Opportunities in UK Housing

UK HOUSING BUSINESS DEVELOPMENT STUDY

WWW.APPLIED-ARCHITECTURE.COM

UK HOUSING •  TREND: UK DEMOGRAPHY

•  TREND: HOUSING SUPPLY & DEMAND

•  TREND: DETORIATING QUALITY

•  TREND: EMPTY OFFICE SPACE

•  POLICY RESPONSE

•  MARKET RESPONSE

•  OBSERVATIONS AND OPPORTUNITIES


TREND: UK DEMOGRAPHY


TREND: HOUSING SUPPLY & DEMAND


TREND: DETORIATING QUALITY


HISTORY REPEATING? HOOVERVILLE IN CENTRAL PARK, 1920S RECESSION

LONDON FUTURES EXHIBITION, MUSEUM OF LONDON

TREND: EMPTY OFFICE SPACE


POLICY RESPONSE


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Communities and Local Government PublicationsTel: 0300 123 1124Fax: 0300 123 1125Email: [email protected] via the Communities and Local Governmentwebsite: www.communities.gov.uk

November 2011

ISBN: 978-1-4098-3234-8

Ref: 408284 11/11

Laying the Foundations:A H

ousing Strategy for England

Department for Communities and Local"GovernmentEland HouseBressenden PlaceLondon SW1E 5DUTelephone: 0303 444 0000Website: www.communities.gov.uk

Laying the Foundations: A Housing Strategyfor England

MARKET RESPONSE


IKEA INSTANT HOUSING

BUSINESS MODEL BUILT UPON: •  EXISTING ECONOMY OF SCALE •  EXISTING LOGISTICS NETWORK •  EXISTING SUPPLIER NETWORK

•  ORIGIN IN FURNITURE DEVELOPMENT HAS LEAD SYNTHETIC PANELING TO DEFINE OVERALL ESTHETICS

•  PREOCCUPANCY WITH TIMBER HAS LEAD TO AMERICAN ‘BALLOON FRAME’ TYPOLOGY

PROS: •  CHEAP, FAST HOUSING •  RENEWABLE MATERIALS CONTRAS: •  LIMITED ESTHETIC DIVERSITY •  LIMITED DURABILITY •  LIMITED FLEXIBILITY •  DISPOSABLE ARCHITECTURE •  LACK OF BUILDING MASS MAY LEAD TO

LESS COMFORT & INCREASED DEMAND IN HEATING, AIRCO, ENERGY

HOTEL ROOMS MODELED ON 16FT STANDARD SHIPPING CONTAINER TO ALLOW PREFABRICATION PROS: •  CHEAP HOTEL ROOMS •  FAST ASSEMBLY CONTRAS: •  LIMITED ESTHETIC DIVERSITY •  LIMITED DURABILITY •  LIMITED FLEXIBILITY •  DISPOSABLE ARCHITECTURE

OBSERVATIONS •  UK POPULATION WILL RISE AND MAY BE LARGEST IN EUROPE IN 2043 •  HOUSING SUPPLY IS CURRENTLY INSUFFICIENT •  LACK OF MORTAGE APPROVALS LEADS TO INCREASED TENANCY •  DETORIATION OF QUALITY OF HOUSING ALREADY IN PROGRESS •  MARKET RESPONSE SO FAR: LOW-COST, LOW-QUALITY - DEMAND FOR FAST

AND CHEAP HAS LEAD TO MCDONALD STYLE HOUSING PROTOTYPES THAT DEPEND ON EFFICIENT LOGISTICS AND ECONOMIES OF SCALE

•  NEW OFFICE SPACE NOT A GROWTH MARKET

OPPORTUNITIES

•  LOW COST, HIGH QUALITY, LARGE-SCALE HOUSING (PROTOTYPING) •  URGENT DEMAND FOR LOW-COST TENANT HOUSING •  OFFICE SPACE RETROFIT TO EXTEND LIFE OF EXISTING ASSETS •  URBAN RENEWAL / REGENERATION / RETROFIT STRATEGIES •  CHEAP, SIMPLE, SCALABLE, ADAPTABLE, FLEXIBLE


THANK YOU


Real Estate

Opportunities in UK Housing