Propertymark, the leading membership body for property agents has written to London Mayor candidates highlighting proposals to tackle the unique housing challenges that the capital experiences. Londoners go to the polls on Thursday 2 May 2024 to elect a Mayor and 25 Assembly Members, with housing policies featuring in most candidates manifesto pledges. Propertymark’s plan includes expanding the Mayor’s Energy for Londoners programme to support landlords and homeowners to decarbonise their properties, releasing land held by public bodies for housing development, encouraging the capital’s employers to support workers housing needs and tackling short-term lets thorough greater enforcement. The professional body’s plan for London welcomes candidate pledges for an increase in affordable social housing. However, Propertymark recognise that demand for private rented sector accommodation is not keeping up with supply and more must be done by the Mayor to incentivise landlords – with rent controls must albe avoided. To boost the supply of new homes there must be a greater focus on speeding up planning process and building on land under the Mayor’s control. This will ultimately allow more properties to be built and help make housing in London more affordable. The Greater London Authority, Transport for London and the National Health Service should also release land for residential development and ensure that any development works alongside local needs – including provision for families and older people. Propertymark has also called for the successful Mayor to have greater devolutionary powers to tackle the challenges that the Capital faces.  Commenting, Propertymark’s Policy and Campaigns Officer, Tim Thomas, said: “With a population of over nine million, the highest house sales and rental values in the country and challenges with the supply of all housing tenures, the next Mayor of London needs to use all powers at their disposal to tackle problems the Capital faces. London is facing a housing crisis and more must be done to boost supply across all tenures, work with councils to deliver more homes more quickly, utilise land under the Mayor’s control and provide more support to existing homeowners and landlords to make energy efficiency improvements to their property.” For further details, please click HERE Building, Design & Construction Magazine | The Choice of Industry Professionals

Ground-breaking data analysis by socio-economic experts at Marrons has revealed areas of opportunity for development across England and highlighted the positive impact of specialist and affordable homes as part of a functioning housing market, much of which can be facilitated through market-led development at scale. Utilising the latest ONS Census data (2021) and 2018-based population projections, planning, design and development consultancy Marrons has painted a clear picture of England’s housing need in 2040 in its latest report. Supplementing this is data from local authority housing registers, social housing stock records and extrapolated housing requirement figures using the government’s standard method. Dan Usher, economics director at Marrons, who specialises in housing need evidence, said: “England is poised for significant demographic change over the next two decades, bringing forth new challenges and opportunities in the housing sector. Already, the country has been named as the most difficult place to find a home in the developed world[i], and our ageing population and rising property prices will only exacerbate the problem. “We are nowhere near meeting the government’s minimum housing need of 300,000 properties a year – the average is 215,000 over the past decade – so parliament’s response to its own target is grossly inadequate. However, the obsession with the number is meaningless if hitting targets is prioritised over and above the needs of local populations. “A national housing policy – supported by a proper approach to regeneration, systematic review of green belt and an in-depth understanding of the socio-economic needs of a location – will highlight areas of opportunity and meaningful change. Without this, we will see no movement in the market or developments that do not serve the population’s needs, placing the housing crisis in gridlock.” Regionally, the South East leads the way in housing need outside of Greater London, with demand for more than 950,000 homes by 2040, according to the government’s minimum housing need, which is calculated using the standard method. In contrast, the North East demands the least, with a requirement of 112,388 properties. While the first-time buyer demographic (aged 25-44) is anticipated to decline nationally by 1.6%, this group will make up 30% of adults in England by 2040. Yorkshire and the Humber (10%), the West Midlands (7%) and the South West (1%) will buck the trend with positive growth among this age group. Dan said: “Despite a national decline in numbers, this demographic remains a hugely important segment of the housing market. The first-time buyers of 2040 are teenagers and young adults living with their parents today, so they will be completely new entrants to the housing market. “The consequences of not adequately providing for this segment of the housing market are considerable and will result in many young people moving back into the family home, with delays to household formation and fertility rates in younger adults directly impacted.” The latest figures show that only 16% of the 295,197 social rent[ii] properties owned by local authorities and registered providers that were sold or demolished nationally between 2015/16 and 2021/22 have been replaced. If this continues at its current level, it will result in a net loss of 385,887 homes by 2040. Dan said: “England is losing social housing much faster than it is being built and the losses are mounting up – in fact, according to housing and homelessness charity Shelter, social housebuilding in England being at its lowest rate in decades. Demand is continually outstripping supply, leaving the poorest households with no choice but to enter unaffordable private tenancies – putting them at risk of homelessness. “This deficit is at the heart of this country’s housing emergency, presenting an opportunity for developers and social housing providers to bring projects forward. Helping to build the case for the scheme’s need in order to influence and convince local authorities it needs to be approved is essential, and it is important decision-makers take the crisis seriously. “It is clear we need lots of market housing, but we also need to go beyond this and provide a mix of housing types of tenures. Specialist properties, such as affordable and later living, could be the key to unlocking issues for local authorities if we properly understand the local population now and in the future.” Building, Design & Construction Magazine | The Choice of Industry Professionals

The latest industry research by property development appraisal software, APRAO, has revealed that developers across the South East have been hardest at work making way for future new homes, with the region seeing the largest number of demolitions over the last year, as well as the second largest annual increase.  APRAO analysed Gov data looking at the number of demolitions to have taken place over the last year* across England and which areas of the property market have seen the largest increase in demolitions as developers look to make way for the construction of new-build housing.  The analysis by APRAO shows that some 5,474 demolitions took place over the last year, a drop of -4.5% versus the previous year and the lowest annual total seen over the last 15 years. This suggests an air of hesitation amongst the big housebuilders to clear ground in order to deliver new homes, having faced a landscape of higher interest rates, cooling house prices and subdued buyer appetites due to higher borrowing costs.  However, this decline in demolitions isn’t a trend that has engulfed the entire property market and, in fact, some areas have seen a sharp increase. With 1,729 demolitions taking place over the last year, the South East ranks as the nation’s demolition hotspot. The region has also seen this number climb by 39% year on year, the second highest annual increase of all regions.  However, it’s Yorkshire and the Humber that has seen the largest annual increase, with the number of demolitions seen across the region climbing by 53% year on year.  The North West (+32%) and East Midlands are the only other two regions to have seen an uplift in developer demolitions. Of those to have seen a decline, London has seen the largest reduction, with -58% fewer demolitions taking place over the last year versus the year before.  CEO of APRAO, Daniel Norman, commented: “The demolition of existing structures is often the first step in the development journey and, as a result, demolition data can give us key insight into just where housebuilders are moving forward with their plans to deliver new homes.  This can be done to make way for new homes specifically, as well as the required infrastructure required for a development, or even for a commercial venture.  What the data does highlight is that the volume of demolitions has fallen considerably over the last 15 years, although the decline seen over the last year has certainly been intensified by wider economic headwinds such as higher interest rates and a decline in buyer activity.  However, this trend hasn’t been seen at a national scale and based purely on demolition levels alone, Yorkshire and the South East certainly look poised to see an influx of new homes over the coming years.” Sources and data tables View the full data tables and sources online here. Building, Design & Construction Magazine | The Choice of Industry Professionals

Miller Homes and Citra Living, which is part of Lloyds Banking Group, have joined forces to deliver 100 Private Rented Sector homes at Miller Homes’ Roman Croft development in Priorslee, Telford. Working together they will provide much needed additional new homes for open market rent which will help to meet the significant demand for high-quality rental properties. The 100 homes for Citra at Roman Croft are being developed with environmental sustainability in mind. Every house is entirely gas-free, using an air source heat pump for heating, and is equipped with an electric vehicle charger. They will be delivered in two phases, with 46 in the first phase and 54 in the second, and handover of the homes is expected to be completed by July 2026. Danny O’Connor, Divisional Managing Director at Miller Homes, said: “We are pleased to have agreed a deal with Citra Living to deliver 100 homes for the private rented sector in Priorslee, and hope this forms the foundation for many more in the future. “Miller Homes’ Roman Croft development offers residents a blend of thriving town life and picturesque countryside living, with easy access to both Wolverhampton and Birmingham, and the Shropshire Hills on the doorstep.” Matthew Bench, Group Managing Director – Partnerships at Miller Homes, said: “Building Private Rented Sector homes as part of our business model, like these for Citra Living, allows us to continue diversifying our portfolio, while creating new opportunities for land acquisition and supporting our overall growth ambitions to 6,500 homes per year.” Andy Hutchinson, CEO of Citra Living, said: “Working with Miller Homes to deliver these more energy efficient new homes supports the delivery our goal to help more people live in the place they want and in the kind of modern home they want to live.  “By teaming up with experienced, forward-thinking housebuilders, like Miller, we can bring more, better quality homes in great locations to the market more quickly.” Roman Croft, and the neighbouring Earl’s Grange development, both at Priorslee, offer easy access to the A5 and M54 motorway and are just 5 minutes from Telford town centre. Fantastic local amenities including Telford Central Rail Station and Priorslee Lake are on the doorstep. The wider Priorslee site covers over 75 acres which will provide 1,100 homes. The community will benefit from new amenities including a new community building, a primary school, a local retail centre, a retirement village and land made available for a new GP surgery, as well as football pitches and a skate park. Building, Design & Construction Magazine | The Choice of Industry Professionals

Construction contract rewards remained stable in March following a quarter which had showed a significant increase since the beginning of the year. The value of new contracts was 3% down in February and 1% down on the previous year but remained significantly above the last quarter of 2023, according to analysis from Barbour ABI. Notably, residential contracts were up 60% in February, returning to heights seen in January and were up 62% over the first quarter of the year. Meanwhile, infrastructure fell back to more normal levels following a stellar February but remained 38% up on the same month last year. A new student accommodation facility on Medlock Steet, Manchester will cost £200 million, whilst a new National Grid convertor station at Eastern Green will be built at a cost of £700 million. A new prison at HMP Gartree was also awarded at a cost of £300million. Wates will carry out the work which will commence July 2024. Barbour ABI head of business and client analytics, Ed Griffiths commented:  “When looking across the first quarter of 2024 it has become clear that both the infrastructure and residential sectors have had strong starts to the year as businesses attempt to get projects off the ground, which is a positive signal the construction sector is attempting to emerge from the doldrums of last year. “Interestingly in March, we saw Residential and Infrastructure swapping positions in terms of leading overall contract awards value with £2.4bn and £2bn respectively. Together they are pushing the industry awards upwards.” Elsewhere Healthcare projects were subdued in March following two strong months and Economic conditions continue to stagnate the Hotel and Leisure Sector Applications continue to confound recovery. Planning applications have improved in February after a weak start to the year in January but activity levels in most sectors remain low, highlighting that nervousness remains in the sector to commit to future projects ahead of potential rates cuts and upcoming elections.  Infrastructure has increased 33% since last month and remains strong against its long-term average. However, it has not returned to the highs of the end of last year. Residential applications fell once again from £3.1bn in January to £2.9bn in February. Griffithscontinued: “The enduring story of 2024 so far has been the contradiction between a rise in contracts awarded, sometimes even for projects which have not yet been fully approved, and the continued lack of confidence shown in both in new applications and approvals – which have been contracting since last November. The industry stands at a crossroads where financial and political decisions made at a national level could tip the balance in either direction.” Find out more at https://barbour-abi.com/ Building, Design & Construction Magazine | The Choice of Industry Professionals

The latest industry research by property development appraisal software , APRAO, has revealed that all but one of the big housebuilders has seen a reduction in the volume of land banking plots held on an annual basis.  APRAO analysed the latest annual reports of the seven major UK property developers, looking at total land banking plots held* and how this total compares to the previous year.  The figures show that some 501,691 land bank plots are currently held by the big housebuilders, a reduction of -5.4% on the 530,378 held the previous year.  Barratt Developments has seen the largest decline in the number of plots held within its land bank, down -13% year on year.  Berkeley Group has also seen one of the largest land bank reductions, with total plots falling by -12.3% year on year.  Persimmon has seen the third largest reduction at -5.7%, although with a total of 82,235 plots still held, it does rank as the housebuilder with the second strongest book in this respect.  Redrow (-4.5%), Taylor Wimpey (-3%) and Vistry Group (-1.7%) have also seen a year on year decline in total land bank plots held. In fact, just one housebuilder has seen an increase, albeit a marginal one. Bellway’s land bank currently sits at 98,164 plots, the largest of all the major housebuilders, having seen this total increase by 0.5% year on year.  CEO of APRAO, Daniel Norman, commented: “While 2023 proved to be a particularly tricky one for the UK property market, the overarching expectation was that 2024 would bring a greater degree of market stability and that’s certainly what we’ve seen in recent months. Mortgage approvals are climbing as buyers return to the mix and house prices have also started to improve, driven almost entirely by a buoyant new-build market. It’s clear that the nation’s big housebuilders have acted in anticipation of these improving market conditions, utilising their existing land banks with the aim of delivering additional stock to market in order to help fuel this improving market sentiment.  Of course, with other factors such as higher interest rates still presenting an obstacle, there has been less urgency to refresh land bank stock levels. But with the base rate forecast to fall this year, it’s likely that 2024 will see developers renew their stock pipeline when the time is right.” Sources and data tables Building, Design & Construction Magazine | The Choice of Industry Professionals