The Competition and Markets Authority’s investigation into housebuilding noted that councils’ local plans were crucial for gauging the number of permission approvals needed to meet housing need. The HBF has pointed out that since housing and levelling up secretary Michael Gove’s decision to make housing targets ‘discretionary’ last Autumn, 64
Southwark Council and Bouygues UK have celebrated reaching the ‘topping out’ stage at the significant housing project Tustin Estate alongside London’s Deputy Mayor for Housing and Residential Development Tom Copley. Phase 1 of the project is 100% replacement affordable homes with all existing residents moving into new homes. Tustin Estate,
As the rental market braces to once again feel the cold shoulder where Budget related housing initiatives are concerned, the latest research by Zero Deposit, the alternative to a tenancy deposit, has revealed the consequence of a homebuyer focussed Government, as privately rented homes as a proportion of all dwellings
On the eve of the Spring Budget, construction industry experts from Birmingham City University (BCU) have called on the Chancellor to kick start the new build homes sector in order to stimulate economic growth and combat the UK’s housing crisis. Mike Leonard, Visiting Professor from the Centre for Future Homes
Esh Construction has completed work on a £3 million project and has handed over 20 new affordable homes at Fir View Gardens in Sheffield. Working on behalf of Great Places Housing Group, the development has been delivered on a vacant piece of land off Osgathorpe Drive, close to the Earl
Nathan Emerson, CEO Propertymark comments… Propertymark are extremely concerned to see reports within the news of a rumoured £300m attack on landlords within the budget, all at a time when many have already left the sector and many more are just about holding on. Just like traditional homeowners, inflation and
Local residents in the heart of Westminster are set to benefit from 52 new affordable homes overlooking the newly regenerated Battersea Power Station. Residents from the Churchill Gardens Estate in Pimlico were invited to a ‘topping out’ ceremony earlier this month for Phase One of the scheme, which will provide
Future supply of homes coming forward across all tenures threatened as cuts to housing and planning budgets passed Tuesday’s passing of the Scottish Budget 2024 – 2025 at Holyrood will perpetuate housing inequality across the country and limit the number of new homes coming forward across all tenures, says sector
The complexities of the government’s leasehold reform proposals affecting millions of homeowners came under the spotlight at a seminar organised by Coventry and Warwickshire’s law firm Brindley Twist Tafft & James and property experts ehB Residential Surveys. Forty invited guests – including estate agents, surveyors, private finance advisors and conveyancing
Birchgrove and Hybr have announced an industry-first intergenerational living scheme which will see students and key workers live alongside retirees in the same purpose-built, privately rented retirement development. Ayrton House is a new 60-apartment rental retirement community in Mill Hill, North London. When launched in October this year, 16 apartments
The Competition and Markets Authority’s investigation into housebuilding noted that councils’ local plans were crucial for gauging the number of permission approvals needed to meet housing need. The HBF has pointed out that since housing and levelling up secretary Michael Gove’s decision to make housing targets ‘discretionary’ last Autumn, 64 councils have paused or withdrawn their plans. The number of plans adopted last year was the lowest for a decade. Planning consultancy Lichfields’ research points to the fact that this could cause a drop of 77,000 homes a year. The trade body said most councils who have done this are concentrated in southern England and accused Mr Gove of pandering to ‘nimbyism’. The Housing Pipeline Report shows the number of units approved in 2023 was the lowest since 2015 in the Southeast, the lowest since 2013 in London and the lowest since 2012 in the Southwest. Year-on-year, each of these regions saw falls of 13, 26 and 18 per cent respectively. The same regions have already seen annual falls of more than ten per cent in new build completions. Unit approvals for the North of England dropped 18 per cent for 2023 compared to 2021, 23 per cent for the Midlands and 28 per cent for the South of England. Brokers Hank Zarihs Associates said development finance lenders were concerned the planning process had become so complicated and underfunded causing unacceptable delays for SME housebuilders. Developers were disappointed the chancellor Jeremy Hunt failed in last week’s budget to help first-time buyers with getting a deposit together to enable them to get their foot on the property ladder. They argue this is a further blow to the government’s target of building 300,000 a year by the mid-2020s. The construction industry is also blaming Natural England’s policy on maintaining nutrient neutrality of rivers across different parts of England for halting 150,000 new homes. They argue that intensive farming rather than housebuilding is the main pollution culprit. Building, Design & Construction Magazine | The Choice of Industry Professionals
Southwark Council and Bouygues UK have celebrated reaching the ‘topping out’ stage at the significant housing project Tustin Estate alongside London’s Deputy Mayor for Housing and Residential Development Tom Copley. Phase 1 of the project is 100% replacement affordable homes with all existing residents moving into new homes. Tustin Estate, the first large-scale project procured through Pagabo’s Developer Led Framework, will provide nearly 700 new homes. The scheme includes 250 replacement council homes and shared equity properties, 220 additional council homes including keyworker homes, and 220 homes for private sale. It will include a new central park, refurbishment of existing council homes and around 1,800 sqm of commercial floorspace. The public realm and landscaping across the estate will be significantly enhanced and will include new pedestrian, cycle and vehicular routes throughout, greenways, and improvements to Tustin Common. Work commenced in autumn 2022 and the whole project is planned to complete in 2030. The partners will deliver the project in four phases. Community engagement has been central to the project from the outset. The mandate for the project was established through a community ballot and residents have so far been able to influence the design, construction strategy and social value activity at masterplan level and for the details of phase 1. Extensive consultation has already taken place to gather residents’ feedback and input on the details of phase 2, with the application for ‘reserved matters’ planning permission being submitted later this year. Engagement will continue throughout the later phases. Giving back to the local community is a key priority for Southwark Council and Bouygues UK. Bouygues UK have held workshops for young people in the local area and educational workshops including interview skills at London South Bank University, a pre-employment course and longer-term apprenticeships and training opportunities. Local family events and excursions are regularly held in the community. Employing local labour is also a key priority with positions such as resident liaison officer and traffic marshall given to local people. Phillippa Prongué, Bouygues UK’s Managing Director for London and the South East said, “It’s amazing to think that it was only last summer we were breaking ground here in the sunshine and construction work had only just started. It’s fantastic to see the progress that’s been made in that time. We are proud that this scheme is very much being designed with the residents, for the residents, with collaboration at the heart. When everybody pulls together and the community comes together in the way that it has done here, we can achieve great things. Thank you all for being here today to celebrate how far we’ve come.” Deputy Mayor for Housing and Residential Development, Tom Copley, said, “I was delighted to join the Tustin community for the topping out ceremony of one of London’s most ambitious and exciting regeneration projects. “This project is not only delivering new, modern homes for existing residents but also creating more than 200 of the new council homes Londoners so desperately need, alongside a host of new amenities and job opportunities for the local community. The Tustin Estate is a shining example of how we are working together to build a better, fairer, more prosperous London for everyone.” The Leader of Southwark Council, Cllr Kieron Williams, said, “I’m thrilled to celebrate this important progress milestone on a redevelopment where we’re building new homes for existing residents as well as additional new council homes. We’ve worked with residents to bring about the much-needed transformation of Tustin Estate and it’s inspiring to see these ideas, plans and visions start to become tangible reality. I look forward to seeing residents enjoy their new warm, dry, safe, sustainable homes and to seeing this community continue to go from strength to strength.” Andrew Eke, Chair of Tustin Estate’s Community Association said, “Here at Tustin Estate, the council, Bouygues UK and the residents are all working together as a unit. I am so proud that the people living here, myself included, have been involved at every stage of the project and have helped shape it. We’ve been kept up to date with progress through our weekly site walks, monthly resident project group meetings, drop-in sessions, and community events. In fact, some people living here now have jobs on the project. Alongside Bouygues UK and Southwark Council, we have shown, when you look for solutions and you don’t give up, miracles can happen.” The new estate is expected to achieve a 94% reduction on carbon emissions when in use, with clean energy being supplied by the local waste-to-energy district heating network, high-insulation building fabric, solar panels, SUDs, and air-source heat pumps for individual houses. Building, Design & Construction Magazine | The Choice of Industry Professionals
As the rental market braces to once again feel the cold shoulder where Budget related housing initiatives are concerned, the latest research by Zero Deposit, the alternative to a tenancy deposit, has revealed the consequence of a homebuyer focussed Government, as privately rented homes as a proportion of all dwellings have fallen to their lowest percentage in a decade. Zero Deposit analysed Gov data on dwellings stock levels*, looking at the level of privately rented properties available to tenants across the rental market in England and what proportion of total dwellings these homes accounted for, as well as how this level of supply has changed over the years. PRS stock has been increasing The latest figures show* that there are an estimated 4.9m privately rented homes found across England’s rental market. The good news is that this figure has been largely increasing over the years, up from 4.5m homes a decade ago (2013) and considerably higher than the £2.5m available in 2003. However, for many years, the nation’s tenants have been playing second fiddle to homeowners, with the Government launching initiative after initiative aimed at fuelling homebuyer demand, while largely ignoring private rental sector supply, causing the cost of renting to spiral to dizzying heights. Rents on the up In fact, previous research by Zero Deposit found that the average tenant across England is now paying £994 per month in rent, a cost that has climbed by 5% in the last year alone, 37% over the last decade, and is expected to increase by a further 16% by 2030. The latest figures from Zero Deposit highlight the long-term issue caused by the Government’s obsession with homeownership. Homeowner supply overtaking PRS stock supply In the last five years, the number of PRS dwellings found across England has crept up by just 2.4%. During the same period, the number of owner occupied dwellings has climbed by more than double that, up 5%. In the last year alone, PRS stock levels have increased by just 0.2% versus a 1.3% jump in owner occupied dwellings. PRS stock now accounts for lowest proportion of all dwellings in a decade As a result, privately rented properties now account for just 19.4% of all homes across England, the lowest proportion seen since 2013 when they accounted for 19.2% of the total market. What’s more, this proportion has largely been in decline since a peak of 20.3% in 2016. A regional analysis conducted by Zero Deposit shows that tenants in some regions are worse off than others. In fact, across both Yorkshire and the Humber (18.6%) and the South West (18.1%), the number of PRS homes as a proportion of all housing stock is currently at its lowest levels since 2011, while in the East of England (17.1%) and the North West (17%) its at its lowest since 2012. In fact, just two regions have seen the level of PRS stock available as a proportion of all housing climb steadily over the years – London and the North East. In the North East, privately rented homes now account for 17.8% of all dwellings, the highest percentage seen in the last 20 years. At 29.5% of total stock, London is home to the highest proportion of privately rented properties of all regions and has seen this percentage climb consistently over the years. However, unlike the North East which is home to the nation’s most affordable cost of renting, London is home to the highest average rent in England. Sam Reynolds, CEO of Zero Deposit commented: “We may have seen a consistent increase in the volume of privately rented homes reaching the market over the last two decades, but today’s market is dominated by a chronic undersupply of rental properties despite an overwhelming level of tenant demand. This market imbalance has been one of the key factors that have caused rents to spiral beyond the realms of affordability and it’s a clear indictment of multiple cabinets that this issue has continued to worsen. Over the last five years, in particular, the supply of owner occupied homes has increased at a far greater rate than privately rented properties and renters will be forgiven for thinking that the Government is more focussed on homeowners than the real issues facing tenants today. The sad reality is that we expect it will be more of the same in this week’s Budget, as we prepare for yet more ill-advised initiatives aimed at short-term benefits to win votes as we approach an election , rather than address the root causes for those struggling within the rental market who continue to be left out in the cold.” Data tables and sources Data tables and sources can be viewed online, here. Building, Design & Construction Magazine | The Choice of Industry Professionals
On the eve of the Spring Budget, construction industry experts from Birmingham City University (BCU) have called on the Chancellor to kick start the new build homes sector in order to stimulate economic growth and combat the UK’s housing crisis. Mike Leonard, Visiting Professor from the Centre for Future Homes at BCU, said: “Jobs are being lost, factories are shutting and we have massive shortfall in the delivery of new homes as homelessness and frustration grows amongst those directly affected. “Failure to act now will see a major loss of skills and manufacturing capacity. This will leave industry less able to meet demand when the market improves and more reliant on material imports and migrant labour. “The budget on Wednesday offers the Chancellor the opportunity to pull the levers to switch the housing market back on and inject swift growth into our stalled economy. “The multiplier effect of new build housing creates jobs and social value. Now is also the time to invest in retrofitting our existing homes and buildings. “The industry has the manufacturing capacity, skills, and oven-ready projects. The UK has a golden opportunity to grow the economy and get Britain building the homes and infrastructure this country so desperately needs.” Dr Steve McCabe, Associate Professor in Strategy, Management and Marketing at BCU, echoed Dr Leonard’s concerns. “At a time when we need to focus on economic growth and boosting productivity, politicians across the political spectrum need to focus on construction as a catalyst to drive the economy,” said Dr McCabe. “Construction contributes nearly 9% of GDP and critically has the potential to benefit every community across the UK.” According to the Organisation for Economic Co-operation and Development (OECD), new mortgage lending has declined markedly which has significantly reduced demand for houses built by developers. Money tightening, which has led a consequential dip in confidence and slowdown in commercial and infrastructure projects, has combined with a knock-on impact on demand for labour and materials in new housing and home renovation that is undermining economic growth. According to Dr McCabe, there is no lack of demand for housing, however, he believes that consumers that are already suffering from the effects of the ‘cost of living crisis’ feel under pressure because of what are considered excessive mortgage repayments: “New purchasers are confronted by an affordability conundrum resulting from lack of market activity as sellers hold off moving,” he added. “What’s apparent is that the high cost of financing for companies in the UK construction, particularly for smaller companies, is making liquidity a tremendous challenge. “Without urgent intervention from the chancellor tomorrow, we’re likely to see an increase in insolvencies, administrations, company restructuring, factory closures and redundancies in construction which is so fundamental to this country’s economic development and collective prosperity.” Building, Design & Construction Magazine | The Choice of Industry Professionals
Esh Construction has completed work on a £3 million project and has handed over 20 new affordable homes at Fir View Gardens in Sheffield. Working on behalf of Great Places Housing Group, the development has been delivered on a vacant piece of land off Osgathorpe Drive, close to the Earl Marshal Recreation Ground. The two and three-bedroom homes have been built by Esh Construction for affordable rent and include associated parking and landscaping in Sheffield. A fabric-first approach was used in both design and construction, with maximising energy efficiency being a top priority. Esh Construction’s Operations Director, Simon Woodward, said: “Fir View was the first contract we were awarded through the Innovation Chain North framework, and it’s proved a real success for Esh in delivering energy efficient homes while providing added benefit to the community through school engagement, volunteering and community funding.” A comprehensive social value plan has been delivered which has seen 133 weeks of employment delivered for residents within 10 miles of the site and 108 weeks of employment provided for previously unemployed people in the area. A further 250 learner hours were delivered in partnership with local schools and colleges while four full-time apprentices were hired, contributing to more than 230 apprentice training weeks during the project. Fir View Gardens is one of the developments that Great Places Housing Group is delivering in South Yorkshire as part of the housing association’s commitment to build additional affordable homes in the area. Other projects include 50 homes at Riverdale Park in Doncaster and 51 apartments at London Road close to Sheffield city centre. Building, Design & Construction Magazine | The Choice of Industry Professionals
Nathan Emerson, CEO Propertymark comments… Propertymark are extremely concerned to see reports within the news of a rumoured £300m attack on landlords within the budget, all at a time when many have already left the sector and many more are just about holding on. Just like traditional homeowners, inflation and interest rates have hit landlords with force and there needs to be recognition from the UK Government that to provide high quality homes, whether they be short term lets or longer-term housing, the system must be workable. It is unacceptable there is constant aim being taking at landlords to the point the viability of the entire system is becoming seriously questionable for both existing landlords and future investors. Building, Design & Construction Magazine | The Choice of Industry Professionals
Local residents in the heart of Westminster are set to benefit from 52 new affordable homes overlooking the newly regenerated Battersea Power Station. Residents from the Churchill Gardens Estate in Pimlico were invited to a ‘topping out’ ceremony earlier this month for Phase One of the scheme, which will provide 34 modern supported housing units for older residents. In all, the development will provide a net uplift of 21 new units of accommodation within Westminster’s Churchill Gardens Conservation Area, on the banks of the River Thames, overlooking the iconic Battersea Power Station. The development is on the site of the former Balmoral Castle Pub and the existing Darwin House building. The new units are self-contained flats for residents aged over 60 and will be twice the size of the accommodation at the existing Darwin House. They include communal facilities, offer social activities and have guest rooms for visitors. The new homes meet Westminster’s Housing our Ageing Population Panel for Innovation (HAPPI) standard, which helps architects design homes to meet the individual needs of residents in this type of housing. The new buildings have been also designed with the council’s net zero targets in mind and include triple glazing, air source heat pumps, in-built shading and solar panels. Phase Two will see the construction of Block B which will provide 18 general needs affordable housing units for London Living Rent. Both blocks will benefit from access to landscaped green space in the Churchill Gardens Estate. The scheme delivers on Westminster’s commitment to delivering truly affordable housing, which forms part of the ‘Fairer Westminster’ strategy – the council’s vision for building a city that supports and celebrates all of its communities. The council is currently embarking on a major affordable housebuilding drive and this year expects to complete 418 homes, of which 340 will be affordable – largely for social rent. Phase One of the Darwin House development was delivered in partnership with Wates Residential, who took possession of the site in June 2022. Liza Begum, Councillor for Pimlico South and Cabinet Member for Housing Services, said: “We are delighted to see our ambitious plans for the new Darwin House development reach this important milestone. “We are proud that, working along with members of the construction liaison group and residents, we have been able to bring forward a scheme that will deliver much needed affordable homes in the borough. “We are also really pleased that the first people to benefit from these high-quality, energy efficient homes will be the residents of the original Darwin House.” Nick Williams, Regional Managing Director, Wates Residential, said: “We are pleased to be celebrating this important milestone with Westminster City Council, in the regeneration of the Churchill Gardens community. “This development will provide not just new, comfortable, affordable homes but also significantly benefit the local community by supporting economic growth, promoting opportunities for employment, and creating a safer, brighter future for residents.” Building, Design & Construction Magazine | The Choice of Industry Professionals
Future supply of homes coming forward across all tenures threatened as cuts to housing and planning budgets passed Tuesday’s passing of the Scottish Budget 2024 – 2025 at Holyrood will perpetuate housing inequality across the country and limit the number of new homes coming forward across all tenures, says sector body Homes for Scotland (HFS). With a cut of 27.7% to the Housing and Building Standards Budget and further cuts of 26% and 43% to the Affordable Housing Supply Programme and Planning Budget respectively confirmed, HFS Director of Policy Fionna Kell said: “Whilst we welcome the Deputy First Minister’s commitment that housing will be treated with priority should further funds become available as a result of announcements by the Chancellor next week, the Budget passed today will only serve to deepen the housing inequality being felt across the country and risks losing the significant socio-economic benefits that come through increased home building across all tenures. “The cuts come at a time when multiple Local Authorities have declared housing emergencies and recent independent research has shown that there are 693,000 Scottish households facing at least one form of housing need. “Instead of cutting housing budgets, now is the time to maximise the wide-ranging socio-economic benefits offered by ensuring Scotland has the homes it needs to meet the needs of its people.” Building, Design & Construction Magazine | The Choice of Industry Professionals
The complexities of the government’s leasehold reform proposals affecting millions of homeowners came under the spotlight at a seminar organised by Coventry and Warwickshire’s law firm Brindley Twist Tafft & James and property experts ehB Residential Surveys. Forty invited guests – including estate agents, surveyors, private finance advisors and conveyancing lawyers were among those who attended the event at the Warwick Arms Hotel. The event follows Michael Gove’s plans to shake up England and Wales’s ‘feudal’ leasehold system were announced in the King’s speech in November. Gove said the proposed Leasehold Reform Act would overhaul the system and prevent developers from selling new houses under leasehold, ensuring a fairer deal for leaseholders. It would also make it easier and cheaper for leaseholders to extend their lease agreement or buy their freehold, giving them more control of the land on which their property is built. Alex Khan, Partner and Property Solicitor at BTTJ said the problems within the current system are compounded by issues such as multiple ground rents – the charge for renting the land from the freeholder – diminishing lease terms, excessive insurance commissions and overcharging of service charges. Under the current legislation the standard lease extension term is currently 90 years. The proposed new legislation will increase this to 990 years – saving leaseholders the headache of a long, complicated and expensive process of extending leases which can cost thousands of pounds. The reforms also aim to ensure service charges and ground rents are transparent and reasonable. The Conservatives have also promised greater transparency of the system, the banning of excessive insurance commissions and an end to the requirement for a new leaseholder to have owned their property for two years before being able to extend the lease or buy the freehold, resulting in a rising premium. They have pledged to remove the ‘marriage value’ cap meaning leaseholders with less than 80 years left on the lease will no longer have to share the hypothetical profit of the property with the freeholder, meaning they could potentially benefit by thousands of pounds. Alex Khan said the government is also proposing to allow leaseholders of mixed use properties with up to 50 per cent of non-residential floor space to buy the freehold and manage the building, a move which Mr Khan said would allow residential tenants who live above a business, but have no experience in commercial property, to manage their entire building. “Often referred to as ‘fleecehold’, leasehold is a diminishing asset. It was first brought about by barons who would finance their crusades abroad by leasing their land to tenants for a peppercorn rent on the basis they knew the land would always be theirs. The system itself actually does work but in the last 20 years it has been abused, so what used to be an £8 ground rent is now £300, £500, going all the way up to £10,000 for the lifespan of a lease, and it prevents people from selling a property so the system has spiralled into an abyss.” Jonathan Selby explored a number of options which may be implemented by the government, including abolishing the marriage value or introducing a ground rent cap either at 0.1 per cent of the property value, or at £250. Other option included re-setting the ground rent to the initial ground rent set out in the lease or freeze it at the current value. He said: “Mr Gove says he will have all of this in place before the general election scheduled for later this year, but realistically I think we could still be talking about this in four or five years’ time. The legislation that may go through may be so watered down that it barely affects anyone at all.” Conversely labour says it would scrap the leasehold system altogether within if it wins the general election. Building, Design & Construction Magazine | The Choice of Industry Professionals
Birchgrove and Hybr have announced an industry-first intergenerational living scheme which will see students and key workers live alongside retirees in the same purpose-built, privately rented retirement development. Ayrton House is a new 60-apartment rental retirement community in Mill Hill, North London. When launched in October this year, 16 apartments across the third and fourth floors will be offered exclusively to trainee doctors and nurses from the local hospital, university post-graduates and graduate scheme students. The scheme has been designed to generate a vibrant community by harnessing the benefits of intergenerational living, with several pieces of research highlighting how the model is physically and mentally beneficial for both the young and the elderly. A 2019 UCL study highlighted how increased social contact for elderly people is associated with a lower risk of developing dementia, while an Ageing Research study has highlighted how intergenerational living benefits the elderly by giving them a greater sense of purpose and combatting loneliness, in turn leading to a greater life expectancy. Further research has also demonstrated how younger people benefit from living with elderly people – by enabling them to gain a deeper understanding of the older generation and increasing their tolerance, empathy and understanding. The students will live at Ayrton House on short-term tenancies running until June 2025, sharing communal facilities with the development’s retirees – including full access to the gym and the same subsidised rates in the restaurant. Furthermore, the rent on the 16 student units will be approximately 50% of the market value. The project therefore means that students will have access to affordable, high-quality accommodation at a time when nearly two-thirds of all students are struggling to pay their rent. At the end of the tenancies in June 2025, the 16 student units will be vacated and restored to first-use state, before being let to retirees. Building, Design & Construction Magazine | The Choice of Industry Professionals
