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Self Build and
New Housebuilding Completions UK 2007-2013
In
2010, housing completions in the UK were 12% down on the previous
year at just over 134,000 – 28,000 of which were through Registered
Social Landlords (RSL’s) and although completions were down in each
quarter of 2010 compared to the previous year, in both the private
and public sectors, housing starts showed some growth as the year
progressed ending the year 22% up at 131,000, with 2011 forecast to
experience marginal growth. The self build sector, in common with
speculative housing, has declined in the UK over the last 5 years
to a level of 12,000 housing units although given the recent
initiatives by the government, and the increasingly high underlying
demand for housing, our forecast is for modest growth over the next
five years.
Self build
in the constituent countries of the UK varies considerably for a number
of reasons. Primarily, this is due to the fact that the number of
suitable plots available in England, given the much higher number of
households compared to the other 3 countries, is much lower in relative
terms.
As a
result, fundamental to the growth of self build housing going forward in
the UK - and particularly in England - will be the availability of
suitable plots in desirable areas. However, in areas where self build is
a way of life and embedded in the culture of the country it is not just
land availability which is a key factor. Many of the restrictions which
hinder the growth of self build in the UK will need to be addressed if
the sector is to prosper in the medium term. Issues surrounding planning
permission and building regulations will need to be simplified and a
greater knowledge bank provided to the inexperienced self builder given
that the housebuilders normally have specialists to deal with planning
permission, building regulations and supply matters.
Self build
tends to be a key market for more innovative products and is often a more
considered specification process. In addition to smart home systems -
such as wireless devices for appliances and lights, automated curtains
and blinds, security systems, smart meters etc, - it is apparent that
renewable technologies and standards of insulation are higher in the self
build sector.
Many of
these technologies such as solar panels and heat pumps are cheaper to
install in the early phase of the construction process, particularly
where groundworks need to be carried out. The majority of self builders
want the ability to specify the use of renewable materials such as
reclaimed timber, bricks, tiles etc, which makes self-build attractive to
the more environmentally-conscious homeowners.
Distribution in the self build market is a mix of timber frame and
traditional methods, with kits continuing to represent a significant
share of the timber frame sector. Kits offer significant advantages, not
only in terms of environmental performance, but also they are supplied
prefabricated with a range of component / fittings options to the buyer’s
specification.
In the
short-medium term, the self build market will not expand significantly
without Government intervention in the planning system. There is
considerable latent demand and the sector is generally higher
specification, more innovative and creative in design. However, until the
paradox of volume developers typically operating with landbanks of around
4-5 years build demand while self builders can’t find suitable plots is
addressed, we are unlikely to see any significant growth in self build
output. |
