Increased costs and environmental issues continue to make building new homes hard work
The Government aims to build three million new homes in the UK by 2020. This target of 240,000 new homes per year is around 30,000 higher than current construction rates. CB Richard Ellis has identified a number of key barriers to delivery including:
• Lengthy, complex, and potentially onerous planning system
• Increasing build costs due to the costs of ‘Going Green’
- Brownfield site assembly and development costs
- The “infrastructure deficit “
- Planning aspirations being at odds with consumer preferences
Mark Budden, Senior Director for Development comments:
“Delivering more and better homes is a clear Government priority. The Queen’s speech reiterated Gordon Brown’s pledge to build three million new homes within the next 13 years which is significantly higher than current construction rates and certainly higher than the Regions and local authorities seem prepared to plan for. The Government’s plans constitute not just a step change, but suggest that a major shift in many of the development industry’s current practices will be required.
“Government requires all new homes to be zero carbon by 2016. This presents a major challenge to all contributors to housing delivery - in both the public and private sector.”
CBRE’s research suggests this is a daunting challenge requiring a public/private partnership on research and innovation and a realistic approach to housing delivery.
Mark Budden adds:
“Since the cessation of Local Councils building their own housing stock, the Government has looked to the private sector and its access to risk capital to deliver the housing the population requires. There are numerous examples in the Southern region where housing delivery has been significantly delayed or frustrated at the planning and design stage when a more realistic approach to, what should be a key priority of any government; i.e. the delivery of an adequate supply and range of housing to meet the needs of the population; would have resulted in the delivery of new homes for occupation by local people.”
CBRE’s South Central Regional office is actively involved in numerous important and high profile regeneration schemes in Southampton, Alton, Eastleigh and Woking which will deliver hundreds of homes for the benefit of the region in the next 12-24 months and beyond.”