Tag: building

Should we build houses on Greenfield Sites?

Categories Construction and Building, , , ,

Field withTreeThe Planning Minister, Nick Boles has caused strong reactions amongst environmental campaigners and groups with his radical plans to increase the number of houses across the UK, particularly on Greenfield sites.

New reforms to planning permission laws are due to come into effect today. In particular the rules have been relaxed to allow home owners to build some extensions without the need for full planning permission.

The caveat is that the adjoining neighbours must not object to the development. Plans will still need to be submitted to the council to ensure the dimensions are within the permitted development allowances and details of neighbours must be given.

The council will then notify the neighbours and if no objection is received within 21 days, the development will be permitted.

In addition councils have been instructed to consider new build projects on Greenfield land with a more favourable eye, especially self build projects. The idea being that new and beautiful homes will be developed rather than as Mr Boles describes them, “soulless identikit rabbit hutches”. Not only are environmental campaigners concerned about the protection of the countryside and Greenfield sites, but also whether these new builds will become ‘monsters’ of design on the landscape.

However Mr Boles does not stop there, he also is trying to ease street planning legislation to convert shops back to residential use and allowing more agricultural barns to be converted to homes. Although it is plain to see that the high street today is gradually declining, allowing a free for all with regard to converting shops back to homes does not build the case for local communities to thrive again.

Conservationists are worried that with a relaxation on Greenfield sites that villages and towns will simply sprawl out into our beautiful countryside.

I can understand Nick Boles is trying to look for different solutions to our housing deficit but are his ideas the only way. I don’t think so; there are still plenty of areas within towns and cities which are ripe for redevelopment. The UK still has a plethora of Brownfield sites yet to be taken advantage of.

In my view it is important to redevelop areas which have already been built upon than churning up fields to establish lots of little pockets of houses.

2013 Budget Round Up

Categories Construction and Building, ,

New Build HousingSo the 2013 budget came and went. As usual reactions to the Chancellor’s fiscal measures have been both positive and negative. The construction industry, although on the surface, seems to have gained a boost, will it really pan out that way?

Let’s look at the two main areas:

  • infrastructure
  • housebuilding

Infrastructure

In the 2013 budget, George Osbourne reiterated his commitment to the £40billion guarantee scheme for the UK’s infrastructure. Although this scheme was announced in July 2012 only 2 projects thus far have benefited from it.

The Chancellor remained pretty vague when it came to how and where this money would be used over the coming year while the construction industry waited with bated breath to hear that specific projects and work had been identified for this money. It didn’t come.

In addition a further £3billion was allocated for roads and power stations but again a considerable lack of detail was presented.

Although this money is a welcome input to the industry, confidence remains low as to when and how this money will be spent or if it ever will!

Housebuilding

So, we now have £3.5billion to help first time buyers get on the property ladder. The housing industry is still struggling in terms of new build numbers and in terms of sales by the consumer. The Chancellors answer is to offer a loan of up to 20% of the cost of the property and in addition a mortgage-backed guarantee of up to 20% of the Loan to Value of the property. The only proviso being that the buyer has to have at least a 5% deposit. The limit of the property purchase price is capped at £600,000.

So why is this good? Well it is hoped this will stimulate the new build market, not only in sales but also to help generate new housing projects. The doubters are worried this may create reckless loaning or a false ‘bubble’ which will burst when the funding runs out.

However if these measures pan out, it will certainly help the buyer but will it really help the industry? Unlikely. I believe that the investment and stimulation needs to come further up the food chain, more towards the source, in order to get our housebuilders back on site.

At the moment the number of new build homes being built is around 90,000 a year. Predictions indicate a need for 230,000 a year. This is a huge deficit in numbers and one which I am not sure will be cured with a small and possibly very temporary pot of money for first time buyers.

I guess we will just have to wait and see…

Lobbyists push affordable housing for 2013 budget

Categories Construction and Building, , ,

Affordable Housing MarketWith only just over a week to go before the 2013 budget, lobbyists are still pressuring the government over their plans to support affordable housing in the UK over the coming year.

Both the CBI and British Chambers of Commerce (BCC) have been pushing for a clear commitment to build between 50-100,000 new homes over the next 3 years. Clearly new affordable homes do not come without significant cos,  so where is the money going to come from?

The CBI says their estimates of £1.25 billion for 50,000 affordable homes could be found from current spending, from savings within government departments and further sales of land and property plus additional funds from the wider economy.

The BCC estimates the spend needed would be £30 billion to ensure 100,000 new homes over the next 3 years but without growth in the affordable housing sector over the next six months, it may be necessary to borrow more to build these homes.

With the budget announcement due on March 20th it is unlikely these final pressures will affect any changes to the plan already decided by Mr Osbourne.

With the financial future of the UK still looking very vulnerable, the government has a very difficult job. The UK needs money in order to stimulate growth but on the flip side, this only serves to increase the already huge deficit we are facing.

Finding the balance between incentive and savings is an unenviable task for Mr Osbourne and one which is unlikely to suit everyone.

Many MP’s are unhappy that much of the public spending funds are already ring fenced which leaves little opportunity to successfully support other areas of the public sector which need more help.

New housing is essential to keep property at an affordable level but also to help employment in the construction sector.

It will certainly be interesting to hear whether the housing industry in particular, will reap some rewards from this year’s budget or continue to expect tough times ahead.

 

Recession? Blame it on the Construction Industry

Categories Construction and Building, ,

Roof Trusses on HouseThe end of January saw another negative report about the UK construction industry contracting for another month. Although the UK construction industry accounts for less than 7% of Gross Domestic Product, it is consistently blamed for keeping the UK in recession. This may or may not be the case as within every industry there are areas which gain and lose during tough economic times. However I wonder what the real reasons for lack of progress really boils down to. My own opinion hails back to the financial sector.

There were reports that demand was weak and a lack of new project accounted for much of the poor performance. However if we look further down the food chain, in my view it can only be as a result of the financial crisis. Many of the projects promised by government have been scrapped to cut the deficit and  many private housing projects have been abandoned due to lack of finance from banks. All of this harps back to the original sin which the banking sector initiated and which clearly is still ongoing, with fines and punishments being handed out across the globe.

How can the construction sector bolster its output with such ongoing uncertainty and lack of project commitment and funding? Well it can’t but yet it bears the brunt of responsibility for keeping the UK in recession. This financial crisis and economic situation is going to last a very long time; I think we all have to face this fact. As such everyone within the building industry has to look beyond the old means and ways of gaining new business and look towards diversifying and perhaps look at brand new methods and means to keep afloat.

However for me the blame lies firmly with the financial crisis we find ourselves in, reckless trading and funding over many years has now brought us to a decade or two of tough times. This flows through every sector, not just the construction industry and this in my view is what will keep the UK dipping in and out of recession for the foreseeable future. Is it really fair that the construction industry has to bear the brunt of the blame for our ongoing recession!?