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The recipe for a housebuilding recovery has several key ingredients
The sector stands ready to help new housing to be constructed and the economy to bounce back, provided it is given the right ingredients, writes Wayne Gales
The coronavirus crisis has acutely reminded us of the importance of ‘home’.
If there are any positives to take from the pandemic, it could be the opportunity to re-evaluate how we do things in the future, including how we speed up homebuilding.
At JV North – a growing consortium of housing association and local authority partners that creates economies of scale when bidding for government homebuilding grant and procuring works – we have long reaped the benefits of partnership working.
This is going to be more important than ever and while government has provided good support, the severity of the housing shortage means more is needed if we are to make a significant dent in housing waiting lists and help those aspiring to get on the housing ladder.
History shows that the sector always rises to the challenge in economic downturns and we will do so again in this crisis.
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That is assuming we have all the right ‘ingredients’ and are prepared to really challenge ourselves, be more collaborative and innovative than ever (‘key ingredients’), rather than continuing to just talk about it!
It is therefore essential we now hear the finer detail of the multi-year settlement, what is deemed affordable (for many, social rent), tenure types and other obligations we must meet.
We also need to know whether the existing grant regime linked to the current programme (which expires next March) will be extended as completion dates are being pushed back.
“With large-scale job losses expected, many people will struggle to own a home and rent affordability will become an increasing challenge for some”
These answers are needed now and will give all stakeholders much-needed confidence and certainty.
Through effective construction and development partnerships we can also help restructure an aptly skilled workforce and supply chain (more ‘key ingredients’).
Of course, understanding the downturn’s impact on the housing market is vital along with analysing how different tenures will be affected. Flexibility must be built into new ways of working.
With large-scale job losses expected, many people will struggle to own a home and rent affordability will become an increasing challenge for some.
We should prepare now by looking at the flexibility and diversity of our offer and, importantly, provide choice to meet people’s needs.
Operationally, it will take time for building sites to reach full capacity again. Additional cost implications are likely as contractors implement new ways of working in line with revised government guidelines.
We need to appreciate this, work together to share risk, keep people safe and do our bit to support the financial sustainability of our partners and their supply chains.
After all, they are also a ‘key ingredient’, a point that is occasionally lost on some.
How we collectively manage these negotiations will be crucial; give-and-take will be needed from all.
Local authorities have been encouraged by government to mobilise now so the planning (key ingredient) and development process can continue once restrictions ease. Only time will tell if this is happening quickly enough or at all in some parts of the country.
As well as the challenges presented, there will be opportunities to take on distressed, challenging projects that are part complete, possibly available through house builders or by engaging with private developers looking to sell discounted properties to support liquidity challenges.
This could offer a quick and cost-effective route to increasing much-needed affordable homes in some parts of the country.
“We are in the midst of an unwanted and unprecedented period of uncertainty, but with this challenge has come an opportunity to pause, recover, re-evaluate and reignite housebuilding with the all the right ingredients”
This is also a perfect time to create the homebuilding marketplace we want, rather than enduring age-old frustrations. Modular housing (key ingredient) is a prime example – the sector knows the benefits and obstacles.
We have the required pipeline to build factory homes en masse and with some financial help from government, together we can make huge inroads into addressing the housing crisis through this approach.
Change rarely happens in isolation, so an integrated approach featuring landlords, government, local authorities, contractors, developers and consultants is needed.
JV North is sharing an unprecedented amount of market intelligence and data with all its stakeholders.
The consortium’s work with another key partner, Homes England, to finalise our recovery plan is also going to be crucial.
We are in the midst of an unwanted and unprecedented period of uncertainty, but with this challenge has come an opportunity to pause, recover, re-evaluate and reignite housebuilding with all the right ingredients.
It will, however, require everyone involved to think differently and to give and take a little for the common good.
Wayne Gales, chair, JV North; and chief executive, Weaver Vale Housing Trust
