ONE of the main factors preventing the UK from delivering large-scale housing effectively is that housebuilders are not fully equipped to fulfil the role of ‘master developer’ due to lack of up-front funding, according to the managing director of one of the country’s leading project management consultancies.  Jonathon Bentley, who heads up Bentley Project Management, believes that most housebuilders aren’t inclined to invest in the infrastructure required to build out major urban extensions due to the high level of risk and the lack of immediate return-on-investment.  Bentley – whose company is currently working on schemes to deliver infrastructure for more than 35,000 new homes – says that this creates a huge obstacle that needs to be navigated and is a much bigger challenge than simply the much-maligned planning system.  “What we are seeing is that typically, housebuilders are looking towards small-scale schemes that can deliver a good return on investment fairly quickly,” said Bentley. “However, when it comes to the kind of major schemes that we as a country need to hit housebuilding targets, the related infrastructure – and the upfront funding that is required – strangles the speed of development.  “To make any land ready for housing, there is a significant amount of infrastructure work required before it is primed for development. At the moment, this is simply not being made accessible, meaning that existing master developers or local authorities are having to cover these extensive costs upfront.  “What this leads to is a problem balancing development cashflow that ensures a scheme can progress to the next phase, as large amounts of capital are exhausted before the first brick is laid. For housebuilders that typically rely on a business model that limits risk, this kind of upfront investment is very off-putting.  “For small scale developments, the process for obtaining planning consent needs simplifying. But for projects at the larger end of the scale, it is a false perception that this is the only stumbling block.  “There are significant numbers of these urban extension projects that have been given planning consent, but the combination of limited funding, a lack of appetite for developing out the infrastructure needed to support them and the timescales involved in doing so, is standing in the way of progress.”  Bentley was recently involved in a visit by Michael Gove MP, secretary of state for levelling up, housing and communities, to a new sustainable urban extension at New Lubbesthorpe, Leicestershire – a scheme his team has been involved in for more than a decade.  He added: “Following our discussion, it was clear that Mr Gove really understood the difference between what a master developer does in the way of servicing the land ready for houses to be built on, in contrast to the more traditional role of a housebuilder.  “There now needs to be a concerted effort from those in government to investigate how large scale, sustainable urban housing developments can be rolled out across the country. More funding needs to be made available to get major urban extensions ‘shovel-ready’. If this can be done, we will see more housebuilders in a position where they can purchase fully serviced parcels of land and therefore build more, much-needed housing.”  Building, Design & Construction Magazine | The Choice of Industry Professionals 

The NHBC Foundation’s latest report, Building Foundation Solutions – FutureProofing Against Climate Change, is available to download now. This new report focuses on the increasingly important issue of foundation design and its application in making new homes more resilient to the effects of extreme weather events caused by climate change. This report has been produced to support developers facing comprehensive changes in foundation planning in light of climate consideration. As well as highlighting potential risk factors associated with climate change, it explores how these can impact foundations and how engineers can work to mitigate these risks. The report also recognises government policies aimed at promoting an increase in tree/canopy cover within new developments and the implications of this for foundation design. Importantly it examines the carbon footprint of foundation systems too and how these can be assessed and consequently reduced.  “House builders understand, now more than ever, the importance of climate change in design and development”, commented Richard Smith, Head of Standards, Research & Technical Competency at NHBC Foundation. “This really does start from the very beginning of a project, from the foundations up. Building Foundation Solutions – Future Proofing Against Climate Change gives its readers a clear overview of this important subject and equips house builders with the knowledge to confidently navigate foundation design in a climate-conscious age.” This wide ranging report also looks at both the known and anticipated impacts of climate change on foundation systems and the implications for their design and construction in the future. To help illustrate the issues and solutions covered, case studies are included throughout. The range of low carbon foundation solutions currently available are considered along with the interactions between low carbon design, construction solutions and climate change resilience. The Building Foundation Solutions report was prepared in partnership with RSK, one of the UK’s leading geosciences consultancies and a leader in the delivery of sustainable solutions. The report demonstrates how the impact of climate change is expected to lead to an increase in damages experienced by domestic properties. It also considers the following key questions with responses informed by the findings of literature research and industry consultation: RSK Director of Engineering and Environmental Consultancy, Peter Witherington, said: “The report recommends that, since it will take some time for further research to justify changes to the NHBC Standards and Building Regulations, developers should consider increasing minimum foundation depths now to increase climate resilience rather than waiting for changes in standards to take place. This clearly needs to be balanced against net zero considerations and the need to reduce embodied carbon associated with construction. The report, therefore, provides guidance on alternative low carbon foundation options which could adopted.” It also provides an overview of what is currently known, including relevant legislation and policy drivers for change, the main risks to building structures and their foundations from climate effects and how to mitigate them. Building Foundation Solutions – Future Proofing Against Climate Change is available to download here. Building, Design & Construction Magazine | The Choice of Industry Professionals 

England’s already stretched social housing stock is predicted to lose a further 57,000 homes through the Right to Buy (RTB) scheme by the end of the decade as councils struggle to replace sold properties, new analysis published by the Local Government Association reveals. A new report by Savills, commissioned by the LGA, Association of Retained Council Housing (ARCH) and National Federation of ALMOs, estimates that 100,000 homes are likely to be sold through the RTB scheme by 2030, with just 43,000 replaced as significant discounts leave councils without funding to replace the much-needed homes on a like-for-like basis. The analysis warns that there will be no region of the country or local authority with the capability to provide one for one replacements of homes sold under RTB over this period. The size of the discounts available were increased in April 2012, and as a result the average discount has increased by 150 per cent to nearly £68,000 in 2021/22. At the same time, this has led to a quadrupling in the number of RTB Sales. With RTB discounts set to increase by a further 10.1 per cent from April this year, in line with September’s rate of inflation, the LGA says it will become even harder for councils to deliver replacements. The LGA is urging the Government to use the Spring Budget to allow councils to set discounts locally and retain 100 per cent of sales receipts to avoid such a loss of desperately-needed social housing stock. Councils also need to be able to combine RTB receipts with government grant funding, such as the Affordable Homes Programme, and transfer funding from sales to ALMOs or housing companies to give them greater flexibility over how new council housing is delivered. Cllr David Renard, housing spokesperson for the LGA, said: “Councils want to urgently help people on council housing waiting lists and stuck in temporary accommodation. “It is becoming impossible for councils to replace homes as quickly as they’re being sold as they are being left with nowhere near enough money to provide replacements. Rising RTB discounts mean that one household’s home ownership is increasingly being prioritised over another’s access to secure, safe, social housing. “RTB can enable families to get on the housing ladder and own their own home, but every home sold that isn’t replaced risks pushing more families into the private rented sector, driving up housing benefit spending and rents, along with exacerbating our homelessness crisis. “Our new analysis shows RTB will quickly become a thing of the past in England if councils continue to be prevented from replacing sold homes. Councils urgently need the funding and powers to replace any homes sold under RTB quickly and reinvest in building more of the genuine affordable homes our communities desperately need.” Building, Design & Construction Magazine | The Choice of Industry Professionals 

Exclusive new homes data released yesterday by the National House Building Council (NHBC) reveals 2022 saw the highest number of new home registrations since 2007 (191,801 in 2022 vs. 198,467 in 2007).  Within that, the final quarter of the year saw a 21% drop in new home registrations compared to the previous quarter (35,041 in Q4 vs. 44,542 in Q3) as the impact of September’s mini budget and wider economic challenges took hold.  In Q4, 10 out of 12 UK regions experienced a decline in new home registrations with volumes down significantly compared to the previous quarter. London was worst affected with a 63% decline, followed by the North East at -47% and Wales, the North West and Merseyside joint third at -33%.  Steve Wood, CEO at NHBC, said the data reflects the fluctuating economic climate.  “Whilst the final quarter of 2022 was undoubtedly a challenging one, it was off the back of strong market performance in the first half of the year.  “Rising interest rates and the cost-of-living crisis have had a marked impact on many areas of the UK economy. House building has not been immune from these factors but the demand for high quality new homes, whether in the private or rental sector, is still holding up. It is too early to judge how long any slowdown is likely to last, house building continues to show resilience. The sector has shown time and time again that it can weather market fluctuations and respond to rising demand.” He added, “we are seeing some early indications that enquiries for new build homes are easing up, which is perhaps a sign that people need to get on with their lives.”  The data released by the UK’s leading independent provider of warranty and insurance for new homes is widely recognised as a lead indicator of house building activity.  In Q4, private sector registrations were most affected with a decline of 28% (23,203 homes in Q4 2022 vs 32,293 in Q3 2022). New home registrations in the rental sector were less affected, down by only 3% (11,838 homes registered in Q4 2022 vs 12,249 in Q3 2022), as Housing Associations report increased demand for affordable homes amidst the cost-of-living crisis and the Build to Rent sector is still seeing significant levels of investment. David Campbell, Commercial Director at NHBC, commented that the rental sector had been holding up well.  “House building in the rental sector has remained steady in the last two quarters, with investors and developers pivoting towards the increasing demand for high-quality rental homes. The diversity of the house-building market and greater focus on Build to Rent is proving to be an important factor in housing supply,” he said.  Mr Campbell reflected that while the first quarter of 2023 is likely to be a challenging time for the house-building market, there is some cause for cautious optimism.  “Builders and developers have historically held up well in tough economic circumstances, in part bolstered by the imbalance between demand and supply of new homes. As one might expect, many are considering the viability of launching new projects to the market very carefully, particularly in light of the latest Bank of England base rate rise, but there are signs that this will be temporary as enquiry and reservation levels begin to rise.” he said.   For more information on the latest figures, please click the image link to the data booklet below.  Building, Design & Construction Magazine | The Choice of Industry Professionals