The future of UK housing and the construction industry

It’s been a turbulent period for the construction industry over the past year. With the ongoing pandemic and the continuing uncertainty surrounding post-Brexit trade deals, it has been somewhat difficult for companies to plan their projects

In this article, The Access Group talks about the future of UK housing and the construction industry, and explores how housebuilders can prepare as we look ahead.

1. 300,000 homes per year

The target of building over 300,000 houses a year was set back in 2017 by the then chancellor Philip Hammond. This was further emphasised in the 2019 Conservative manifesto to “increase the number of homes being built” and stressed the need to rebalance the housing market towards more homeownership. Despite the Covid-19 pandemic, 2020 saw the delivery of houses reach numbers not seen in over three decades. So, what does this mean for the construction industry? Afterall, the government’s post-Covid recovery aim is to “build, build, build”.

It should go without saying that this will present a number of opportunities for housebuilders, with more contracts being awarded for large housing projects. However, this has been coupled with a considerable skills shortage – workers are retiring sooner than they are being recruited. Does the industry have the talent to cope with the increasing demand?

For now, projects are having to make do with the skill sets that are currently available. This means that managers are having to really think about how to allocate their human resources. Project management software is increasingly being adopted as it has the most accurate data available – making decision-making easier and ensuring things run more smoothly.

2. Booming housing market

Traditionally Stamp Duty is normally paid on houses over £125,000. However, over the last year, the government has increased this threshold to properties over £500,000. This may be a contributing factor to an ‘incredible demand’ for houses and, in turn, an increase in the cost of building work on UK homes.

The extra projects being undertaken for new builds and renovations has meant demand for essential materials such as concrete and timber has dramatically increased. Reports have suggested that record surges have been found in the price of timber, bricks and steel. This has been exacerbated by the combined impact of Brexit and the ongoing pandemic.

While the uptake of additional projects is exciting for housebuilders, the competition for materials will increase the time it takes for them to be completed. This means that firms should be more focused on how they manage their supply chains. By utilising the right software, such as EasyBuild, managers can have the most up to date information at hand – very helpful in being able to minimise the risk of material shortages.

3. The Future Homes Standard

At the beginning of 2021, the government published the outcome of its ‘Future Homes Standard’ consultation. This looked to make changes to regulations in improving the energy efficiency of new homes.

The new Future Homes Standard has stated that all new homes built from 2025 will produce 75-80% less carbon emissions than homes delivered under current regulations. So how will this be implemented?

• Homes built from 2022 will produce 31% less carbon emissions
• In 2023, the government will consult about the technical aspects of the Future Homes Standard.
• The Regulations will be updated again before coming into effect in 2025.

It goes without saying that this demonstrates a huge change for the future of UK housing and construction. Eco energy experts are drawing up plans to ensure new homes are being built in line with the new energy efficiency standards.

4. Modern Methods of Construction

‘Modern Methods of Construction’, or MMC, is a collective term that refers to new construction techniques that can be used as opposed to the traditional methods. As a result of the rising demand and new regulations, construction companies are always on the lookout for alternative ways to build homes.

Kit houses

The most common projects you’ll see the characteristics of MMC on are those that build ‘kit houses’. The majority of the manufacturing process will actually take place offsite. Then the ‘kit’ will be moved to the site where it is erected. This comes with a whole host of advantages that address the challenges that the construction industry faces today. With the increasing skills and labour shortage being seen, kit houses don’t require as much human resource. It also doesn’t take as much time, meaning housing projects are more likely to be completed on time. However, with less design flexibility, it’s not always possible to make changes at the last minute.

Modular building

Modular construction has been touted as the “push to solve the housing crisis”. It’s very similar to kit houses in the sense that a lot of the building is done offsite. A building’s components are constructed in a factory before being transported to the site for assembly. This has been praised as it’s much easier to control, reducing wastage and cutting down on costs. As different aspects of a home can be built at the same time, it also reduces the time to complete a project. This is crucial to the government’s aim of building 300,000 houses per year.

It is not only the new MMC techniques that are proving hugely valuable to the industry. Technology and software, like EasyBuild, at the cutting edge of industry is increasingly being used by firms that are looking to improve productivity, project efficiency and cut costs.

5. Safety

Health and safety (H&S) should always be at the forefront of any project or construction manager’s mind. What we have seen over the last five years has only gone on to prove its importance. More time and money is now being spent on checking whether applications, such as cladding, adheres to the H&S standards.

At the start of 2021, the UK government established a new regulator to ensure that construction materials are held to the highest standards of safety. It will have three main functions:

• Oversee the safer and standard of all buildings.
• Directly assure the safety of higher-risk buildings.
• Improve the competence of people responsible for managing and overseeing building work.

With the added time and responsibility for approving materials used, it would be prudent to think that it will only prolong the length of a project.

Summary

The future of UK housing and construction is going to be one with a lot of changes. With the government pledging to build 300,000 homes a year, the onus is on housebuilders to carry out a number of projects that at a rate they may not have seen before. This means they will have to look towards new ways of doing things.

Whether it’s more modern techniques or through the uptake of exciting software to help with cost-cutting and efficiency. With the introduction of new standards and regulatory bodies by the UK government, the industry should be prepared for additional red tape that may increase project time.