New working models for developers and councils

Latest News Tue, Oct 23, 2018 7:49 AM

In the last two decades the number of council houses in Britain has halved according to government statistics released in November 2017, which show total stock in Britain of two million homes.

Earlier this month the government increased its affordable homes programme from £7.1 billion to £9.1 billion, which it claims will create spending of £5 billion on housebuilding from councils and housing associations.

In Glenigan’s ranking of the construction industry’s top 100 clients, 22 entries are local authorities but residential work is having little impact.

Leeds City Council is the highest ranked local authority after awarding £272 million-worth of construction work in the 12 months to Q3 2018.

Nearly three quarters of this spending is for the £120 million Leeds Public Transport Investment Programme and the £80 million East Leeds Orbital Road. The biggest housing project identified by Glenigan’s construction market research is for 27 houses.

Dundee City Council features amongst the top 100 clients, but due to a £100 million energy from waste plant, while the West Midlands Combined Authority’s appearance is down to the Midlands Metro project.

Unlike the provinces, social housing work in London is booming. In the three months to August 2018, housing starts in London surged 145% as work began on 5,774 units according to the National House-Building Council.

NHBC Chief Executive Steve Wood put this down to “increased activity by housing associations and the continued flow of inward investment on for-sale and private rental developments.”

However, councils in the capital are also pressing on with work. There are 10 London boroughs in Glenigan’s ranking of the top 100 clients.

The London Borough of Barking & Dagenham has let £185.9 million-worth of construction work in the last year, while Hackney’s construction programme is worth £177.4 million. Both feature council house projects.

Barking & Dagenham council is building a £39.8 million apartment scheme in Wood Lane, while Glenigan’s construction market research identifies more than 300 units starting in Hackney’s housing programme.

Countryside’s design and build contracting division is working on Barking & Dagenham’s Wood Lane development (Glenigan Project ID 15335982) and Hackney’s £80 million Clapton Common scheme, which features 132 flats (Glenigan Project ID 16237786).

In the capital, an emerging trend is seeing big commercial housebuilders to form joint ventures with councils to develop unused land. This gives housebuilders access to land and local authorities a share of profits.

Housebuilders are increasingly willing to accept this arrangement as these agreements unlock large sites, where their JV partner is also the local planning authority.

Affordable housing completions have leapt 66% to 1,073 units in the last year at Countryside, which has 29,878 social housing plots under its control. This land is not all in the capital but most of the group’s exposure is in London, the Home Counties and the North West and other housebuilders are increasingly changing their working models to access land.

Meanwhile, a recent guide by the NHBC Foundation shows the number of 55-74 year olds living in rural areas increased by 30% between 2001 and 2015 – a percentage increase almost matched by the over-75s age group.

Along with the population growth in the over-55s age group, the average age of people living in rural England has also gone up. Between 2002 and 2016 the average age rose by almost four years to 47.8. This is very different to the marginal increase in age seen in urban populations, which went up by just four months to 37.4 years old.

While the rate of growth of the over-55s is significant in rural areas, the NHBC Foundation report found that only 17% of homes across England are located here. In contrast, suburban areas – not quite urban and not quite rural – accommodate almost two-thirds of the population, with just over 20% of the population living in city centres and other high density urbanised areas.

Steve Wood, NHBC Chief Executive said: “The figures show an increasing proportion of 20-54 year olds settling in urban areas and more over-55s are choosing to live in the country. It’s imperative that the industry considers these changes when deciding which types of houses should be built, and where, to meet the shifting needs.”

The facts about UK households come from the NHBC Foundation publication, ‘40 facts: homes, housing and house building today’. Steve Wood added: “We have gathered together some interesting facts about UK housing and house building to give you a picture of the homes we live in today. As our population changes so does the need for a broader range of products and tenures.”

Featured News

Specification news
BIM comes of age in construction as most professionals...

NBS (powered by Hubexo), the platform for connected construction information, has...

Read More >>

Specification news
Completion of new buildings marks a major milestone for...

Sheffield Hallam University has completed three new state-of-the-art, net...

Read More >>

BUILDING PRODUCT LIBRARY - LATEST BROCHURES

ACO Blue Roof Guide – Vol 2 Brochure

ACO Blue Roof Guide...
By ACO Building Drainag...

Download Now >>

Stannah Commercial Brochure Brochure

Stannah Commercial B...
By Stannah Group

Download Now >>

Stannah Midilift CLS Brochure

Stannah Midilift CLS
By Stannah Group

Download Now >>

BUILDING PRODUCT DIRECTORY - LATEST PRODUCTS

SignetFire
SignetFire

Why SignetFire?Are you looking for replacement fire doorsets for your latest project?We’re...

Read More >>

Roofing Collections
Roofing Collections

Our carefully curated range of handmade roofing tiles and slates is specifically designed to...

Read More >>

Special Brick Collections
Special Brick Collections

Special-shaped bricks are specifically designed to feature a variety of shapes and dimensions that...

Read More >>

CONSTRUCTION VIDEOS - LATEST VIDEOS

Reclaimed Brick Company Leah's Yard Square Sheffield
Reclaimed Brick Company Leah's Yard Square Sheffield

Reclaimed Brick Company is part of Leah's Yard Square in Sheffield, a historic site revitalised for...

Watch Now >>

Day in the life of a Reclamation Yard
Day in the life of a Reclamation Yard

A typical day at a reclamation yard is filled with activity and discovery. Early mornings often...

Watch Now >>

Reclaimed Brick Display at Reclamation Yard
Reclaimed Brick Display at Reclamation Yard

Reclaimed Brick Display at Reclamation Yard

Watch Now >>