Self Build Market Round Up December 2022
FMB HOUSEBUILDERS SURVEY SHOWS OVER HALF OF ALL PROJECTS USE SELF AND CUSTOM BUILD FUNDING
The 11th Federation of Master Builders (FMB) Housebuilders Survey 2022 has found that custom and self build represents a significant stream of business for small- and medium-sized (SME) builders, with over 50% saying that self and custom build contracts were the most popular form of funding.
The survey of FMB members builds a picture of the barriers facing SME housebuilders, with land topping the list as the most significant limiter on growth. This is impacted by issues around viability of land, while planning remains the second biggest barrier to activity, followed by issues stemming from the skills shortage.
Good news comes in the fact that the materials crisis is easing, and that the link between custom and self build and the SME sector is becoming better recognised.
Constraints on supply
1 Land, 62% of respondents cited the ‘lack of available and viable land’ as the most serious constraint on SME housebuilders ability to build more homes.
2 Planning, The second major barrier remains the planning system, with 60% of respondents identifying it as a problem. The lack of resourcing in planning departments consistently caused delays – which drove SME costs up
3 Skills, 47% of respondents stated that skills remains an issue. However, 1/4 said they were planning to grow their on-site workforce.
Small sites
As the number one issue, over 4 in 5 respondents said that the number of small sites opportunities were decreasing, up to 82% as opposed to 71% in the 2021 survey. However this is tempered by the fact that 25% say the felt that local authorities were now taking small sites seriously, up from 11% the previous year.
SME housebuilders
The survey is an important indicator of the health of the SME housbuilder sector which has declined dramatically with time. SME house builders used to deliver 40% of new homes just over 30 years ago, but they now build around 10%. They are also responsible for building nearly all of the community led, custom and self build homes in the UK.
The FMB Housebuilders Survey has been running for 11 years and canvasses the opinions of FMB members, with 122 responses received, all of whom were builders in England. Of these, 47% build homes as contractors – and of this section 89% build self and custom build homes, designed to the specification of the owner.
MATERIALS SHORTAGE EASES
The latest data from the Construction Leadership Council (CLC) points to a significant improvement in the shortages of many construction materials, with lower costs and shorter lead times as the markets return to some form of normality post-pandemic.
The CLC’s Product Availability working group, co-chaired by John Newcomb, CEO of the Builders Merchants Federation and Peter Caplehorn, CEO of the Construction Products Association, recently reported that the production and supply of materials was easing, with the exception of gas boilers and components, and renewables, such as solar photovoltaics.
The latter have seen an upsurge in interest as a consequence of the energy crisis, as more people with projects factor in greener building and energy saving initiatives in an attempt to minimise the costs of energy.
ROWLEY OUT AND LUCY FRAZER IN AS NEW HOUSING MINISTER
The Rt Hon Lucy Frazer KC MP has replaced Lee Rowley as the housing minister, the fifth incumbent in the post in 2022 and the 21st since 1997.
Mayflower is please to note that Frazer has already been to the Federation of Master Builders Conference, and is starting to get an understanding of the issues of SME housebuilders, all of whom build the homes of the custom and self build sector.
Previously Frazer was Minister of State at the Department for Transport for six weeks, and was Financial Secretary to the Treasury for the year before that, and has stints as the Minister of State in the Ministry of Justice. She has been the MP for South East Cambridgeshire since 2015.