Mario Wolf on Custom and Self Build Housing: the national picture. What does is mean for you?
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Presentation by Mario Wolf, from the National Custom & Self Build Association and the Right to Build Task Force on the national self-build picture. Slides from a workshop on 17 March 2018 giving an introduction to self-build for community-led housing, hosted by Brighton & Hove Community Land Trust. Watch the video from the presentation and find out more information here: https://bhclt.org.uk/introduction-to-self-build-for-community-led-housing-video/
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Mario Wolf on Custom and Self Build Housing: the national picture. What does is mean for you?
- 1. Mario Wolf, Director of the Right to Build Task Force Action Learning Programme for Community-led Housing groups in Brighton and Hove Custom and Self Build Housing: the national picture What does it mean for you?
- 2. What is Custom and Self Build housing? Self Build • People directly organise the design and construction of their homes • Very few actually do the main construction work Custom Build • Working with a specialist developer or ‘enabler’ to deliver the home • Many offer ready-to-go serviced plots • Less risk/faster Usually single homes, but both approaches can be used by groups
- 3. Benefits for Councils and Communities Communities • Widens choice/options • Can help with affordability • Greater community cohesion Councils • Can speed-up and grow supply • Improves housing diversity/quality • Supports local smaller builders/local economies • Fewer planning objections
- 4. Benefits for Builders and Landowners • Taps into wider demand (different type of housing) • Can speed-up build out (people want to build their ‘dream home’ now) • Improves site marketability (wider offer/more choice) • Shares risk if working with specialist enabling partner • Can improve viability and help with cashflow
- 5. Some numbers about Custom and Self Build housing nationally* • 13,000 - homes built in 2016 (5% year-on-year growth) • 67% - buyers would prefer not, or are unlikely, to buy volume builder homes** • 29% - Self Builders enjoy uplift in home value after completing their project • £1,200sqm - average build cost per square metre • £310,000 - average total build cost of a project • 247sqm - average floor size of Self Build home (people prefer to build bigger) • £50,000-£59,000 - average household income of current Self Builder • +80% - Smaller builders want to do more Custom/Self Build projects*** • +30 - specialist Custom Build enablers in UK market (NaCSBA information) * HB&R Self and Custom Build Market Report 2017 ** Ipsos MORI for Home Builders Federation *** Federation of Master Builders member survey
- 6. Understanding the legal and policy framework
- 7. What is “The Right to Build” New duty on Councils since April 2016 Self-build and Custom Housebuilding Act 2015: • keep and publicise a Register of people who want to self/custom build in their area; • have regard to Register when exercising planning, housing, land disposal, regeneration functions Housing and Planning Act 2016: • amends/supplements Self-build and Custom Housebuilding Act 2015 • duty on Councils to meet demand on Register by granting ‘development permissions’ for enough serviced plots to meet demand on rolling annual basis (three years to deliver) • defines what Custom and Self Build homes are and what a ‘serviced plot’ is Self-build and Custom Housebuilding Regulations 2016 Self-build and Custom Housebuilding (Time for Compliance and Fees) Regulations 2016
- 8. Have you registered on Brighton and Hove’s Self-build and Custom Housebuilding Register? housing.strategy@brighton-hove.gov.uk
- 9. National Planning Policy Framework Asks Councils to assess demand and plan to meet demand for people who want to build their own homes, through Local Plans (currently being revised- draft published 5 March ‘18)
- 10. Why is Custom and Self Build housing now so actively supported? 0% 10% 20% 30% 40% 50% 60% 70% 80% International comparison of Self-build and Custom Housebuilding
- 11. Demand is strong across the UK • 53% of adults in UK want to build their own home • 24% increase in single new home permissions in 2016 • More than a million want to buy a site and start in next 12 months • A quarter of them like the idea of working together as a group • Strong interest in plots that form part of a larger development Over 33,000 people registered on Demand Registers (Oct ‘17) – even though 80% of people don’t know about them!
- 12. The position in Brighton and Hove (October 2017) Brighton and Hove had 42 people registered for plots despite limited publicity 6 groups registered True demand is probably higher, because other information shows higher numbers PlotSearch (BuildStore) Custom Build Register (BuildStore) 464 1141
- 13. How Registers might help groups access land • Councils must grant sufficient development permissions to meet demand on their register on rolling three year cycle • Councils can use registers to allocate land, buy/sell land, give planning permission
- 14. How Registers might help groups access land • Register does not give planning permission but is a ‘material consideration’ in planning process • Registers can be used to alert people on register when land has been made available for Custom and Self Build housing
- 15. Some practical actions Groups can take 1. Register your interest 2. Speak to local authority about how they will be discharging their duty 3. Partner with councils/landowners to identify opportunities 4. Identify opportunities through neighbourhood planning process
- 16. The local policy position Housing Strategy 2015 supports local housing co-ops and community groups Commitment to: • promote Community Housing • explore viability of Community Land Trust and wider community housing development options • explore use of commercial properties for co-operatives • share information on development opportunities
- 17. The position in Brighton and Hove City Plan: commits to identifying potential housing sites in Part 2 of the City Plan Urban Fringe policy: Council will promote and support careful use and management of land within urban fringe to support house building, with particular emphasis on delivering housing to meet local needs (including opportunities for community land trusts, community-led development, Right to Build, and housing co- operatives)
- 18. Communities and groups are an important Custom and Self Build housing developer
- 19. Understanding the main delivery models
- 20. Creation of Serviced Plots
- 21. Opportunities to deliver at scale and density
- 22. Opportunities in garden towns and villages, on larger sites to diversify offer, or smaller sites on edge of urban areas, or ‘exception sites’…
- 23. Graven Hill offers choice
- 24. Custom Build enabled models
- 25. Community or Group initiated projects
- 26. ‘Affordable housing’ policy compliant models Community Land Trusts Discount market sale Shared ownership Affordable and social rent Opportunities on exception sites or as part of affordable housing mix on larger sites
- 27. Exception Sites for Affordable Housing Community Land Trust: six affordable eco homes built by local people in Devon village. Cost £140k per home (land and build)
- 28. Exception Sites for Affordable Housing Single Exception Sites policy in Shropshire
- 29. Bristol CLT projects Two projects – 12 new affordable homes on former school site, and another 36 homes on a second site
- 30. Cohousing for older people, High Barnet, London First senior cohousing community in the country- 25 flats for older women. Most owner-occupied, some social housing
- 31. K1 project (Marmalade Lane) 40 sustainable low cost homes built by a cohousing community near Cambridge K1 (Marmalade Lane) cohousing project
- 32. Orwell Housing Association ‘self finish’ project, Felixstowe Two ‘self finish’ projects – residents saved about £6k by doing tiling, decorating, landscaping and installing kitchens. Can part buy/part rent the homes for £500 a month
- 33. Community self build, Walthamstow Block of redundant garages transformed into ten affordable homes – all for rent at around £120 a week (2 bed home)
- 34. ‘Collective’ redevelopment project Hafer Road, Clapham Junction, London- 8 neighbours demolished council block, rebuilt their homes at double the size… …and ingeniously built twice as many to pay for it
- 35. Neighbourhood planning opportunities Petersfield Neighbourhood Plan Allocation for 112 Custom and Self Build homes 11 homes 101 homes
- 36. International experience (mixed approaches on larger sites)
- 37. International experience (speeding up delivery) New Delft- one third Custom and Self Build housing as part of city regeneration project of over 800 homes (consents on plots given in two weeks in accordance with design code)
- 38. Self-refurbishment opportunities Old school being converted into eleven homes – bare shells (range from 76-174 sqm) cost £48-109k
- 39. Self-refurbishment opportunities Housing Association enabled refurbishment, Klarenstraat, Amsterdam
- 41. How does the Right to Build Task Force work? SUBMIT EXPRESSION OF INTEREST INITIAL DISCUSSION WITH TASK FORCE DIRECTOR PROPOSAL PREPARED AND PROJECT BRIEF AGREED QUALIFIED TASK FORCE EXPERT APPOINTED TO MATCH NEEDS WORK UNDERTAKEN TO AGREED MILESTONES
- 42. Some of the delivery challenges we are advising on • Estimating demand • Deciding on mix and type of projects to support • Finding delivery partners/enablers • Locational considerations on larger sites • Viability considerations (which model fits best) • Scope and delivery of design codes • Managing buildout • Delivering affordable housing • Winning ‘hearts and minds’ of landowners/larger developers and communities • Identifying suitable policy solutions to fit the local context
- 43. We are here to help, please contact us at: righttobuildtoolkit.org.uk taskforce@nacsba.org.uk
Editor's Notes
- Brighton Diggers Self-Build Housing Co-operative 1990s The Diggers are a group of five families and four single people in Brighton, who chose to self build for rent as an affordable way of providing their own permanent homes Ashley Vale, Bristol The site was a former 2.1 acre scaffolding yard, near central Bristol. There was a concrete slab over most of the area with a redundant three story office block, two large warehouses and other buildings. Local people wanted to avoid a volume developer building 35 fairly identical houses, so they formed an action group to try to influence the process, and to create the opportunity for local people to build their own homes. They went on to set up a non-profit making company, limited by guarantee, (Ashley Vale Action Group – AVAG) which purchased the site. The formation of the company was key to enabling the purchase of the site to go ahead, as the land owner wanted to deal with one body and not a collection of self builders
- 33,000 registrations nationally – Fareham figures are low
- Our first major project is a community of 33 new ecologically-minded and permanently affordable homes at Church Grove in Lewisham.
- City Plan10 (PM064 under Policy SA4 Urban Fringe) emphasis on delivering housing to meet local needs through the sites identified in the 2014 Urban Fringe Assessment Study. City Plan Part One identifies potential housing sites will be undertaken to inform allocations made in Part 2 of the City Plan over the next two to three years. Consider how best to ensure that opportunities for community land trusts, community-led development, right to build, and housing co-operatives are brought forward/ safeguarded in order to maximise housing opportunities that meet local housing needs SA4 Urban Fringe Where appropriate, the council will promote and support the careful use and management of land within the urban fringe to achieve the following objectives: 3.159 Some land within the city’s urban fringe has been identified as having potential to help meet the city’s housing requirements (see Part B, Policy CP1 Housing Delivery). Sites identified through the 2014 Urban Fringe Assessment Study (or parts of sites where relevant) will be considered to have potential for housing in the Strategic Housing Land Availability Assessment exercise. Further consideration and a more detailed assessment of potential housing sites will be undertaken to inform allocations made in Part 2 of the City Plan with a particular emphasis on delivering housing to meet local needs. As part of this process, the City Council will consider how best to ensure that opportunities for community land trusts, community-led development, right to build, and housing co-operatives are brought forward/ safeguarded in order to maximise housing opportunities that meet local housing needs. This will be taken forward through the City Plan Part 2. Sites coming forward for development ahead of the preparation of Part 2 of the City Plan will need to address criteria c) to e) set out in Policy SA4 above and satisfy detailed information requirements110 at the planning application stage. CP1 The council will make provision for at least 13,200 new homes to be built over the plan period 2010 – 2030 (this equates to an annual average rate of provision of 660 dwellings). Within the urban fringe =1060 A key objective of the City Plan is to provide people with a choice of decent quality housing to meet their needs for a stable home at a cost they can afford. There is a need to plan for the future scale of new residential development required (the overall amount of new housing), for the location of new housing and for a variety or mix of new housing (in terms of housing type, size and tenure see CP19 and CP20) to ensure that new development meets a range of local housing requirements and contributes to the creation of mixed and sustainable communities. This policy will also help to deliver against the local targets under the One Planet principles, which is a strategic approach to enabling the city to live within environmental limits (see Table 1 on page 26). Started preparation of Part Two of the City Plan which will contain the remaining development sites and detailed planning policies. Scoping consultation: One of the key objectives of City Plan Part 1 is to achieve sustainable, inclusive and mixed communities (e.g. see policy SA6 Sustainable Neighbourhoods and CP19 Housing Mix). Planning for a mix of housing that reflects the needs of different groups in the community is an important part of this. Such groups will include families with children, older people, people with disabilities and support needs, smaller households and people wishing to build their own homes. Should policies and/or site allocations specify that development sites should also make provision for self-build plots and custom build housing? Is it appropriate for site allocations in City Plan Part 2 to specifically seek to address different housing needs? For example, would it be appropriate for some sites to be identified for older person’s housing or for family housing or for specialist needs housing? Or, should this be left to the market to decide? Responses were fairly evenly split on this question. Just over half (22) supported policy provision for self- build / custom builds. Some thought this would offer good opportunities for more sustainable and eco-friendly builds. The Food Partnership (134) also suggested that this help facilitate collaboration and introduce multi-functional land use / shared space that includes community food growing. Other respondents (19) were not supportive of planning policy / allocations to address selfbuild / custom build. Some saw self-build as wasteful of land and unlikely to contribute very much to targets for housing. A number of respondents offered partial support on the basis that controls would be required to safeguard quality and quantity; that schemes would need to be self-funded and meet other policy requirements. Other respondents noted that all sites would be suitable for self-build / custom build plots therefore the policy wording should be flexible so that this can be assessed on a site by site basis.
- Co-operative Housing for rent An example of this model is the successful LILAC (Low Impact Living Affordable Community) 20 home co-operative housing development in Bramley, Leeds. This project was completed in 2012 to provide permanently affordable homes in a community where “all residents feel they are part of a strong, flourishing neighbourhood where they can directly participate” through environmentally “low impact living”. LILAC was the first co-operative to use the Mutual Home Ownership (MHO) model which is a collective approach to home ownership. Its core principles are that MHO society members and residents pay a collective mortgage rather than traditional individual ones. MHO society members contribute financially on the basis of their income levels – defined in LILAC as 35% of net household income. MHO society members build equity that they can potentially take with them based on a national income-based formula rather than property values, ensuring that homes remain affordable for subsequent MHO society members. The value of equity shares allocated to each household can differ between 90% and 110% of the cost the household’s home, providing a range of affordability and enabling LILAC to reduce personal financial risk in a challenging home ownership environment. LILAC’s homes and land are owned by the MHO society which is owned by the society’s members – the residents who live in the homes provided. The MHO society is legally a co-operative which is democratically controlled by its members. Each member household has a lease which grants the right to occupy a specified house or flat owned by the MHO society. LILAC has a 25-year fixed rate mortgage provided by ethical bank Triodos at 3.5% above base rate which financed LILAC’s scheme costs (land, homes and common house development). Each member has a lease which gives them the right to democratically control the housing community they live in. Members pay an equity share to the co-operative and retain equity in the scheme. After deductions for maintenance, insurance etc, these payments pay the mortgage. As members leave, existing members can buy more equity shares, and as people’s income levels change their equity share commitments can also change. If someone leaves sooner than three years then they will not be entitled to increases in the value of their equity shares. The company keeps a set percentage of any increase in equity to secure the long-term sustainability of the project
- This project provides six detached affordable self build homes in the village of Broadhempston, Devon. The drainage, slab and basic timber shell has been constructed by contractors, with the homes being roofed, clad externally and fully fitted out by a group of local people who have all committed to work at least 20 hours a week. The land was acquired at agricultural values, and is now owned by a Community Land Trust. To secure planning permission for the development the council treated it as an ‘Exception Site’, which means the properties are classified as ‘affordable’ and if they are ever sold the value is capped at 80 per cent of the market value. The all-up cost of each home is around £140,000. This is about one third of the cost of equivalent sized homes in the village Planning permission to build on this former agricultural land at the edge of the village was only possible because the project was classified as ‘affordable housing’, so the development could be treated (in planning policy terms) as an Exception Site. All the families are locally based and on low to modest incomes so they were all classified as being in housing need. To keep costs as low as possible the families are all doing a minimum of 20 hours work a week on the project (they all work on each other’s homes, until all six are complete). Because they have had the slab and shell delivered by external contractors, the work has mainly involved roofing, cladding the walls externally and then all the internal fitting out works, electrics, plumbing etc. Once complete the residents will own 25 per cent of the equity in their house by virtue of having put in the labour (sweat equity) to build it. They will then have the option to buy another 50 per cent on a ‘rent to buy’ arrangement, gradually buying further equity in the property up to a maximum of 75 per cent. No rent will be payable on the remaining 25 per cent of the home, which is technically owned by the CLT that holds the land. If residents wish to move on, they will only be able to sell their equity to people meeting the local social housing allocation policies. The group set up the Broadhempston CLT (as a company), and it borrowed money for the land and the construction work/materials – a total of £880,000 from Resonance. The CLT therefore now owns the freehold of the land, and when the homes are complete it will also have a 25 per cent stake in the value of each property. Broadhempston CLT initially obtained pre-development funding of £45,000 from CAF Venturesome’s CLT fund. This provided the resources to submit a detailed planning application and employ the relevant professionals involved in this process for example Architect, Ecologist, Engineer etc. Once Broadhempston CLT had obtained planning it approached Resonance and applied to its Affordable Homes Rental Fund. In 2014 a loan of £880,000 was granted from Resonance, which enabled the construction of the six homes to begin. The residents make monthly payments to the CLT, which in turn then pays off the loan to Resonance. The best part is that the residents don't need to take out a mortgage as the CLT has done it for them! The families can buy up to 50 per cent of the equity in the home (their ‘sweat equity’ building the homes qualifies them for another 25 per cent; and the CLT will always own the other 25 per cent). Everyone pays the same monthly payment. A portion of this buys a little equity, and residents can only buy extra equity (in one go) after living there for two years.
- Bristol City Council has established a Community Land Trust (CLT) to help deliver affordable homes to rent/intermediate homes to buy on a shared ownership basis across the city. Its first project involves converting a redundant school into six apartments and building six new homes (for self-finish) in the former playground, and a second project – for 36 homes, including full self-build – is now in the pipeline. CLTs are not a legal entity (like a company) but they are defined in law, so there are certain things they must be and do: - A CLT must be set up to benefit a defined community It must be not-for-private-profit. This means that it can, and should, make a surplus as a community business, but the surplus must be used to benefit the community Local people living and working in the community must have the opportunity to join the CLT as membersThe members control the CLT (usually through a Board elected from the membership) CLTs are usually constituted as Community Benefit Societies or Registered Societies under the ‘Co-operatives and Community Benefit Societies Act 2014’ and have successfully delivered affordable, self-build housing all over the UK, including the St Minver CLT in Cornwall and Broadhempston CLT in Devon Allocations As the project was being publically funded the CLT needed to be able to demonstrate the housing need and eligibility of its members; to facilitate this it has developed an allocations policy for the homes. Applicants must firstly be members of the CLT. They then have different options dependent on whether they want to buy equity, or rent. If applicants intend to rent their home, they must also sign up to the city’s housing register by joining Home Choice Bristol. They are then placed in a banding determined by their level of housing need, and if applying as an individual or a couple renters are only eligible for a single bedroom unit. Those intending to buy an equity stake must register with Home Choice Bristol, and also with Southwest Homes (the zone agent for shared ownership in the south west). Purchasers are eligible for a spare bedroom on top of their direct housing needs.
- On site of the former St Martha’s Convent School was purchased for the group by the Hanover Housing Association three years ago. Hanover Housing developed site. 17 flats for sale on 250-year leases and 8 for social rent New Ground Cohousing is the first senior cohousing community in the country and the only one dedicated as women-only. New Ground’ is a high quality Custom Build mixed tenure scheme for older women, designed for and run by a group of older women. It provides 17 flats for sale on 250-year leases and 8 for affordable social rent (11 one-bed, 11 two-bed and 3 three-bed flats). It is understood to be the first dedicated senior cohousing community in the UK, based on the widely seen continental Custom Build cohousing model
- One example is the K1 (Marmalade Lane) project which is delivering 40 sustainable low-cost homes built by a cohousing community near Cambridge. The homes are designed by Mole Architects and the site developed by a Swedish company, Trivselhus, in partnership with Jonny Anstead & Neil Murphy of developers TOWN. The cohousing community will take ownership of the land once the development is complete. Members of the cohousing community will own the freehold of their homes, or a long leasehold (999 years) for flats, and through the company they will have joint ownership of the freehold of the “estate”. Freehold and leasehold agreements allow the cohousing community to protect the interests of the whole group. Two homes are designated as affordable housing, discounted by 25% of current market value secured through a Section 106 legal agreement imposed on the development. Application to purchase these flats will be through a process agreed with South Cambridgeshire District Council.
- This housing association-led project has provided a total of eight affordable self finish homes - four in Felixstowe and four in Norwich. The homes are available on a shared equity basis, and there is a six to seven per cent discount offered in return for the occupants doing the decorating, fitting the kitchen and bathroom, and the external landscaping. Demand has been strong, with most people initially buying a 50 per cent stake. This means the initial mortgage/rent works out at just over £500 per month Orwell Housing Association was keen to explore the idea of ‘self finish’ homes and identified two sites for pilot schemes. The development of four homes in Norwich was completed in the early summer of 2015; a second project – of another four homes - is due to be completed in Felixstowe around the end of 2015. Both schemes form part of larger housing developments that were constructed by a local contractor. At each location the contractor built the shell of the self-finish homes to NHBC standards, with utilities leading into the homes, and the road and parking completed. The new owners have had to finish off the homes by installing the bathrooms, kitchens, doing all the decoration and landscaping the gardens. They were given three months to complete this work, and in return they have qualified for a six to seven per cent reduction compared to the full market value.
- This project in Walthamstow provided ten homes for rent. It was coordinated by Circle Housing with Waltham Forest’s housing team and the Community Self Build Agency Cherwell District Council’s ‘Build!’ programme makes ‘shell finish’ homes available to local people on its housing register; the programme also provides opportunities for ‘self refurb’ homes when suitable properties become available. HEADWAY GARDENS, WALTHAMSTOW, LONDON A collective called the Headway Self Build Group constructed this ten-home project. The site was a block of 50 redundant garages on a large housing estate that Circle 33 owned. The housing association had previously sought planning permission for affordable housing on the site on three occasions; but each time it was rejected for reasons that included over-development, loss of off-street parking and inadequate vehicular access. One house designed for a wheelchair user was also required to comply with planning policy. A local single parent was the main initiator of the development. He was living in a two-bedroom home with two teenage daughters and a young son, and he’d been on the housing waiting list for seven years. He persuaded the housing association to consider a self build scheme, and he helped to recruit the other self builders – all of whom had been on the council’s waiting list. Circle 33 worked with the CSBA, and together they secured the finance for the project. The bulk of the money came from the Affordable Homes Programme with £300,000 from the Greater London Authority. The building costs amounted to £921,383 and the external works cost an additional £261,187. The self builders attended training courses at the local college. Recognising that they didn’t have the skills to do all the work themselves the project was undertaken as a ‘self finish’ development - so a contractor was hired to build the homes, with the self builders doing some of the final fitting out work (mainly decorating, landscaping, fitting the kitchen units and second fix carpentry). The self builders were heavily involved in the early stages too – working with the architect and the housing association to agree the preferred layout of the development. They also selected the external materials used – they opted for brick cladding rather than render or timber. A number of options for the internal layouts were developed: for example the residents could have a kitchen with a view of the street with living room opening off the back garden; or a 'parlour' living room at the front of the house with a family kitchen facing the back garden. The latter was the arrangement they favoured.
- They worked out that by adding eight flats and selling them, they could use the income to subsidise development. Adam explains: “We all sold our flats to a special purpose vehicle company, then bought them back. Every flat is bespoke, and we tried to create a commercial model that would work for all the residents.” The eight extra flats sold easily and the profit was ploughed back into the development to give everyone a bigger home. Designed by Peter Barber Architects and made from rustic yellow brick, the new building is striking but works well in the Victorian street. It is deceptively simple in form; the dwellings slot together like a three-dimensional jigsaw puzzle. There are 16 flats and maisonettes in all, each with its own private outdoor terrace or courtyard. Inside, the spaces are generous and conform to the Mayor of London’s housing design guide. Corridors and landings are almost like rooms in themselves. The whole community joined in choosing the architect, inviting Peter Barber to interview because one of them happened to walk past his office in King’s Cross. Billi says: “He got the massing right and knew how not to make it feel like a block of flats.” Local planners were supportive and, with 30 objections and 26 letters of support, the proposal was approved without a hitch. The original Hafer Road block was built in the Fifties and consisted of eight flats with a total floor space of 6,000 square feet. The new building has 16 homes and covers 16,350sq ft of living space. Residents bought the freehold from Wandsworth council in 2011 for £38,000. The block was valued the following year at £3 million. Cost of development, covering planning, finance and build: £6 million.