Overpopulation of houses in the UK: Quantity required?
Revitalising the UK Housing Market: A Focus on Brownfield Development
The UK housing market is witnessing a shift, as small-scale property developers are making a comeback, with many first-time developers entering the scene. This resurgence is particularly noticeable in the realm of brownfield development, which presents a significant opportunity for increasing the housing supply.
Currently, small-scale developers account for only 12% of the country's housebuilding, a stark decrease from their heyday when they accounted for 30%. This trend, however, is starting to change, as more existing landlords are recognising the potential of the buy-to-let market, which has diminished, and the profit-generating possibilities of simple conversions.
The government has been supportive of this change, facilitating increased permitted development rights to make it easier to convert existing buildings into homes. This encouragement is essential, given that brownfield land, according to the Campaign to Protect Rural England's (CPRE) State of Brownfield 2022 report, could support the development of up to 1.2 million new homes in England.
However, most of this brownfield land is in the form of relatively small buildings and plots that don't appeal to large home builders like Persimmon. This is where local and national government intervention becomes crucial to ensure that first-time property developers can capitalise on the opportunities that brownfield development offers.
Research indicates that housing developments on brownfield sites are completed six months more quickly than those on greenfield land. This expediency, coupled with the potential for increased housing supply, makes brownfield development an attractive proposition.
The UK government’s target of 300,000 new homes per year originates from Labour’s pledge in their current parliament to build 1.5 million new homes mainly in England, reflecting a policy response to the housing crisis with an emphasis on increasing supply through planning reform and investment.
However, achieving this target may be challenging, given various projections and obstacles. A nuanced approach is needed that involves not only meeting targets but also addressing public sentiment and leveraging alternative solutions, such as brownfield redevelopment, to address the housing shortage effectively.
In conclusion, the revitalisation of small-scale property development and a focus on brownfield sites could be key to meeting the government's housing targets and addressing the housing crisis in the UK. Government support and intervention will be crucial to ensure that first-time property developers can take advantage of the opportunities that brownfield development presents.
- To meet the UK government's target of 300,000 new homes per year, a nuanced approach is required that includes not only increasing supply, but also addressing public sentiment and leveraging alternative solutions like brownfield redevelopment.
- The current trend of small-scale developers accounting for 12% of housebuilding in the UK is shifting, with more existing landlords recognising the potential of the buy-to-let market and the profit-generating possibilities of simple conversions.
- Government support plays a vital role in the revitalisation of small-scale property development and the focus on brownfield sites, as increased permitted development rights have made it easier to convert existing buildings into homes.
- Research shows that housing developments on brownfield sites are completed six months more quickly than those on greenfield land, making brownfield development an attractive proposition for first-time property developers.
- Brownfield land, which could support the development of up to 1.2 million new homes in England, is not appealing to large home builders like Persimmon, making local and national government intervention necessary to ensure that first-time property developers can capitalise on the opportunities that brownfield development offers.
