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Mario Wolf, Director of the Right to Build Task Force
The diversification of our housing market is central to building more homes
“We need to build between 225,000 to 275,000 or more homes per year to keep up with population growth and start to tackle years of under-supply”
“…we will diversify the housing market, opening it up to smaller builders and those who embrace innovative and efficient methods”.
“Alongside smaller firms the Government wants to support the growth of custom build homes”.
What are Custom and Self Build homes?
Self Build• People directly organise the
design and construction of their homes
• Very few actually do the main construction work
Custom Build• Working with a specialist
developer or ‘enabler’ to deliver the home
• Many offer ready-to-go serviced plots
• Less risk/faster
Usually single homes, but both approaches can be used by groups of people working together
Is there demand?
• 53% of adults in UK want to build their own home
• 24% increase in single new home permissions in 2016
• Over a million want to buy a site and start in next 12 months
• A quarter of them like the idea of working together as a group
• Strong interest in plots that form part of a larger development
Over 33,000 people registered on local registers (Oct ‘17) –even though 80% of people don’t know about them!
Is there demand?
Some numbers about Custom and Self Build housing nationally*
• 13,000 - homes built in 2016 (5% year-on-year growth)
• 67% - buyers would prefer not, or are unlikely, to buy volume builder homes**
• 29% - self builders enjoy uplift in home value after completing their project
• £1,200sqm - average build cost per square metre
• +80% - smaller builders want to do more Custom/Self Build projects***
• +30 - specialist Custom Build enablers in UK market (NaCSBA information)
* HB&R Self and Custom Build Market Report 2017 ** Ipsos MORI for Home Builders Federation*** Federation of Master Builders member survey
People who want to build find it hard to find land
Our housing market offers little choice and we have lost more than half our small builders
?
A small number of volume builders build most of our homes at a pace and quality to suit their business needs
Other countries build a lot more Custom and Self Build homes
0%
10%
20%
30%
40%
50%
60%
70%
80%
International comparison of Self-build and Custom Housebuilding
Introducing “The Right to Build”
What is “The Right to Build”?
• New legal duty on Councils since April 2016
• Self-build and Custom Housebuilding Act 2015:• keep and publicise a Register of people who want to self/custom build; • have regard to Register when exercising planning, housing, land disposal,
regeneration functions
• Housing and Planning Act 2016:• duty on Councils to meet demand on Register by granting ‘development permissions’
for enough serviced plots to meet demand on rolling annual basis
Duty supported by the National Planning Policy Framework
Councils should assess demand and plan to meet demand for people who want to build their own homes
(draft revised Framework strengthens this further)
Serviced Building Plots provide more opportunities
Opportunities to deliver at scale and density
Custom Build enabled models
Increasing demand for collective (group) projects
‘Collective’ redevelopment projects
Hafer Road, Clapham Junction, London- 8 neighbours demolished council block, rebuilt their homes at double the size…
…and ingeniously built twice as many to pay for it
New delivery models emerging all the time
Older Womens Cohousing development (OWCH) in Barnet- 25 flats (owner-occupied + some social housing for rent)
The opportunities in the UK are growing
Quinn Estates, Hammill Park, Kent19 serviced plots for ‘enabled self build’, with outline planning- strong local demand
Potton, French Fields, Cheshire18 plots for 3-6 bed homes
Squirrel Wood, Basingstoke122 Custom Build homes. Buyers reserve plot, get help to secure mortgage, choose house type, room layouts and other available features and then get home built
Opportunities in garden towns and villages, on larger sites to diversify offer, or smaller sites on edge of urban areas, or ‘exception sites’…
Can deliver ‘Affordable housing’Community Land Trusts
Discount market sale
Shared ownership
Affordable and social rent
Opportunities on exception sites or as part of affordable housing mix
on larger sites
International experience(mixed approaches on larger sites drive diversity and accelerate build out)
International experience(dividing larger sites to give opportunities to more builders)
New Delft- one third Custom and Self Build housing as part of city regeneration project of over 800 homes (consents on plots given in two weeks in accordance with design code)
International experience (supporting different ways of building)
International experience
Tiny House opportunities at Almere9,000 visitors to Council Expo over two weekends. Affordable innovative housing with plots rented from the Council
Self-refurbishment opportunities
Local authority enabled refurbishment, Kepplerstraat, Amsterdam- Old school converted into eleven homes – bare shells (range from 76 to 174 sq m) cost £48-109k
Self-refurbishment opportunities
Housing Association enabled refurbishment, Klarenstraat, Amsterdam
Significant neighbourhood planning opportunities
Petersfield Neighbourhood Plan Allocation for 112 Custom and Self Build homes
11 homes
101 homes
Progress so far• Interest high- steady stream of enquiries (150+ enquiries so far)- almost 20
organisations supported to date
• Main interest from garden village promoters, councils with ambitious delivery plans and private landowners, enablers
• Support already given to range of high profile projects
• Range of further commissions now being finalised, including from land promoters and some community groups
• Presence at conferences and events nationally and pushing messages through media
• Right to Build Toolkit being enhanced
Examples of supported projects
Aylesbury Woodlands (part of Garden Town)
Buckinghamshire AdvantageAt least 165 plots on 1,100 home scheme (15%)
Final quantum, mix, location still being considered
Examples of supported projects
North Northamptonshire
Advice on opportunities to secure Custom and Self Build housing at Tresham Garden Village and elsewhere, including the 6 sustainable urban extensions of 20,000 homes
Tresham Garden Village masterplan consultation includes target of 20% Custom and Self Build homes of up to 1,500 homes
Examples of other supported organisations
• Potton - advice on Custom Build affordable housing delivery models
• Cornwall, South Cambridgeshire/Cambridge, Warrington - workshops
• Basingstoke and Deane Council - advice on policy
• Fareham Borough Council - delivery strategy in development
• Teignbridge District Council - broader support package
• Landowners - promoting Custom and Self Build opportunities on several sites
• Community groups - planning, finding land, accessing finance, action learning
Custom and Self Build housing offers significant oppotunitiesto diversity our housing market