelling starts in England were estimated at 34,260 (seasonally adjusted) in the latest quarter, an 11 per cent decrease compared to the previous 3 months and a 17 per cent decrease on a year earlier. Completions were estimated at 44,980 (seasonally adjusted), a 1 per cent decrease from the previous quarter and 3 per cent higher than a year ago.
- Annual new build dwelling starts totalled 151,020 in the year to December 2019, a 10 per cent decrease compared with the year to December 2018. During the same period, completions totalled 178,800, an increase of 9 per cent compared with last year
- All starts between October and December 2019 are now 99 per cent above the trough in the March quarter 2009 and 30 per cent below the March quarter 2007 peak. All completions between October and December 2019 are 78 per cent above the trough in the March quarter 2013 and 7 per cent below the March quarter 2007 peak.
Clive Docwra, Managing Director of leading construction consulting and design agency McBains, said:
“The government’s ambitious housebuilding target – delivering a million homes in the next five years – was always going to be extremely challenging, and the latest statistics bear this out. However, the impact of the COVID-19 pandemic will mean this is now virtually impossible.
“Many sites are empty, supply chains have been disrupted and multi-million pounds worth of private investment is on hold for the foreseeable future. That will knock back housebuilding rates months, if not years.
“The government has already announced an unprecedented package of measures to help support business, but once we’ve turned the tide on the virus further help, such as tax incentives, will be needed to get the UK building again.”
Previously on e-architect:
24 Nov 2017
UK Housebuilding Policy
UK Government Approach to Housing Shortage – Budget Reaction
The UK Chancellor announced a raft of measures aimed at significantly increasing levels of home building and “reviving the British dream of home ownership”.
Key amongst the Chancellor’s statements were the abolition of Stamp Duty Land Tax on homes under £300k for First Time Buyers, £15.3 billion of new financial support for house building over the next five years (which includes money for the government to buy land as well as delivering supporting infrastructure) and more money to help SME builders.
This is in addition to the £10bn extra funding already announced for the English version of the Help to Buy shared equity scheme.
Some reactions to this week’s UK Budget from key built environment representatives:
“In essence the abolition of Stamp duty is the kind of sweeping move we needed to provide hope at the bottom end of the market and hopefully helping towards the aspirational 300K homes per year. As an employer, seeing younger architects get a foothold on the housing ladder is a strong hope and this is surely a welcome hand-out to bring the youth vote around for the Conservatives.
We would like to see more certainty on how the £44Bn figure to aid housebuilding will actually materialise into capital expenditure from Central or Local Government. The budget won’t solve the disconnect in planning, unless some of that cash is pumped into increasing resources in planning departments.”
Graham Hickson-Smith, Commercial Director, 3DReid
“It’s good to see the government taking the housing crisis seriously with the final quarter of the speech devoted to this one subject, an impressive commitment to extra spending of £44bn over five years and the headline grabbing finale of the reduction in stamp duty. The devil though will, as always be in the detail.
The lifting of HRA caps is good in principle but there are no details at all, while the £34m for skills training sounds like a drop in the ocean when we are faced with a huge likely loss of construction workers post-Brexit. Other measures announced include the review to be chaired by Oliver Letwin which may, helpfully, lay to rest the myth that land banking is a serious problem – most developers being concerned to turn over their capital as fast as possible rather than tie it up in dormant sites.
Finally there is the reduction in stamp duty for first time buyers, which will undoubtedly appeal to younger voters, but the same measure would probably be much more effective, economically, as an incentive to retired people to downsize, releasing under-occupied houses into the market.”
Richard Morton, Richard Morton Architects
“We really welcome the Chancellor’s moves to boost the supply of badly-needed new homes. Policies which aim to lower the cost of land and bring forward more building sites, particularly in urban areas well served by public transport, are good news – and preferable to policies which make it easier for some people to afford high house prices.
But all of this new housing needs to be sustainable, in environmental terms, and here the government’s policies are seriously lacking. It wants five new garden cities, but has said virtually nothing about what defines them.
The Budget has not addressed the critical need for green and low-carbon infrastructure and low-impact homes, not just on green fields, but everywhere. Nor has this budget addressed the need to upgrade and retrofit millions of our existing energy-inefficient homes.”
Sue Riddlestone OBE, Chief Executive of Bioregional
22 Jan 2016
UK Housing Expansion
Homebuilding in Great Britain
The Ministry of Defence has put 12 sites on the block to provide land for up to 15,000 new homes.
Government Defence Minister Mark Lancaster said the land sale was expected to raise £500m, which will be ploughed back into frontline defence budgets, reports www.constructionenquirer.com.
The sale is the first tranche of more ambitious plans to support the government’s ambition to build 160,000 homes by 2020.
The MOD, which owns around 1% of all UK land, plans to slash the size of its built estate by nearly a third, with its current holdings stretching to 452,000 hectares.
As part of that plan, the Ministry has committed to generating £1bn through land sales during this parliament and contributing up to 55,000 homes.
Ministry of Defence Estate Sell-off
MoD estate sell-off – tranche 1
12 sites placed on the market:
– Kneller Hall in Twickenham
– Claro and Deverell barracks in Ripon
– RAF sites Molesworth and Alconbury in Cambridgeshire, and Mildenhall in Suffolk.
– Lodge Hill in Kent
– Craigiehall in Edinburgh
– HMS Nelson Wardroom in Portsmouth
– Hullavington Airfield in Wiltshire
– RAF Barnham in Suffolk
– MOD Feltham in London
The MOD will announce further sites in due course, with a full list published in the Footprint Strategy later in 2016.
UK Government Housing Policy
UK Government Design Advisory Panel – New Housing Design Quality
Chair of RIBA Housing Group, Andy Von Bradsky, represented RIBA this week on the government’s Design Advisory Panel. The panel was set up under the coalition government and has been re-formed by the current government to advise on key policy issues, reports the RIBA.
The RIBA has welcomed the Prime Minister’s announcement that a Design Advisory Panel is being set up to ‘set the bar on housing design across the country’ and is looking forward to working with other panel members.
David Cameron announced the creation of the panel this week when he confirmed the go ahead for a new Starter Homes scheme, though the panel will inform government policies on housing design nationally.
Fleet Street Hill Housing in London by Peter Barber Architects:
image from architect
The DCLG has already confirmed that panel members will include Sir Terry Farrell, classicist Sir Quinlan Terry and philosopher Roger Scruton alongside nominated representatives from the RIBA, RTPI, Design Council and Create Streets.
The panel will be chaired by ministers, so there are high hopes that it will have a genuine influence on policy.
The Government says the panel will act as a sounding board, so that the housing and design industry can discuss policy issues with ministers and senior government officials. Its remit will cover:
Emerging housing and planning policy to ensure that good design is considered and embedded from the outset.
Delivery of housing and planning policy to ensure that good design is achieved through Government’s programmes.
Emerging industry issues and barriers to good design in housing delivery.
Inspiring design of Grand Large Housing Dunkirk:
photo from ANMA/Agence Nicolas Michelin & Associés
‘We welcome the response from Government to the Farrell review and our own recommendation to have more design advice available to Government when shaping policy.’ said RIBA Head of External Affairs Anna Scott-Marshall.
‘It is encouraging that the Government, industry and other professionals will work in collaboration to ensure that we build the right kinds of homes in the right kinds of places.’
Farrell is also enthusiastic and said the panel has the potential to make a real difference.
‘It builds on the recommendations of the Farrell Review (http://www.farrellreview.co.uk/), which highlighted the need for more proactive planning and better placemaking as we attempt to address the housing crisis, with radically higher priority given to landscape, sustainability and the public realm.’
Stadthaus at 24 Murray Grove, London, by Waugh Thistleton – constructed entirely in timber, the nine-storey high-rise is the tallest timber residential building in the world
Stadthaus photo : Will Pryce
Murray Grove Housing
UK Housing Links:
English Architecture Designs – chronological list
Contemporary British Homes
Recent British Home Designs
Black House, Kent, South East England
Architect: AR Design Studio
image courtesy of architects
Black House in Kent
A House for Essex, Essex, South East England
Design: FAT Architecture and Grayson Perry
photograph : Jack Hobhouse
A House for Essex
Balancing Barn, Suffolk, South East England
photo : Living Architecture
Balancing Barn Suffolk
Hurst House, Buckinghamshire, Southern England
Design: John Pardey Architects with Ström Architects
photo : Andy Matthews
Contemporary North European Homes
Recent North European Houses
Comments / photos for the New UK Housing Shortage – Current British Housebuilding page welcome