HFi news
19 JUL 2018

The Science of Housing

 

Today the House of Lords' Science and Technology committee publish their awaited report into Off-Site manufacturing in construction. 

The report, called Building for Change, can be found here. For all of us interested in housing and off-site manufacturing it is recommended reading.

Benefits of OSM: Their Lordships have done a thorough job of setting out the key benefits of OSM including:

  • "Better quality buildings and infrastructure;
  • Enhanced client experience and faster delivery;
  • Fewer labourers and increased productivity;
  • Creating more regional jobs away from large conurbations;
  • Improved health and safety for workers;
  • Offering building safety advantages—making it easier to ensurebuildings meet quality assurance standards;
  • Improved sustainability of buildings and infrastructure; and
  • Reduced disruption to the local community during construction."

What needs to work better: Their Lordships have done a thorough job of considering, among other things, and in our own words: 

  • the role of off-site manufacturing in meeting housing supply (answer: essential for 300,000 homes)
  • the adequacy of R&D and specific government support to meeting the specific needs of OSM (answer: more to do)
  • whether the business models for traditional procurement and construction enable or hinder the growth of OSM (answer: hinder and need business model change)
  • the readiness of OSM to deliver more (answer: yes)
  • whether technical training and apprenticeships have sufficiently modernised to take account of the digital, business organisational, project skills and other manufacturing needs of OSM (answer: not yet)

Of course, one of the most interesting aspects of this report is that is by the Science and Technology Committee, not a housing, planning, treasury or business committee. More of this to follow we expect, as advanced manufacturing and the digital technology drive different needs across education, skills & training, industry, taxation and many other areas.

Housing is no longer simply about bricks & mortar construction. Off-site manufacturing has great potential to drive the delivery of high quality, fast, customised, cost effective product. But more needs to be done, and quickly, to turn that potential into reality so that we can build the homes the country needs.

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Housing Delivery Snapshot August 2024

Housing Delivery Snapshot - August 2024 

• The Bank of England cut interest rates to 5% in a move expected to begin to boost confidence. The close 5-4 vote of the MPC came with a cautionary message that the Bank was not going to cut “too quickly or by too much”.

• Mortgage lender Nationwide released its latest UK house price index report, with an annual growth in house prices of 2.1% in July, its fastest pace since December 2022.

• The latest NHBC housing pipeline figures for Quarter 2 2024 show the scale of the current housebuilding slump with a 23% fall in new registrations compared to the same quarter in the previous year.

• Latest MHCLG data reported a significant fall in residential Planning Permissions over 30%, another key housing pipeline indicator.

• Following the General Election, the new Government confirmed its 1.5 million new homes target for this Parliament.

• The Housing Secretary took immediate action to impose compulsory housebuilding targets on councils, with a warning of direct intervention if housing targets are not met.

• The Housing Minister confirmed on BBC Radio 4’s Today programme on 31 July that the Government’s New Towns programme is not expected to deliver any completed homes this Parliament.


Housing Pipeline cause for concern

HFI Housing Delivery Newsletter - August 2024

The Bank of England’s rate cut was a ray of light, but the housing pipeline remains a cause for concern. At the Housing & Finance Institute, we look at the latest news and developments in housing since the election, including in the Housing Spotlight and Delivery Snapshot.

Rate Cut Boost

Amid a challenging year for housebuilding and mortgages, there was a ray of light on 1 August, with the Bank of England announcing a long-awaited interest rate cut to 5%. The close 5-4 vote of the Monetary Policy Committee came with a cautionary message that the Bank was not going to cut “too quickly or by too much”.

Ahead of the rate rise, the mortgage lender Nationwide released its latest UK house price index report, with an annual growth in house prices of 2.1% in July, its fastest pace since December 2022.

The latest Bank of England announcements will provide a little relief for some current mortgage holders and those needing to refinance. However, many first-time buyers are facing a continuing double challenge of finding money for a deposit while meeting stringent affordability criteria. So while generally mortgage market confidence may begin to rise off the back of the Bank of England interest rate cut, access to home ownership remains difficult for many, given the affordability and home deposit challenges.

Housing Pipeline Concern

However, housing pipeline figures remain a cause for concern with the latest NHBC housing pipeline figures showing the scale of the current housebuilding slump. Latest MHCLG data reported a significant fall in residential Planning Permissions, another key housing pipeline indicator.

Housing Policy Interventions

Following the General Election, the new Government has confirmed its 1.5 million new homes target for this Parliament. Immediate action has been taken by the Housing Secretary to impose compulsory housebuilding targets on councils, with a warning of direct intervention if housing targets are not met. However, the Government’s New Towns programmes is now not expected to deliver any completed homes this Parliament, the Housing Minister told Radio 4’s Today programme. This raises questions as to how the 1.5 million new homes target will be delivered, without these major new developments coming forward at pace.

Further Government intervention on the demand side to support new buyers and home deposit savers is likely to be necessary over the next period to reverse the current housebuilding slump, together with far-reaching interventions for skills and building materials to meet a housing target that hasn’t been met since mankind first landed on the moon over 50 years ago. The HFI’s purpose is to support increased housing supply, back councils and businesses working together to build more homes and promote new ways to finance housebuilding.

Do get in touch if you would like to share ideas and suggestions on building the homes our country needs.

Best regards

Natalie Elphicke Ross
Head of Housing Delivery

natalie@hfi.org.uk


What are the key areas to Budget Watch in relation to Housing Delivery?

Autumn Budget 2024: What are the key areas to Budget Watch in relation to Housing Delivery?

 

 

 

DOWNLOAD THE HFI'S PRE-BUDGET BRIEFING BY CLICKING HERE: 

HFI Pre Budget Briefing October 2024