govt self build report summarised

[james armstrong]

Arrived to-day with 179 pages and twenty annexes,From james A. summary of text 
HOMEBUILDING IN THE U.K.    (Report and  20 annexes!)


A Market Study,   September, 2008

 Office of Fair Trading 1020

Executive Study,  Key  Findings :

1.6 …little evidence of competition problems with the delivery of new homes in the U.K.

1.7 no evidence  of using market power    or that they ( national housebuildersd ) are able to  restrict supply or inflate prices.


1.9 Small homebuilders  and individuals building their own  homes will build on smaller sites….
Without self builders  some sites would remain  undeveloped.   The UK lags behind other countries  in htenumber oifd self build projects… it is important to maintain a vibrant s-b sector.

Key Recommendations

1.16 Foillowing organisations are now committed to a code of conduct…. H B F,  NHBC,  Fed of Master Builders.


1.18 Four years ago Barker  called on  the industry to develop a code of  conduct…….(now) absence of any code..

1.19 … if industry fails… recommend immedate intervention…

1.20 proposed  community  infrastructure payments ( CIL)  for small homebuilders (but) timing of payment… 

1.23 with a view to maximising output we recommend that local authorities  should consider the possibility that group self build  could deliver a healthjy portiuon of new houisng . 
1.24 Local Authorities  should be encouraged to make publicly owned land  available to an 'enabler'  who will control the overal design of the site, divide it into suitable plots and  plan necessary infrastructure allowing people building their own homes  to develop these plots.

Self builders
4.96  A category of  development that may face significant barriers to entry is self build.  The Calcutt Review  highlighted the significance of the s-b sub sector. It is estimated to account for up to ten percent of new production. But found that housing policies tended to neglect this category of development., in particular the Calcutt Review raised the issue of access to land.  The Calcutt Review recommended LPA's and government agencies  disposing of land   do more to ensure that  small plots of land  are made available to self builders.
4.97  S-B is rightly or wrongly seen as  a radical option fraught with potential npitfals.       Stories of failed self build  projects are not hard to  come by.  Nevertheless , according to a survey by the Norwich and Peterborough Building Society  up to 70 per cent of the public  at some point consider building their own home.
4.98 UK  Levels of  s-b  are far below the levels seen in Japan, Germany and  France. Self Builders typically report  much greater levels of satisfaction with their home   than homebuyers of speculative built homes.  .. it seems clear that an invigorated  self build secor  to the homebuilding market   could deliver improved satisfaction  and also greater output,  by making nerw build homes ore affordable and potentially accessing development sites overlooked by other homebulders.  We discuss sle fbuilding  in ore depth in 
Annexe R.

Remedies (Consumer detriment remedies)

7.24  Smaller homebuilders and self builders  are an extremely important source of supply of new homes  They account for some 32% of overall homebuilding (see chart 3.2) and typically work with smaller sites   that are not efficient  for larger builders . Retaining smaller homebuilders and selfbuilders  in the industry 
is likley to support   the Government' overall targets.

7.25        To that extent we recommend that CLG and the Welsh Assembly  Government   ensure that they fully consider the needs  of smaller homebuilders and self builders  and that appropriate measures are put in place   to ensure that smaller homebuilders and  self builders  have access to the necessary technologies  to deliver zero carbon.

7.28 The smallest homebuiders working with the smallest plots  will be assisted by delaying CIL until construction of a home is complete.
ENABLED SELF BUILDING 
7.29  …we estimate that self bulding in all its forms accounts for approximatelt 16,000 new homes everyt year(see Annexe R) this accounts for Approximately  10% of new home output…   (yet) it falls below the levels of self bulding  seen in France, Germany and Japan.

7.29 Self building can make homes more affordable . Much s-b is about reducing costs rather than designing dream homes, and , by removing the need for a homebuilders margin,  many self builders can save up to a third  of the price of a similar home on  the open market.
7.30  There are  however significant knowledge barriers  to self building…..Enabled self building can make self building more accessible by providing  'oven ready ' plots with infrastructure  and planning permissions  to be develped under the guidance  of a project/site manager.
7.32  we recommend    that local authorities consider  whether  land within  their land portfolio  which is suitable for development  could be used for   enabled self building  to deliver more affordable  housing  within their communities.

CHART 3.2      Total number of homes built by  size of homebuilder, 2006

2,000 units +               80,000
101-2000                    48,000
1-100                       44,000
self build                  16,000

      Source NHBC New housebuilding statistics.

(total new housebuild 188,000)


END OF SUMMARY  by  James Armstrong       Dorchester   Sept 08