Grand designs for self-built homes
COMMENT It’s extraordinary to think that Grand Designs is now 21 years old. First aired in 1999, it has been a fascinating insight into people’s ambition – and travails – to create a personalised home. Yet over that period, housebuilding has moved the other way – off-the-peg homes built by a decreasing number of big builders. The result is less variety, competition and consumer choice.
This trend is in sharp contrast to other developed countries. Here, self-commissioned homes (both self-built and custom-built) account for just 12% of the market. Yet across developed countries the average share is 40%, and in countries including Holland, Germany and Japan more than 50%. The result is that our housing market offers less choice and variety to consumers, as fewer and fewer builders control more and more of the market.
This could now change, for two reasons – policy and technology.
COMMENT It’s extraordinary to think that Grand Designs is now 21 years old. First aired in 1999, it has been a fascinating insight into people’s ambition – and travails – to create a personalised home. Yet over that period, housebuilding has moved the other way – off-the-peg homes built by a decreasing number of big builders. The result is less variety, competition and consumer choice.
This trend is in sharp contrast to other developed countries. Here, self-commissioned homes (both self-built and custom-built) account for just 12% of the market. Yet across developed countries the average share is 40%, and in countries including Holland, Germany and Japan more than 50%. The result is that our housing market offers less choice and variety to consumers, as fewer and fewer builders control more and more of the market.
This could now change, for two reasons – policy and technology.
A radical step
First, I sense a shift in public policy and attitudes among key decision-makers. Having talked with MPs, senior civil servants and key influencers, I think we have reached a tipping point in how housebuilding is seen. Don’t underestimate how the leasehold scandal has damaged the big builders’ credibility.
Last month saw the publication of the Bacon Review, led by the eponymous Richard Bacon MP. Richard has been banging this drum for more than a decade and, to his credit, his persistence has resulted in a report commissioned by the prime minster himself.
It’s a well-written report with some good ideas. Yet in some ways, its significance lies in the fact that the PM commissioned it – and did so with very specific terms of reference. This means that the recommendations will drive government policy, requiring all departments to deliver change. This isn’t a report that will gather dust on a Whitehall shelf.
For example, the review recommends direct intervention by Homes England, not least in “producing and delivering” serviced plots. This is a radical step for a Conservative government. Local development orders and reforms to planning are proposed, to not just recognise self-commissioned homes but to actively promote them in local plans. Many of the recommendations are detailed and technical, but they address the specific barriers which have held things back, in land supply, in finance and in regulations.
For example, Homes England and the ministry are tasked with creating an active Small Sites Programme for serviced lots, and with overhauling the land procurement and regulatory framework that has held back the supply of such sites. When combined with proptech start-ups, such as RenKap, which are making the development of small sites feasible, this policy shift could result in a gear change in available serviced plots – one of the main barriers for prospective self-builders.
Tech drives change
This highlights the second reason why I think this could be a turning point. Technological innovation is making self-commissioned homes a practical option for many more people, both in matching consumers and plots and in enabling consumers to design and commission what they want.
In particular, modern methods of construction offer consumers much greater choice and control. Factory-built homes enable consumers to control the design in a much more accessible way than traditional on-site construction. Pioneers such as Huf Haus in Germany have shown what can be done at the top end of the market, and the growth of MMC will extend this to mid-market buyers. In Japan, 75% of new detached homes already use off-site prefabrication.
Of course, there remain real barriers to the growth of self-commissioned homes, including the limited availability of suitable mortgage products and practical barriers for busy families to overcome.
However, the Bacon Review signals a real change in government policy and support for this form of development, while technology and materials are changing how we identify and service land and how we build. So perhaps by the 25th birthday of Grand Designs, our housing market may look rather different. I, for one, hope so.
Mark Prisk is a former housing minister. He is a strategic adviser to Handley House and chairs Saltaire Housing
