House Building in the UK
March 7, 2016
Construction Specialists offering Rebuild, Self Build, Redesign, Extensions, Conversions & Interior Design, Essex
House building targets set a decade ago by the government of the time, have been pretty unsuccessful for one reason or another, but there are signs that this may change for the better. The original target specified in 2007 was for 240,000 homes to be built every year in the UK. This failed significantly, and the current government has now scrapped this house building target, and decisions will now fall to more local sources.
The Barker Review of Housing Supply announced ten years ago, that 250,000 houses would need to be built in the UK every year in order to ensure there were enough affordable homes. The nearest to this figure we managed was in 2006 when 219,000 homes were built, and an all time low was seen in 2012 when only 135,000 new houses appeared.
Obstacles for UK housebuilders include the planning system, which once went at a snail’s pace but has now progressed to a tortoise’s speed! Thousands of new build projects are still stuck in the system between outline planning and detailed permission.
Available land shortage
In order to build you have to have the land to do it on, and there has definitely been a deficiency in this area. Where there is usable land there is usually a substantially high cost too. These facts have prompted calls for councils to make more effort to identify and earmark available land in order to better meet the nation’s housing needs.
Supply and demand
There are objections to the way large house building companies frequently bide their time when developing sites, in order to create a supply and demand scenario. Matthew Pointon of research specialists Capital Economics, points out that this is how these companies maximise their assets. Experts recommend that local authorities encourage development of smaller sites when drawing up local plans, which can be completed faster.
Shortage of skills and labour
The precarious state of the construction industry has arisen due partly to fluctuations caused by financial issues within the economy. As a result, there is a shortage of skilled workers and also materials, and the industry has been slow to recuperate.
More small builders needed
The value of the smaller construction business has been acknowledged by all sides and efforts are being made to support these companies. Smaller builders will benefit from reduced mandatory contributions and funding has also been created for this section of the building community.
Multi Building Services Ltd are experts where property construction is concerned and offer a wide range of services including self build and new builds, renovations, redesigns and project management. In addition, we can liaise with local councils on our customer’s behalf regarding planning permission and other formal considerations.