In the second quarter of 2012 there were just 21,540 new home building starts in England. According to the Royal Institute of Chartered Surveyors (RICS), Britain is now building the lowest number of houses in nearly a century.

Patrick Collinson, money editor of the Guardian, believes that what we are seeing is ‘catastrophic market failure’. Collinson explains: ‘The population of England and Wales is rising rapidly, up by 3.7 million in the past decade alone according to the latest census figures, the biggest rise since national records began in 1801.’

In London, we know that demand for properties is especially high. We often state that London is like a different country compared to the rest of England, and this is supported by rising house prices in the capital at a time when house prices continue to fall outside of London.

A lack of finance availability is often cited as the reason why would-be-buyers canÂ’t buy their first home. However a lack of new housing and a growing population does not go well together, instead increasing demand and pushing up prices in popular areas like London.

As Collinson explains, in the 1930s a house building boom led Britain out of depression. ‘We’ve shown with the Olympics that we can build magnificent facilities on time. Can we now do that with housing?

As the coalition government reach their halfway mark in Downing Street, a cabinet reshuffle is expected shortly. Although Grant Shapps has firmly established himself in the Housing Minister role, there are rumours circulating about whether he will remain in the post, as house building targets have not been met.

Image source: Roberto Verzo

In the last year the number of homes built in London has decreased by almost two-thirds. This is according to the National House-Building Council (NHBC) who keep track of home starts, who say that there were only 9,123 starts last year.

According to the NHBC, new home registration figures for the public sector ‘during the rolling quarter February to April 2012’ were down 49% compared with the same time last year.

Demand for property continues to be extremely strong and there are frequent calls to the government to encourage house building in the capital. From the NHBC data it is clear that more homes need to be created in both the private and public sectors to meet demand.

Tim Gray of Paramount says that there is a large demand for homes of all sizes in North London, explaining that ‘London has always been a popular place to buy, but due to a large number of foreign investors putting their money in bricks and mortar in the capital over the past year, competition for properties is fierce’.

Data from the NHBC shows that although overall figures to build new homes in the UK were down 15%, registrations to build new homes in the private sector were up 5% compared to the same period last year.

Richard Tamayo, NHBC Commercial Director summarises the findings: ‘Despite seeing modest, but sustainable and widespread growth in private housing, the large drop-off in social housing registrations mean that overall volumes have fallen compared with the same period last year’.

Confidence is returning to the construction sector and many new build properties are likely to become available in the next couple of years.
 
This is according to Brian Berry, chief executive at the Federation of Master Builders (FMB) who feels that while many new projects will get off the ground, the return to building will not be a national phenomenon.

“There are some signs that in the new-build housing sector confidence is growing. There was a rise in residential planning approvals in the first quarter of this year suggesting that there may be some growth in new-build housing,” he said.

"Our own survey suggested that the proportion anticipating an increase in overall workloads in the coming months did rise at the beginning of this year compared to the end of last year, so there is more confidence among our members.”

There are a number of reasons to feel optimistic about the house building industry over the next year.

That's according to Steve Turner, head of communications at the Home Builders Federation (HBF).

He believes that government incentives, in particular, will help to boost the market and bring about a wealth of new build properties.

"NewBuy is certainly positive. If that can deliver the tens of thousands of sales over the next couple of years that we hope it will, then clearly that is going to have an impact," he said.

"With the planning system established, we have got some certainty and now we have got to just see how local authorities interpret it. While it is still a challenging environment, what we see is very cautious optimism."

However, he added that he would like to see more done to improve the availability of mortgages, particularly for first time buyers.

New Build Development News

Plans for a number of houses which are designed to reduce energy bills by up to 90 per cent have been unveiled in west London.

Called “greenhauses”, the properties are built to highly efficient German design standards and could be ideal for first-time buyers looking to keep costs down after taking their maiden step onto the property ladder.

The 30 houses and apartments at Brook Green are built using a construction type known as Passivhaus.

This system eradicates the need for traditional heating systems because the home’s walls are airtight and insulated to an exceptional standard.
“The homes require hardly any heating at all. Even in mid-winter residents will be able to heat a large living room with the equivalent of just 10 tea lights,” Grahame Hindes of developer Octavia Living told HomesandProperty.co.uk

It is believed that the average cost of heating one of the properties will be less than £80 per year.

The properties are available to be purchased outright or on a shared ownership basis and prices range between £295,000 and £750,000.

Building & Construction News

Disused commercial properties across the UK could be renovated and offered to start up business under new Government plans.

Sites in 18 cities, including Birmingham, Oxford, Bristol, Leeds and London have been earmarked for redevelopment and the government is now inviting start ups and existing small business to come forward and manage the properties.

Business and Enterprise Minister Mark Prisk said: "Many entrepreneurs struggle to find a suitably flexible and affordable space to start their business, so this is a practical measure which the Government is taking to support the next generation of businesses.

“Opening up areas that are not being used will give entrepreneurs access to the space they need to start and grow."

Minister for the Cabinet Office Francis Maude added that getting a grip on property and using space more effectively could save theGovernment more than £100 million a year.

The process is due to start on June 29th.

London commercial Property News

Buying a plot of land and arranging for a home to be constructed yourself is often a good way of keeping cost down and ensuring that you get a property which is tailored to your individual tastes.

But self build properties can become a nightmare if you do not take into consideration the impact your build will have on other residences in the area.

An issue can come up if someone decides that your development is restricting their ‘right to light’.

Right to light is something is protected in England and Wales under common law and the Prescription Act 1832.

It means that if a building blocks the amount of light coming through a window or the light outside drops below an acceptable level, the person who owns that property can take legal action unless they have previously waived their right.

Commonly, this right will be argued over between neighbours when one of them wishes to put a new garden wall or shed but new housing and commercial developments can also be triggers for action.

If the developer hasn’t taken a person’s right to light into consideration, a court may rule that compensation is paid, the development be changed or both. Not what you need when you are taking on what is probably the biggest project of your life.

The Royal Institute of Chartered Surveyors says that both people taking on a building project and those that feel that they have a legitimate right to light grievance should talk to a surveyor specialising in such issues before deciding on a plan of action.

If the project is still at the planning stage, a chartered surveyor will be able to calculate the impact it will have on light in the area and make suggestions on how the development can be altered accordingly.

Building & Construction News

Online resource Rightmove says that the number of enquiries on its specialist FirstBuy page has hit the one million mark.

The page was set up following the launch of the FirstBuy scheme last year and has proven to be a major success among first time buyers looking for information on which kind of properties are available using the incentive.

FirstBuy works by giving first time buyers the chance to purchase a new home on a shared ownership basis with the government and the developer providing an equity loan worth 20 per cent of the property value.

First time buyers are then required to provide a five per cent deposit of their own, with the remaining 75 per cent raised on a mortgage.

Rightmove director Miles Shipside told MyIntroducer: “Hitting one million page views within a year of launching the FirstBuy homepage really underlines the pent-up demand among first-time buyers to own the roof over their heads.

“It also shows what a leg-up initiatives like FirstBuy can provide in enabling first-time buyers to get onto the housing ladder, and how Rightmove acts as a focal point for home-hunter research and enquiries about those schemes.”

Building companies should look to brownfield developments when they are planning to construct new houses, says one sustainable housing expert.

Dr Mark Cowley, a principal partner at Listers Geotechnical Consultants, believes that builders need to think more about environmental issues when drawing up their plans and this should involve utilising abandoned or underused industrial land rather than sites in green belt areas.

He said: "I consider one of the most important factors in making building projects more environmentally sustainable is to construct new developments on brownfield sites wherever possible.

“These are sites that have previously been developed and for whatever reason could now be built on again.”

He added that where possible building firms should also look to recycle and reuse materials from the brownfield site as part of the new development, this can include using old concrete floor slabs as aggregate and reusing already dug foundations.

House prices will remain high because not enough new properties are being built, it has been claimed.

The National Housing Building Council (NHBC) believes the nation’s growing population and a lack of mortgage availability is causing a housing shortage, which might be good for people who are equity rich, but is crippling the hopes of first-time buyers.

Richard Tamayo, commercial director of the NHBC, said that the problem could helped by more new homes being constructed but revealed that 45 per cent less are being built now than in 2008.

"Even four years ago, we were not building enough homes to meet the needs of the growing UK population,” he stated.

“The dream and inspiration of home ownership amongst the younger population is moving further and further out of their reach.”

The government recently claimed that its £420 million Get Britain Building scheme will see around 16,000 new properties come onto the market and create somewhere in the region of 30,000 new jobs.

House builder Taylor Wimpey has announced plans to build more homes in London in 2012 than ever before.

The housing market in the UK capital has bucked the trend of falling prices and the builder hopes to take advantage of this.

Ingrid Skinner, Taylor Wimpey Central London’s managing director, said that the company hopes to extend its reach to some of the more 'up and coming' boroughs which are undergoing redevelopment.

“We have a diverse pipeline of fantastic projects that will enable us to extend the group’s operational aims and to bring more homes to the market than ever before in key areas of Central London in 2012 and beyond," she added.

Projects currently in the planning or construction phases include West Hampstead, Tufnell Park, Islington, Newham and Lewisham, while developments in Greenwich, Kensington and Camden are in the pipeline.

It is thought that the initial phase of development alone will deliver more than 400 new homes.

Recently, housing minister Grant Shapps estimated that the government's £420 million Get Britain Building Fund will lead to the development of around 16,000 new properties.
 

Housing minister Grant Shapps has estimated that the government's £420 million Get Britain Building Fund will create as many as 16,000 new properties on sites which have previously stalled due to economic circumstances.

Furthermore, he believes it will also see the creation of around 30,000 new jobs.

The scheme enables developers to either apply for a loan at commercial rates or they can take an equity release, whereby the government makes an investment alongside the building company.

Mr Shapps was keen to stress the scheme is not merely a government gimmick to create the illusion that they are doing something to help the plight of both first-time buyers and the building trade.

"This is not a simple handout - the taxpayer will get a return on their investment, with the homes the country needs built and 30,000 jobs created," he said.

Plans for the scheme were originally set out by the prime minister David Cameron in mid-November.

The number of new properties currently in the planning stage is less than half the amount needed to meet demand.

According to the Home Builders Federation (HBF), planning permissions are ten per cent lower than last year and arenot doing the housing market any favours.

Just 32,900 home planning approvals were granted in the three months running up to the end of September this year. Over the first three quarters of 2011, 100,446 homes were approved.

Stewart Baseley, executive chairman of the HBF, said that the numbers demonstrate a clear need for the government to deliver a new and reliable planning system which will provide the land needed to meet the current need for new properties.

He added: "Continuing to under-deliver housing is storing up huge social and economic problems for the years ahead and it must be addressed."

In November, the government launched its new build indemnity scheme, which it hopes will help young people get a foot on the property ladder.
 

The Olympic Delivery Authority in London has officially launched its Learning Legacy, an initiative geared towards ensuring the lessons learned about health and safety in construction while preparing for the 2012 Games are carried forward in the years ahead.

Over the coming months, the official Olympics organisers will be continuously updating its Legacy programme, taking on board feedback from those working in construction, as well as in procurement, planning and project management.

It is hoped that this will then become a "comprehensive online libraries" for UK businesses to refer to, including construction firms focusing on greenfield developments.

Announcing the news, ODA chairman John Armitt noted that this will be possible due to the remarkable success of the Olympics preparations.

"The scale and speed of the coordinated UK effort to build the venues and infrastructure is unprecedented and the knowledge and lessons gained during construction will both benefit the industry and act as a catalyst for inward investment," he said.

Already the Institute of Civil Engineers (ICE) has welcomed the news, noting the Legacy will help members of its profession overcome the challenges of managing waste and enhancing logistical efficiency.

London Property Market News
 

Owners of property in need of restoration might agree that making changes to their home's energy efficiency levels would be hard.

Gordon Miller, sustainability and communications director of Sustain Worldwide, believes this is the challenge that retrofitting faces.

"The complexity of understanding how to make one's home energy efficient; uncertainty about the efficiency of the materials and technologies and who you can trust to install them for you; the cost of, say, solid wall insulation is a deterrent to uptake; and general apathy - many people simply aren't interested in saving money through energy efficiency and reducing their home's carbon impact," he explained.

In order to encourage more people to make green improvements to their properties, their "trigger point" will have to be found.

This could be showing them the financial benefits of energy efficiency, reduction of CO2 emissions and saving the planet, "or wanting to leave a better world for their children", Mr Miller added.

His comments come after research from the Department for Communities and Local Government revealed average energy efficiency ratings have increased from 80.2 to 81.7 for homes in England between the fourth quarter of 2009 and the same three-month period last year.

Building & Construction News
 

The number of new build properties backed by the private sector continues to boost growth in the construction sector, while spending cuts still take their toll on public sector building.

This is the finding from the latest Royal Institution of Chartered Surveyors (RICS) Construction Market Survey, which revealed that construction of public sector housing declined in the three months to June this year.

Some 17 per cent more RICS members reported a fall rather than a rise in the level of public housing construction, while 24 per cent more noticed a decline in the number of schools and hospitals being built.

Chief economist Simon Rubinsohn noted that the research shows the government's austerity package is affecting the construction sector.

"Public sector related construction projects are being reined in while some tentative signs of recovery are visible in the private sector," he pointed out.

"It is particularly encouraging that development in the private commercial sphere is continuing to pick-up in the face of the challenging economic backdrop."

Building & Construction News
 

Nearly one in three people (30 per cent) in the UK would consider constructing their own self build properties, according to research from Norwich & Peterborough Building Society.

A survey from the mutual found 12 per cent would embark on a self build project within the next year if they could secure UK mortgage offers.

For one in four (26 per cent), the prospect of spending less money on building a new home rather than moving to an established one was the main draw, while 42 per cent liked the idea of a property that was designed to suit their specific needs.

Richard Barker, mortgage manager at the building society, commented: "Self build is a market with huge potential which could have many benefits for those willing to carry out a self build project, not to mention the benefits for the general economy and some of the problems surrounding the housing market in this country."

Figures from the National Self-Build Association show 15,000 people construct their own home each year in the UK.

Building & Construction News
 

The number of new build properties under development may still be constrained by the planning permission system, according to the Home Builders Federation.

Steve Turner, head of communications at the organisation, pointed out that the UK needs a "decent, functioning" planning system that delivers in the right places with permission.

"There are some positive signs; the announcement on public land was promising and the announcement on FirstBuy was very positive, but there are still some major constraints on the longer-term recovery that we need to see," he noted.

However, opponents have criticised the government plans for the shake-up of the planning system, with the Campaign to Protect Rural England arguing that the changes could pose a threat to areas of outstanding natural beauty.

Meanwhile, Glenigan reported that the underlying value of UK construction project starts was a quarter (24 per cent) lower for the three months to June compared with the same period last year.

Building & Construction News
 

Individuals who are interested in self build properties might still face certain hurdles to get their projects, quite literally, off the ground.

Jaclyn Thorburn, communications manager at BuildStore, noted that people might still struggle to comply with building regulations and money.

"Any self-build project will be challenging, but certainly the most common hurdles are related to finding a suitable plot, negotiating the planning system, and managing your finances," she pointed out.

However, a new government-industry working group aims to streamline the process of building new properties, so self-builders could find the situation easier to access.

"Certainly the release of more land will help, as will revisions to the planning system, to make the process much quicker and easier for self-builders," Ms Thorburn added.

The Government-Industry Self-Build Working Group was established earlier this year to advise ministers on the most effective ways to cut red tape and encourage aspiring self-builders to get constructing.

Building & Construction News