The government鈥檚 dramatic-sounding challenge to build homes for 拢60,000 turns out to be less of a struggle if you look at what the price doesn鈥檛 include. So, asks Stuart Macdonald, is the competition a waste of time, or will it improve the quality of Britain鈥檚 new homes?
When deputy prime minister John Prescott announced at Labour鈥檚 party conference last September that he was challenging the construction industry to build homes for 拢60,000, he forgot to mention one thing: it happens already. The rules underlying English Partnerships鈥 鈥渄esign for manufacture鈥 competition 鈥 the vehicle for Prescott鈥檚 vision 鈥 are so relaxed that housebuilders are following them without knowing it on almost every large site in the country, even in London and the South-east.
For a start, Prescott鈥檚 scheme contains some glaring omissions. Land costs are excluded, and so is infrastructure such as roads and sewers. As Joe Martin, director of the 星空传媒 Costs Information Service, points out, these elements often make up about two-thirds of the per-unit costs of most residential developments. Strip these out from current build costs and you can beat the 拢60,000 target every time. The latest figures from the BCIS show that the average 75 m2 home costs 拢53,721 to build (see elements cost box, right). Even if you include infrastructure costs, homes on infill sites have an average per unit cost of 拢72,000. So what鈥檚 the point of the competition?
The government insists that the competition will reap lasting benefits. The idea is that if builders turn out top-quality competition entries, they will have no excuses not to continue providing these well-designed homes, with EcoHomes ratings of 鈥渧ery good鈥, on every scheme they do. To a certain extent, Martin agrees: 鈥溞强沾 a home for 拢60,000 is, within these parameters, very easy. It gets done every day. What is going to be interesting is just what people produce for the 拢60k 鈥 that is the exciting bit. The other thing is that these designs have to be able to be built again elsewhere.鈥
Robin Brodiecooper, partner at consultant Gleeds, agrees that the emphasis on raising standards of design is laudable. However, he sounds a cautionary note: 鈥淭he competition is very important, but the key is to make the houses sustainable. For me the test is understanding what comes in a 拢60k home and whether it will stand the test of time. It is quite an investment for someone and you don鈥檛 want them falling apart 15 years down the line. This is a danger if people don鈥檛 use robust materials in order to hit the 拢60k target. Poorly prepared external timber, for example, will be rotten in 15 years鈥 time and have to be replaced. But it can be done. There may be a maintenance regime that occupants need to undertake to keep the house at a certain standard.鈥
Brodiecooper also feels that if architects are clever they will be able to deal with another perennial concern for housebuilders: nimbys. 鈥淎rchitects need to be careful in the design stage and head off nimbyism. But I think they can do it. The last thing we want is row upon row of 拢60k houses all looking the same if people do this into the future.
If it helps young people get a foot on the property ladder then good, but they don鈥檛 all want to be on the same-looking rung at the same time.鈥
So just what will architects and housebuilders produce for EP鈥檚 competition, the shortlist for which was due to be published as QS News went to press? Barry Munday, chairman of architect PRP, which is working on proposals for the competition with housebuilder Persimmon and steel-frame company Fusion, says: 鈥淭hings we will be looking at if we win are better environmental standards, higher quality finishes and more adventurous exterior materials. There will always be a brick option but perhaps we could use render and timber finishes too 鈥 Hitting sustainability and higher environmental targets while staying within budget will be where some of the biggest cost pressures will be. English Partnerships is trying to get higher standards for lower costs and we will give doing this our best shot.鈥
The shortlist of 33 successful bidders, from the 50 who expressed an interest when the initial bidding closed on 13 May, is due to be published any day now, so details of precisely what can be built for 拢60,000 will soon be readily available. But what about the longer-term government aim of encouraging the industry to replicate its successes in the competition on open market sites? The BCIS鈥檚 Martin says: 鈥淭he 拢60,000 house is a good initiative as it makes people look at the issues of supply and quality. However, if you reduce the build cost, that will allow developers to pay more for land, hence pushing up prices. This is a far from desirable outcome.鈥
PRP鈥檚 Munday agrees: 鈥淭here are concerns among some architects that the programme is a bit of a waste of time 鈥 if you get a purely open market site the housebuilder is still more likely to take the extra profit that comes from building a home more cheaply or plough it into securing more land. But if [in future] homes are built on government-owned sites then they are much more likely to happen.鈥
Perhaps given last week鈥檚 confirmation from the ODPM and the Treasury that English Partnerships has bought 100 surplus sites from the NHS, and that the government was examining a further 700 public sector sites for possible use for housebuilding, there will be many more sites where the 拢60,000 house will become a regular feature. However, given that housebuilders prefer to build profits than beautifully designed homes, Prescott鈥檚 challenge does ring rather hollow.
The 拢60,000 house competition
- Launched at the Labour Party conference last September
- Seven sites owned by English Partnerships will provide 1000 homes, 30% of which will need to be 拢60,000 homes
- 33 shorlisted bidders from 50 expressions of interest will be announced in the next week
- The 拢60k house must be at least 76.5 m2
- Land costs and external infrastructure are excluded from the 拢60k
- The type of construction is not stipulated but bidders must show 鈥渃lear evidence鈥 that the approach can be replicated on other sites
- Preferred bidders announced 31 October
- First homes on site by 鈥渇irst half of 2006 鈥 possibly earlier鈥
Main constraints to hitting 拢60,000
Who has said they can do it?
Redrow:
its 鈥淒ebut鈥 home is on the market
for 拢55,000 (pictured is a queue of would-be Debut homeowners in Rugby)
Wates:
it said in January that it would build
homes for 拢60k at its development in Whitefriars, Coventry
Persimmon:
it is working with architect PRP and steelframe firm Fusion
Source
QS News
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