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Could a quarter of a million homes be built above rail lines?

Is it possible to develop around a quarter of a million new homes in London by building apartments above rail lines? The answer is yes, according to a new report published today.

The report, entitled ‘Out of Thin Air’, says there is the potential to provide all the new homes London needs if existing engineering techniques were used to construct apartment blocks directly above rail, Overground and Underground lines.

Research from the report identified all rail tracks in Transport for London’s (TfL) fare zones 1-6 where there were no breaks in the track made by tunnels, roads or bridges and where there was ten metres of available land on both sides. This would allow for the development of 100m² apartments in buildings rising to 12 storeys. If a conservative 10% of this total was delivered it would provide 250,969 new homes.

The London boroughs of Brent, Ealing and Croydon and TfL Zones 2, 3 and 4 provided the most ‘overbuild’ development potential.

Rail lines with development potential:

Available rail lines for development

Number of hectares available by borough:

Available land by borough

Bill Price, WSP director, said “We have to be more creative in using existing space in what remains a relatively low-rise city. The air rights above rail tracks present an unrealised but significant opportunity to build more new homes on brownfield land. It’s important to emphasise the engineering is absolutely possible and not new. We have been working on projects of this nature in New York for decades. Right now in London we are working on a variety of projects that rise above rail lines including a 50-storey residential tower, homes above a new Crossrail station and even a Premier League stadium.”

“There is a wider point about how we can better connect communities and unlock new homes not just above rail lines but adjacent to them as well. In some parts of London rail lines act as accidental segregators. By ‘decking’ over these lines, such as the proposed regeneration west of Earls Court underground station, we can join together sites to unlock an even higher number of new homes and create new vibrant communities.”

The thinking behind the report emerged after Network Rail appointed WSP in 2012 to study the feasibility of building above rail lines. The study’s conclusions, which focused on the type of decking and noise and vibration issues are detailed in the new report. CGI designs are also provided of what rail overbuild might look like if implemented near a major rail terminal in Central London, above a rail line in West London, and above a station in North London.

Out of Thin Air follows a previous WSP report, ‘Building Our Way Out of a Crisis’, which argued that up to 630,000 new homes in London could be found by building apartments above public buildings such as hospitals and schools.

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£2.5 million cash boost for garden towns

A £2.5 million cash boost to speed up the delivery of over 155,000 new homes across England, has been announced by the Communities Secretary Sajid Javid this month.

Nine locally-led garden town developments, from Bicester to Taunton, will each receive new funding to fast track the build out of these large housing projects.

The new funding will support local authorities and communities in delivering ambitious proposals, speeding up the progress of developments through additional dedicated resources and expertise.

Garden towns being supported by government are committed to delivering high quality, well-planed and well-designed new communities that will stand out as exemplars of good development in years to come.

The funding will support the development of 9 new locally-led garden towns at Bicester, Didcot, Basingstoke, Otterpool Park in Kent, Aylesbury, Taunton, Harlow-Gilston, North Northamptonshire and North Essex.

Communities Secretary Sajid Javid said “Locally-led garden towns have enormous potential to deliver the homes that communities need. This new funding will help support the construction of more than 155,000 homes in 9 places across the country.

“New communities not only deliver homes, but also bring new jobs and facilities and a big boost to local economies.”

The government’s Housing White Paper sets out bold new plans to ensure the housing market works for everyone, so that more people can have the security of a decent place to live.

Across England, government is supporting the locally-led development of 10 garden towns and cities, as well as 14 garden villages – with the combined potential to deliver 220,000 new homes across England.

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Theresa’s £2bn announcement – in figures

To the critical acclaim of the construction industry, the government confirmed plans for a new generation of council and housing association homes yesterday. Funding for affordable homes will be increased by a further £2 billion to more than £9 billion. But how exactly will this money be used to boost housing? Buildingspecifier investigates:

The numbers of homes will be determined on type and location of housing, and bids received for funding. With a typical £80,000 subsidy, this £2 billion investment can supply around 25,000 more homes at rents affordable for local people.

Ministers also confirmed plans to create a stable financial environment by setting a long term rent deal for councils and housing associations in England from 2020.

The funding will further support councils and housing associations in areas of acute affordability pressure, and where working families are struggling with the costs of rent and some are at risk of homelessness.

This complements recent announcements on supporting tenants in the private rented sector and on extending Help to Buy.

The government’s Affordable Homes Programme will increase from £7.1 billion of public funding to £9.1 billion, and the £2 billion additional funding for affordable housing could lever in total investment by housing associations and councils of up to £5 billion.

Since April 2010, around 333,000 affordable homes have been delivered, including 240,000 for rent. More than twice as much council housing has been built since 2010 than in the previous 13 years.

As set out in the Housing White Paper, to help encourage more investment in social housing, government will create a stable financial environment by setting a long term rent deal for councils and housing associations in England.

Under the proposal set out this week, increases to social housing rents will be limited to the Consumer Price Index (CPI) plus 1% for 5 years from 2020. This will give social tenants, councils and housing associations the security and certainty they need.

Previously, the government’s affordable housing policy primarily supported ‘affordable rent’ – rents of up to 80% of local market level – and low-cost home ownership. This announcement now extends support for ‘social rent’ – which are lower rents, set according to national guidelines.

These latest measures reinforce this government’s approach to back housing of all tenures – with more social housing; extra security for those in the private rented sector; and helping people get onto the housing ladder.

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Theresa May speech – the view from construction

At an eventful Conservative Conference today PM Theresa May has announced an extra £2bn will be allocated to aid delivery of affordable housing in areas “where need is greatest.” She also confirmed an energy cap in a bid to alleviate fuel poverty. Buildingspecifier reports:

Affordable housing

At an eventful Conservative Conference today PM Theresa May has announced an extra £2bn will be allocated to aid delivery of affordable housing in areas “where need is greatest.”

“We simply haven’t built enough homes,” admitted May said, although she reassures that “help is on the way.”

“It won’t be quick or easy – but as Prime Minister’s I’m going to make this my mission.”

The Prime Minister highlighted that there will now be “almost £9bn” available for affordable housing which both councils and housing associations can bid for.

“We will invest an additional £2bn in affordable housing, taking the government’s affordable housing budget to £9bn. We will encourage councils as well as housing associations and provide certainty over future rent levels.

“In those parts of the country where need is greatest we will allow social rented housing to be built, at well below market levels, getting the government back into the business of building houses.”

Energy cap

The Prime Minister also revealed that caps on energy prices would be imposed under planned legislation. She gave a stark warning to energy firms that they faced a price cap on their “rip-off” bills under her new plans.

Draft legislation for the measure will be published next week, Mrs May revealed, as she accused firms of punishing loyal customers.

May commented “While we are in favour of free markets we will always take action to fix them when they are broken. We will always take on monopolies and vested interests when they are holding people back. One of the greatest examples in Britain today is the broken energy market. The energy market punishes loyalty with higher prices and the most loyal customers are often those with lower incomes, the elderly, people with lower qualifications and people who rent their homes.”

Industry reaction

Chief Executive of the National Housing Federation, David Orr said “In the aftermath of the tragic fire at Grenfell Tower, the prime minister said that we as a nation have not paid enough attention to social housing. Today, she is right to make a bold break with the past and commit to building the homes we need most – genuinely affordable homes for those on the lowest incomes.

“The additional £2bn will make a real difference to those let down by a broken housing market. Building homes for social rent will make work pay and help bring down the housing benefit bill in the long run by moving people out of costly private lets.”

Brian Berry, Chief Executive of the FMB, said “Despite the Prime Minister’s precarious political position since the General Election, Theresa May has today managed to take a braver and bolder stance on house building than any Prime Minister of recent years. The private sector will continue to expand the number of new homes it builds, particularly so if the Government succeeds in its aim of removing barriers that hold back small scale house builders. However, in the house building heyday of the 1950/60s, a healthy private sector was always complemented by significant levels of social house building. Indeed, we have only ever built at the level we need to keep pace with demand when both the private and public house building sectors have been firing on all fronts. In the 1960s, for example, we were building around 400,000 homes per year and half of those were social housing.”

“The Prime Minister’s plan is also an opportunity to help shape a stronger local house building industry. If councils can start to engage with smaller, local builders to deliver this new generation of council housing, it could further help to diversify the industry. This would also boost the capacity of the private sector through the provision of more public sector work. Indeed, the increased use of small and medium-sized building firms will limit the problem of land banking, as this is something small builders simply don’t do.

“There do remain however, some significant roadblocks to the Prime Minister’s vision. Following Brexit, the serious shortage of skilled labour the construction industry is already dealing with will be exacerbated if it becomes much more difficult for EU tradespeople, who have come to play a crucial part in plugging the industry’s chronic skills gap, to move to and work in the UK. Although the industry must seek to overcome this crisis by recruiting and training many more young people than we currently do, the Government must also be mindful and realistic about the continuing need there will be for skilled EU workers as it puts in place its post-Brexit immigration policy. Otherwise it will risk jeopardising the delivery of the bold new house building ambitions the Prime Minister outline today.”

Andy Sommerville, Director of Search Acumen, commented “Our country needs to embark on the greatest housing boom the UK has witnessed in a century. For decades, UK governments have neglected the critical issue of our nation’s housing shortfall and as a result we estimate by 2022 the UK will be short of a million homes.

“Theresa May’s pledge to invest an extra £2bn in affordable housing is the first building block to making up for years of under supply and we can only hope that this is not simply another empty promise to fix our broken housing market. Now that our leaders share the industry’s sense of urgency, we must act to build more homes and we must act quickly. The gulf between supply and demand is widening each day. For the property and construction industry, this is the cue for Britain to start building.”

Chartered Institute of Housing chief executive Terrie Alafat CBE said “We have been calling on the government to invest more in genuinely affordable homes for rent so the Prime Minister’s announcement of an extra £2 billion for affordable housing is very welcome.

“As we have been saying for some time, social rents, which are significantly cheaper than market rents, are the only truly affordable option for many people on lower incomes, so the recognition that we need more of these homes is a vital step forward.

“It’s also encouraging to hear that Theresa May agrees councils have a central role to play in building the homes we need at prices people can afford.

“The details of exactly how these new homes will be funded and just how many will be for the lowest social rents will be crucial. The number of homes for social rent funded by the government collapsed from 36,000 to just over 1,000 between 2010/11 and 2016/17. Reversing this trend will be a significant task – how much of this new funding will be dedicated to building these kinds of homes?

“There is much to welcome in these announcements and they are certainly an important step in the right direction, but we still need to do more if we are to finally build the number of truly affordable homes we need.”

 

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Rumours circulate that Theresa May will build substantial number of council houses

The Conservative Conference 2017 and rumours are rife across the industry this morning that Theresa May will unveil plans for a major council housebuilding programme. If correct, this is a very exciting time for house builders and anybody with a professional interest in the housing sector.

Both The Sun and the BBC have made this a headline story, adding more weight to the argument.

If sources are to be believed, it would be the first time in decades that a prime minister has announced a major council housing boom. Could this be the beginning of the end of the housing crisis?

Buildingspecifier will be reporting. Don’t miss out!

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Mayor’s focus on small construction sites can help solve London’s housing crisis

The London Housing Strategy’s strong focus on bringing forward more small sites will help solve the housing crisis by opening up the market to SME house builders, according to the Federation of Master Builders (FMB).

Commenting on the draft London Housing Strategy, Barry Mortimer, Director of FMB London, said “If we’re to build the number of new homes Londoners need, we must urgently make much better use of the many existing small sites that are dotted all over London. In doing so, we will the strengthen the capacity of SME house builders to build more new homes and perhaps even attract some new SME firms into the market. FMB research has consistently shown that a lack of available and viable land is the main factor stunting the ability of small builders to deliver more homes. Indeed, over half of SME house builders believe that the number of small site opportunities is, if anything, decreasing.

“We therefore welcome strongly the Strategy’s proposal for a presumption in favour of appropriate residential development on small sites, which goes further than proposed changes to national policy as laid out in the Government’s Housing White Paper. The ‘Small Sites, Small Builders’ programme will also link up public land owners with small builders, which could make accessing public land easier for small firms. We also welcome moves which will mean that less of the Community Infrastructure Levy is payable upfront on small sites. This will really help with cash flow for smaller builders and make the economics of small scale development slightly easier.

“The London Housing Strategy therefore marks a step forward in empowering smaller house builders in London. In order to reach the 50,000 new homes London needs to build each year, this renewed emphasis on small sites is vital. However, all such progress could be undermined if the Mayor fails to protect small sites from onerous levels of developer contributions. National planning guidance states that planning obligations should not be sought from developments of ten units or fewer, but implementation of this policy in London is patchy at best. Unless the Mayor, and London Boroughs, recognise the need to minimise burdens on the very smallest developments, SME builders will continue to struggle to enter the market.”

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Housebuilding soars to highest levels in almost a decade

The number of new build homes that have started to be built has surged to the highest level since 2008, as shown by government figures.

The latest housebuilding data shows that 164,960 new homes were started in the year to June 2017, up 13% on the previous year, and have increased by more than three-quarters since the low in 2009.

More than 153,000 new homes have been completed during the same period, showing an increase of 11% compared with the year before.

Housing and Planning Minister Alok Sharma said “Building more homes is an absolute priority for this government. Today’s figures are proof that we are getting Britain building again, with new housing starts reaching record levels since 2009.

“It’s vital we maintain this momentum to deliver more quality homes in the places that people want to live. Our housing white paper set out an ambitious package of long-term reforms to do just that.”

The figures demonstrate strong growth in housebuilding right across the country, with Gloucestershire, South Derbyshire and South Norfolk amongst the strongest areas in delivering high levels of starts.

The government’s housing white paper sets out bold new plans to fix the broken housing market and build more homes across England.

At Autumn Statement, an additional £1.4 billion investment was announced for the government’s affordable housing programme, increasing the total budget to £7.1 billion. Since 2010, almost 333,000 affordable homes have been delivered, including 240,000 affordable homes for rent.

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Bovis inject £3.5m into fixing flawed homes following spate of complaints

Bovis Homes have announced that they are allocating a further £3.5m to address issues surrounding the build quality of their homes following a series of complaints from tenants.

The housebuilding giants announced in earlier this year that they would slow rate of production in order to focus more on ensuring the homes built are up to scratch.

Complaints soon made the headlines when customers began reporting multiple cases of newly built homes being handed over in an unfinished or unsatisfactory state in a bid to meet high sales targets.

The additional £3.5m will take overall budget for fixing legacy issues to to £10.5m.

In their FTSE 250 statement, the company commented “This further provision will ensure we are fully resourced to complete the works identified as swiftly as possible whilst at the same time delivering the appropriate high level of service to our new customers.

“We are confident that all legacy issues are now identified and that where possible these issues will be fully dealt with and the related costs incurred during this financial year.”

Group CEO, Greg Fitzgerald said the company’s performance in the first half of the financial year was in line with management expectations: “In the past 11 weeks I have spent a good amount of time with each of our operating regions, visited 85 sites and met the vast majority of our people.  We continue to identify and implement operational improvements and I am very confident we can deliver a successful turnaround, returning Bovis Homes to being a leading UK housebuilder.”

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First modular homes to be built by a housing association land in Coventry

The first modular homes to be built by housing association Midland Heart have landed in Coventry.

The four, three-bedroom properties on ‘Modular Mews’ in Foleshill are part of a pilot scheme delivered in partnership with developers Central Site and Coventry City Council.

Work on the scheme started toward the end of 2016 and during one weekend in February all four homes were craned in after being built off-site at a factory in Nuneaton. Construction of the development was completed within six weeks.

Midland Heart’s Director for Development, Chris Miller said “It’s been an incredibly interesting journey as we prepared the site and watched all four homes being built in just a couple of days.

“Modular homes are just one of the options we are exploring to deal with the effects of the housing crisis and are part of our commitment to build 2000 new homes across the Midlands over the next five years.”

The properties have been built to an incredibly high standard of both design and environmental sustainability making them cost-effective to run and maintain.

Each property includes amongst other amenities an externally fitted electric car charging port and walls that can be removed so properties can be easily adapted.

Brian Maunder at Central Site said “It was a pleasure to work with Midland Heart on delivering the first modular homes in Coventry, the first of many.”

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New government urged to use housebuilding for social and economic boost

The house building industry has set out a blueprint for how it believes the next Government can build on recent increases in supply and go even further to deliver more new homes in the next parliament.

Whilst supply has increased by over 50% in the past three years, if the industry is to deliver the increases all parties now agree are required, the next Government will need to continue to develop the policy agenda to allow existing builders to expand output even further and faster, and also support new entrants and struggling smaller firms. HBF’s proposals include:

  • Promoting policies that enable more builders to build – in particular SMEs – such that they can play their part in increasing output further
  • Providing certainty about the future of the Help to Buy scheme which has been absolutely key in the increases in supply to date
  • Delivering further improvements to the planning system. The time consuming and bureaucratic nature of system remains a constraint on increasing supply. Delays and costs deter new entrants and prevent construction work starting
  • Developing policies that encourage more specialist homes to be built to meet the needs of our ageing population
  • Encouraging better collaboration between infrastructure planners and house building. Builders pay millions each year towards improved infrastructure and more effective coordination would deliver considerable benefits for communities while accelerating delivery.

‘Blueprint 2017: A plan to deliver even more new homes’ sets out in detail what the new Government needs to do in each of these areas to increase supply to the level the country needs.

Stewart Baseley, executive chairman of the Home Builders Federation said “Housing supply has increased significantly over the past three years, but if we are to raise our sights still further and better match supply to demand, Government needs to play its part.

“House builders already have a strong desire to continuing boosting supply, as evidenced by the huge investments being made by the country’s largest builders in the land and workforce needed to deliver additional homes. Ensuring a policy environment that promotes development will allow this investment to be sustained.

“Over decades building homes has become increasingly costly and risky as developers have been bogged down in red tape and inevitable delays. That has driven out small firms and prevented new entrants from contributing. Encouraging greater entrepreneurialism in the sector could help boost housing supply by tens of thousands a year.

“The social implications of our housing shortage are becoming ever more apparent with today’s young people struggling to own a home, high rental payments preventing them from saving for a mortgage deposit and ever more people in sub-standard or temporary accommodation and on local authority waiting lists. Building homes helps address social issues, whilst creating jobs both directly and in the supply chain and delivering investment in existing communities.

“Delivering more desperately needed high quality homes will both help strengthen our society and give our economy a boost in the uncertain years ahead.”

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