This document summarizes a presentation on promoting custom build housing in the UK. It discusses the UK government's Custom Build Homes programme which aims to double the size of the custom build sector over the next decade. The programme includes making public land available, encouraging lenders to offer custom build financing, and a £30 million investment fund to support group custom build projects. The presentation outlines various models for builders to deliver custom homes and provides an example from the Netherlands of a large-scale custom build development. It argues that custom build housing can contribute significantly to housing supply while creating local jobs and offering homeowners more choice and potential cost savings.
Tom Chance
National Community Land Trust (CLT) Network, Acting Director
Tom Chance is Acting Director of the National CLT Network. He has run the Network's programmes to support CLTs and enabling organisations since 2016, led a policy review of new sources of housing supply for an All Party Parliamentary Group, and has previously worked on housing policy and practice at the Greater London Authority and Bioregional.
Presentation from Richard Bacon MP
Richard Bacon is the MP for South Norfolk. He served on the Public Accounts Committee (PAC) for sixteen years and was the PAC’s deputy chairman from 2010 to 2017. Based on his PAC experiences, Richard wrote the book ‘Conundrum: Why Every Government Gets Things Wrong - and What We Can Do About It’ (published by Biteback Publishing) and also contributed to the book ‘How to Run a Country’ (published by the Reform think tank). He has lectured widely, including at the London School of Economics and at Saїd Business School, University of Oxford. Parliamentary colleagues have voted him the House Magazine's ‘Backbencher of the Year’ and also ‘Commons Select Committee Member of the Year’ and he has twice been named The Spectator magazine’s Parliamentarian of the Year.
He founded the All-Party Parliamentary Group on Self-Build, Custom and Community Housebuilding and Place-Making, and steered through Parliament a Private Member's Bill which became the Self-Build and Custom Housebuilding Act 2015. He is now Ambassador for the Right to Build Task Force, focusing on implementing the Right to Build legislation.
Ireland’s Social Housing Strategy:Opportunities and ChallengesFEANTSA
Presentation given by Bairbre Nic Aongusa, Department of the Environment, Community & Local Government, Ireland, at the 2015 FEANTSA Policy Conference, "Homelessness, A Local Phenomenon with a European Dimension: Key Steps to Connect Communities to Europe", Paris City Hall, 19 June 2015
Housing in Ireland: From Crisis to Crisisrobkitchin
This paper provides a macro analysis of Irish housing since 1991 and makes the argument that it has been perpetually in crisis and that we need to find a way to treat housing as a sector, not simply a market, and to create stability that will mitigate against boom/bust cycles.
Zimbabwe
Homeless People’s Federation was established in 1998 and was officially
launched by the then Minister of Local Government - the late Hon. John Nkomo.
•
The
Federation consists of a countrywide network of 323 housing savings groups that
save for housing and livelihoods with a membership of 9310.
•
To
date, the Federation has secured around 5000 plots and installed services in
75% of these plus constructing 3000 low-cost housing units.
•
The
work of the Federation focuses on mobilising urban homeless communities around
housing savings groups and then support engagement with key stakeholders such
as government around land negotiations and policy review.
Tom Chance
National Community Land Trust (CLT) Network, Acting Director
Tom Chance is Acting Director of the National CLT Network. He has run the Network's programmes to support CLTs and enabling organisations since 2016, led a policy review of new sources of housing supply for an All Party Parliamentary Group, and has previously worked on housing policy and practice at the Greater London Authority and Bioregional.
Presentation from Richard Bacon MP
Richard Bacon is the MP for South Norfolk. He served on the Public Accounts Committee (PAC) for sixteen years and was the PAC’s deputy chairman from 2010 to 2017. Based on his PAC experiences, Richard wrote the book ‘Conundrum: Why Every Government Gets Things Wrong - and What We Can Do About It’ (published by Biteback Publishing) and also contributed to the book ‘How to Run a Country’ (published by the Reform think tank). He has lectured widely, including at the London School of Economics and at Saїd Business School, University of Oxford. Parliamentary colleagues have voted him the House Magazine's ‘Backbencher of the Year’ and also ‘Commons Select Committee Member of the Year’ and he has twice been named The Spectator magazine’s Parliamentarian of the Year.
He founded the All-Party Parliamentary Group on Self-Build, Custom and Community Housebuilding and Place-Making, and steered through Parliament a Private Member's Bill which became the Self-Build and Custom Housebuilding Act 2015. He is now Ambassador for the Right to Build Task Force, focusing on implementing the Right to Build legislation.
Ireland’s Social Housing Strategy:Opportunities and ChallengesFEANTSA
Presentation given by Bairbre Nic Aongusa, Department of the Environment, Community & Local Government, Ireland, at the 2015 FEANTSA Policy Conference, "Homelessness, A Local Phenomenon with a European Dimension: Key Steps to Connect Communities to Europe", Paris City Hall, 19 June 2015
Housing in Ireland: From Crisis to Crisisrobkitchin
This paper provides a macro analysis of Irish housing since 1991 and makes the argument that it has been perpetually in crisis and that we need to find a way to treat housing as a sector, not simply a market, and to create stability that will mitigate against boom/bust cycles.
Zimbabwe
Homeless People’s Federation was established in 1998 and was officially
launched by the then Minister of Local Government - the late Hon. John Nkomo.
•
The
Federation consists of a countrywide network of 323 housing savings groups that
save for housing and livelihoods with a membership of 9310.
•
To
date, the Federation has secured around 5000 plots and installed services in
75% of these plus constructing 3000 low-cost housing units.
•
The
work of the Federation focuses on mobilising urban homeless communities around
housing savings groups and then support engagement with key stakeholders such
as government around land negotiations and policy review.
Write up is an attempt to define and decipher , policy adopted by Singapore for providing housing in the island. Policy defines the system adopted in the island with land ownership vesting with state, houses being construct by Housing Development Board and leased for 99 years to the citizens. It also brings out limitations of the system.
Public Private Partnership in Affordable HousingJIT KUMAR GUPTA
Presentation is an attempt to showcase the need and methods of promoting public sector involvement in the Housing to achieve the goal of housing for all by 2022
Presentation on the UK Community Renewal Fund and outline for a proposal to support social enterprise development in pilot localities and social enterprise sectors in Sheffield City Region
Slides used by Graham Brookfield from Homes England, during a visit to Homebaked CLT, Anfield by members of the Big Local Better Homes and Building Homes Learning Cluster
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/
The South and South West Executive Director at the HCA, Colin Molton, gave a presentation which covered where we are now as an agency and the importance of the Local Investment Planning to our future work.
Write up is an attempt to define and decipher , policy adopted by Singapore for providing housing in the island. Policy defines the system adopted in the island with land ownership vesting with state, houses being construct by Housing Development Board and leased for 99 years to the citizens. It also brings out limitations of the system.
Public Private Partnership in Affordable HousingJIT KUMAR GUPTA
Presentation is an attempt to showcase the need and methods of promoting public sector involvement in the Housing to achieve the goal of housing for all by 2022
Presentation on the UK Community Renewal Fund and outline for a proposal to support social enterprise development in pilot localities and social enterprise sectors in Sheffield City Region
Slides used by Graham Brookfield from Homes England, during a visit to Homebaked CLT, Anfield by members of the Big Local Better Homes and Building Homes Learning Cluster
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/
The South and South West Executive Director at the HCA, Colin Molton, gave a presentation which covered where we are now as an agency and the importance of the Local Investment Planning to our future work.
National Urban Housing and Habitat Policy-2007JIT KUMAR GUPTA
Presentation looks at the intent, content and scope of National Housing Policy 2007; Housing Finance Institutions, PMAY(U), in the context of housing for all in urban India
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1. Promoting more
Custom Build Housing
Presentation to the BuildStore
Development Finance & Construction Conference
Ted Stevens, Chairman (NaSBA)
in association with
Mario Wolf, Senior Policy Advisor, Housing
Supply and Markets (DCLG)
2. What we want to cover
• What is the Custom Build Homes sector?
• The Policy driver - the Government’s Custom Build
Homes programme
• Ways in which builders can deliver custom homes
• Learning from the Dutch experience
• What’s in it for developers?
3. What are ‘Custom Build’ Homes?
‘Homes built by individuals or groups of
individuals for their own use, either by building
the home on their own or working with builders’
4. The last five years – share of all housing
Source: HB&R – UK Self Build Market report. Q1 2011
5. UK custom build home numbers
compare poorly internationally
Insert HB&R graphs here
Source: NaSBA/SmartLIFE self build comparison
6. The Housing Strategy for England and
the Government’s priorities
• High level Government focus on
economic growth and social
mobility
• Strong emphasis on taking a
localist approach - putting
communities in control
“…a clear and pressing
• For housing this means need for more homes to
meet growing demand…”
improving affordability, creating
greater stability in the housing Grant Shapps MP, 2011
market and increasing quality
7. Housing supply measures
• The Housing Strategy sets out package of measures to boost the
supply of new homes
• Substantial new direct investment– focused on getting the
housing market moving again
• New Buy Guarantee scheme to help prospective buyers
• Ambitious measures to boost house building substantially, including a
£1.3bn investment to get Britain building
• Freeing up public sector land for 100,000 new homes
• Stronger support for Custom Home Building
• In the long-run, responsiveness of supply to demand driven by:
• Simplified planning framework that supports growth
• Proportionate and cost-effective regulation
8. The Custom Build Homes Programme
“…we need strategic reform of the way in
which housing is planned and funded
[including]:…
Stronger support for Custom Home Building,
including making available up to £30 million of
new funding to support provision of short-term
project finance on a repayable basis.”
9. “I want to create a self build revolution where
building your own home is not just the
preserve of the privileged few.”
Grant Shapps MP, Minister for Housing, June 2011
“Self builders deliver affordable, greener and
more innovatively-designed homes, and make
a big contribution to the number of new
homes built in this country. But there is still
significant opportunity for growth in the
sector which can only be opened up if
Government and industry work together...
… I pledge to continue pushing for further
action to make self build an easier option for
everyone.”
Grant Shapps MP, Minister for Housing, July 2011
10. Why is Government focussing on this sector?
• Important to national economy (value over £3.6bn annually)
• Important contribution to housing supply (sector builds as much as our large
house builders)
• Growth potential (demand growing) - More people want to custom build.
Ambition is to double size of sector over next decade
• Protects and creates local jobs, strengthens local construction supply chains
and promotes sector diversification
• Improves local choice and can offer better value for money (scope to make
housing more affordable for a new generation)
• Localism - Big Society - in action
11. Custom Build Homes programme
Action Plan (July 2011) to Housing Strategy announced Custom
address barriers of land, Build Homes Programme:
finance, regulation and • Councils to establish demand and
inadequate support and facilitate such housing
guidance for self builders • More public land to be made
available
Government asked to: • Promote larger scale locally-
• Make more land available for self- planned custom build home
builders
• Encourage lenders to offer more finance
developments
products for self builders • Work with industry to establish a
• Remove and simplify over-burdensome Custom Build Homes Portal
regulations holding back the sector • Appoint Custom Homes
Champion
Commits Industry to: • Make up to £30m available to
• Promote new implementation models,
such as making serviced plots available support provision of short-term
• Work with Government to identify project finance for group
suitable ‘revolving fund’ facilities to schemes on a repayable basis
support group projects
• Provide clear independent information to
would-be self builders via a new online self
build ‘portal’, to enable more people to self
build.
12. What action has Government taken…
• Moved quickly to established Industry-
Government Implementation Group to
implement Action Plan and maintain momentum
• Written to banks and building societies calling on
them to make more finance products available to
custom home builders
• Promoting use of publicly owned land for self
build housing- approximately 40% of land suitable
for development is currently sitting within public
sector land banks
• Introducing more proportionate and cost-
effective regulation
• Localism Act and planning reforms
13. …further Government action
• National Planning Policy Framework (NPPF) asks local
authorities to take account of local demand of people wanting
to build their own homes (Paragraphs 50 and 159)
• Looking at how we can promote larger scale locally-planned
custom build home developments
• Worked closely with industry to establish new Self Build Portal
and support Kevin McCloud as new Industry Champion to raise
greater public awareness of the benefits of custom home
building
• Worked closely with industry to shape a new £30m investment
fund to support provision of short-term project finance to multi-
unit ‘group’ projects on a repayable basis
14. Where next?
• Launch and implement £30m investment
fund
• Joint Industry-Government engagement
with local authorities, developers, lenders
to explain and promote the take-up and
facilitation of the self build business model
• DCLG/HCA workshop on bidding for public
land disposals and applying for funding
• Continue to work on taking forward residual
actions in Action Plan which have not yet
progressed
• Industry report back to Ministers by end
2012
15. Ways in which builders can deliver custom homes…
• Sell ‘serviced’ plots with services and access in place
• Sell plot with a design and build contract to build a client’s house design
• Sell plot and build a watertight shell with the option for the self builder to
finish-off
• Offer complete package ‘turnkey’ service – from plot to handover, including
full design, construction and finance
• Work with group of self builders to build – for example – a terrace of homes,
block of flats or multi-unit scheme
• A case study on Homeruskwartier District in Almere – a 3,000 home self
build project that’s currently underway in The Netherlands
20. Work with group of self
builders
• Developer finds site and
undertakes feasibility study of site
development potential – eg multi
unit scheme, block of apartments
or terrace of homes
21. Work with group of self
builders
• Developer finds site and
undertakes feasibility study of site
development potential – eg multi
unit scheme, block of apartments
or terrace of homes
• Developer prepares outline
scheme (no detail)
22. Work with group of self
builders
• Developer finds site and
undertakes feasibility study of site
development potential – eg multi
unit scheme, block of apartments
or terrace of homes
• Developer prepares outline
scheme (no detail)
• Community consultation showing
indicative designs. Firms up design
detail in discussion with clients
23. Work with group of self
builders
• Developer finds site and
undertakes feasibility study of site
development potential – eg multi
unit scheme, block of apartments
or terrace of homes
• Developer prepares outline
scheme (no detail)
• Community consultation showing
indicative designs. Firms up design
detail in discussion with clients
• Submits for planning
24. Work with group of self
builders
• Developer builds as required, and
custom builder is given choice to
finish-off units
25. Work with group of self
builders
• Contractor builds as required, and
custom builder is given choice to
finish-off units
BENEFITS FOR CONTRACTOR
• Pre-sold development off plan
• Cash flow benefits (plot sales and
staged payments for build)
• Minimal involvement in the
interiors/fitting out work (where
homes are self finished)
26. Work with group of self
builders
• Contractor builds as required, and
custom builder is given choice to
finish-off units
BENEFITS FOR CONTRACTOR
• Pre-sold development off plan
• Cash flow benefits (plot sales and
staged payments for build)
• Minimal involvement in the
interiors/fitting out work (where
homes are self finished)
BENEFITS FOR CUSTOM BUILDER
• Can influence design
• Reduced risk
• Firmer price certainty
• Save perhaps 20-25% if self finish
27. Homeruskwartier District, Almere, Holland
An area of 100 hectares to the SW of city centre
So far around 1,000 self build homes built; 3,000 planned
A number of different zones/themed areas
City put in infrastructure and sells plots at about £290/m2
Real mixture of homes built but average three bed homes
are costing £150,000 (including land)
42. Some lessons from Almere for UK practice
• Strong LA vision and leadership needed
• Public land critical to promote sector growth
• Master plan large sites through competitions but enforce through light touch
planning regulation (reduce consent times by using SPZs, design codes, LDOs)
• Marketing essential to promote model. Central marketing through ‘Plot Shop’ with
range of ‘approved builders’ gives one-stop-shop for self builders
• Management company needed otherwise LA plot sale process onerous
• LA can offer cheaper land/help with mortgage but still make profit- can help FTBs
• Economic climate and stagnating housing market helps support new business
models- self build seen as market opportunity
• Government needs to support but no need for top-down regulation- leave to
localities
• Culture change- builders and LAs don’t necessarily know best (let local people build
homes they want. Don’t micro manage)
• Housing Associations can play important role to promote
• Lenders need to embrace opportunities presented by market- business opportunity
• Self build not sole answer to housing crisis but plays important role
43. The size of the prize for developers?
• Self build sector set to double in size – that’s another
£3billion a year
• Most of that growth is expected to be driven by
developers ‘enabling’ a range of small to medium sized
multi-plot (‘group’) schemes
• New £30m Investment Fund that will shortly be
launched will help with land, infrastructure and
construction costs on multi-unit schemes
• Those that get in first will be ahead of the pack and will
gain the biggest share of this growing market