Making a housebuilding splashPosted: May 14, 2019 Filed under: Housebuilding, Prefabrication | Tags: Homes England, Sekisui House, Urban Splash 1 Comment
Originally posted on insidehousing.co.uk on May 14.
The entry into the UK market of an overseas company that last year built almost as many homes as Barratt, Taylor Wimpey and Persimmon combined is by any standards a big deal.
That’s even before you add what looks like a major step forward for modular building in the UK and one of the most eye-catching individual investments yet by the self-styled disruptors at Homes England.
The £90m deal involves Sekisui House, the biggest housebuilder in Japan, taking a 35% equity stake in Urban Splash’s modular House business. The Manchester-based developer will retain 60% with Noel McKee, one of its existing investors and founder of We Buy Any Car, taking what’s described as an incremental 5% stake
Homes England will take a 5% stake worth just over £3m in the company and will also be providing a £27m loan from its £4.5bn Home Building Fund.
Sekisui House built almost 44,000 new homes last year, almost 5% of all those built in Japan, where new build numbers and demolitions alike are much higher than in the UK.
Remembering Ronan PointPosted: May 14, 2018 Filed under: Construction industry, Council housing, Grenfell Tower, Prefabrication | Tags: Ronan Point Leave a comment
Originally posted on May 14 on my blog for Inside Housing.
This week marks the 50th anniversary of what was seen until recently as the biggest disaster in the history of council housing.
At 5.45 in the morning on May 16, 1968, a cake decorator called Ivy Hodge put the kettle on for a cup of tea. A gas explosion triggered by a faulty connection to her cooker blew out the walls to her flat and triggered the progressive collapse of one corner of the 22-storey Ronan Point tower block in Newham in east London.
Four tenants were killed and several more had miraculous escapes but the fact that the explosion happened so early in the morning prevented an even worse disaster – most people were still asleep in the relative safety of their bedrooms rather than exposed to the collapse in their kitchens.
That aside, the most shocking thing about the disaster was that it happened in a new building and the first tenants had moved in two months before.
A public inquiry quickly established not just the fault in the gas connection but fundamental flaws in the large panel, system-built design. The collapse could have been triggered not just by an explosion but also by high winds and fire
That led to reform of the rules on gas safety and a shake-up of the building regulations to ensure that the structure of tall buildings became more robust.
Over the years, Ronan Point came to be seen as the high water mark of both council housing and modernist architecture.
As time went on the blame was increasingly laid at the door of architects, local authorities and even the whole idea of council housing. It’s certainly true that some designs were flawed and untested and that some councillors arrogant, self-aggrandising and even corrupt.
But some important factors are edited out of that account.
The ides of NovemberPosted: October 31, 2016 Filed under: Benefit cap, Homelessness, Housebuilding, Housing benefit, Prefabrication | Tags: Gavin Barwell Leave a comment
Originally posted on October 31 on my blog for Inside Housing
The last four months have seemed to offer a series of new possibilities for housing from Theresa May’s new government. From the prime minister’s rhetoric about ‘a country that works for everyone’ to housing minister Gavin Barwell’s emphasis on the importance of all tenures, the signals have been pointing to a significant shift away from the stance of the previous Tory administration. Friday brought good news when the Homelessness Reduction Bill won a second reading with the support of the government.
But events in the next month or so will go a long way to determining where those signals are really leading us. For all the rhetoric we don’t know much more detail than when the government went back to work at the beginning of September. While the dates of some events are already set, others are expected “shortly”. Here’s a selected list:
A week today sees the start of the reduction in the overall household benefit cap from £26,000 to £23,000 in London and £20,000 elsewhere.
An updated impact assessment published in August estimates that 88,000 households (107,000 adults and 244,000 children) will be affected by the lower cap, including 64,000 who would not have been covered by the original cap.
That is much less than in the original impact assessment, one reason being that the government has introduced new exemptions for guardians and carers in response to defeat in the courts. It also seems on the low side given that it means housing benefit will not cover the rent for families in more expensive areas and with higher rents and for larger families everywhere, even in social housing. And it will only encourage more landlords to restrict their lettings of ‘affordable’ homes to ‘working families’.
To borrow a line from Steve Hilditch, if October ended with the Homelessness Reduction Bill’s second reading, then November will kick off what can only be a homelessness expansion policy.
Skills and homesPosted: September 23, 2016 Filed under: Brexit, Construction industry, Europe, Housebuilding, Labour market, Prefabrication Leave a comment
Originally published on September 23 on Inside Edge 2, my blog for Inside Housing
If ‘Brexit means Brexit’ should it also mean a new programme of investment in social housing?
After a referendum that saw 63% of social tenants vote to leave the European Union, the attractions should be obvious. For ‘left behind’ voters it could mean both homes and jobs. For the government, now apparently edging away from an obsession with home ownership, it could offer a big pay-off from Philip Hammond’s ‘fiscal re-set’. For the purposes of this blog I’ll ignore all the other arguments in favour.
But it could also play into the wider politics of Brexit. Theresa May’s soundbite has yet to be translated into anything substantial but seems to be heading towards a ‘Hard Brexit’ outside the single market on the grounds that the referendum was a vote for controls on immigration.
That has huge implications for the housebuilding sector and the wider construction industry. Berkeley Homes boss Rob Perrins even claimed last weekend that a block on EU immigration could cut new homes by half. That is an exaggeration that could say more about his own workforce in London than the industry as a whole but this is still a huge issue. An alliance of construction organisations warned Brexit secretary David Davis earlier this month of a skills crisis if he does not make it a priority in the negotiations to come.