Housing associations in the UK would need to buy a further 138,000 plots of land if they are to meet their target to ramp up the delivery of new homes, Savills consultancy has said.
Modern methods of construction MMC could be a pivotal building solution if the top 50 largest builders are to deliver the number of homes projected over the next 5 years – see below.
In a report shared exclusively with Inside Housing, it found that the top 50 largest builders in the sector need to secure the plots of land.
This is necessary, Savills said, if the top 50 are to deliver their ambition – as revealed by Inside Housing’s Top 50 Biggest Builders survey – of delivering 50% more homes over the next five years, or 250,000 homes between them.
This will entail a rise of up to 53,000 homes per year from the current output of 35,000 homes annually.
The report found that the associations need to secure around 4,000 plots to deliver the homes expected in the next year, and a further 27,000-37,000 plots per year over the next four years.
It said the sector was increasingly turning to “strategic land” – which does not have planning permission.
It said: “Demand for land is not just from the house builders. Housing associations are planning to build increasing numbers of homes with less reliance on Section 106 and therefore require more land.
“Housing associations are also turning to strategic land (land without planning permission) to take a longer-term stake in their land pipelines. In our annual survey of housing associations (The Savills Housing Sector Survey 2018), we found 26% of those who didn’t own strategic land were looking to acquire this type of land in 2018, double that of last year in 2017.”
Modern methods of construction offsite MMC consultant Bobby Barr believes that over the next 5-10 years Housing associations, councils and the larger construction builders will have to start building using modern methods of construction house building systems to be able to meet the demand and the expected delivery targets set out for the 2030 poor fuel homes target set out by the government and which seems destined to fail.