Space standards and market pressure

1. Space standards and market pressure Paul Morrell, Deputy Chair, CABE

5. Very nice – but is there room to swing a cat?

6. Comparison of design occupancies with Parker Morris recommendations Design occupancy (persons) sq m GFA/person Source: Housing Association Standards, Davis Langdon for the DFoE, 1993

8. 1993 Study by Salford University for the Joseph Rowntree Foundation • 60% of Housing Association homes built in 1992/3 were between 5 and 15% below Parker Morris standards (v 8% above) • 4% were more than 25% below Parker Morris (v 1% above) • 88% of all units were below Parker Morris (v 79% in 1989/90 survey by National Federation of Housing Associations)

9. Source:New Homes in the 1990’s,Karn and Sheridan, for the Joseph Rowntree Foundation, 1994quoted in Housing Space Standards, by HATC Ltd for the GLA, 2006

10. Source:Design Practice and Volume Production in Speculative Housebuilding. Alan Hooper, Chris Nicol - 1999

11. Source:Unaffordable Housing - Fables and Myths, Evans & Hartwich, The Policy Exchange, 2005

12. Source:Unaffordable Housing - Fables and Myths, Evans & Hartwich, The Policy Exchange, 2005

14. This marks a new era for housebuilding in Britain where sustainability, quality and space are considered together. Trevor Beattie • This will give us the scope to really give the functionality, usability and pleasure that design can bring. Sunand Prasad • This will allow more flexibility in design. More space will allow better architectural expression. Wayne Glaze, Hawkins Brown

15. The tension betweenquantityandquality

16. Ministers must ensure that moves to make new homes environmentally-friendly do not discourage development. The Calcutt Review,

18. The tension betweencostandvalue

19. The negative consequences of increased space standards • Less habitable rooms per hectare • … so increased land take/cost = less capacity • More built area per habitable room • … so increased build cost (or lower quality) • … so higher sale prices ??

20. Volume housebuilder’s cost make-up % % *£38,200 per plot for private legal completions

21. The negative consequences of increased space standards • Less habitable rooms per hectare • …so increased land take/cost = less capacity • More built area per habitable room • …so increased build cost (or lower quality) • … so higher sale prices ?? • More money spent on new houses = less new houses • …and less spent on existing houses (Decent Homes)

22. The negative consequences of increased space standards • Less habitable rooms per hectare • …so increased land take/cost = less capacity • More built area per habitable room • …so increased build cost (or lower quality) • … so higher sale prices ?? • More money spent on new houses = less new houses • …and less spent on existing houses (Decent Homes) • Higher energy costs (HIP impact?) • ..and all space-related costs (routine maintenance, rates etc) • ..and burden on local infrastructure

23. The negative consequences of increased space standards • Less habitable rooms per hectare • …so increased land take/cost = less capacity • More built area per habitable room • …so increased build cost (or lower quality) • … so higher sale prices ?? • More money spent on new houses = less new houses • …and less spent on existing houses (Decent Homes) • Higher energy costs (HIP impact?) • ..and all space-related costs (routine maintenance, rates etc) • ..and burden on local infrastructure • Less compact neighbourhoods

24. Market pressures re space standards • Customer preference

26. Market pressures re space standards • Customer preference • Location, location , location • Affordability

27. Market pressures re space standards • Customer preference • Location, location , location • Affordability

28. Market pressures re space standards • Customer preference • Location, location , location • Affordability

29. Mortgage repayments as a percentage of household income 2006 Long-term average Source: Savills

32. Bovis strategies/trends • Aim for 100% strategically sourced land • Rolling replacement of developed land • Increased coverage in England and Wales and increased volumes • Move towards smaller, more affordable homes • More social and partnership housing • Strong product development: innovation/continuous improvement through R&D • Accelerating D&B through efficient construction

33. George Wimpey strategies/trends • To have the lowest unit land cost of any major builder (more strategic land buying) • To create the most value in the planning process • To maximise value for every plot • A range of products: from one-bed apartments to large detached houses • To be the most efficient builder…at the lowest fit-for-purpose cost base ( including VE, RM) • Customer satisfaction: delivering as advertised

34. We…aim to be the housebuilder of choice for our customers, our employees, our shareholders and for the communities in which we operate.

35. BROAD Broad; cost leadership Broad; Differentiation Strategic Target Narrow (focus); differentiation Narrow; cost focus NARROW LOW COST PREMIUM PRICES Pricing Competitive strategies Stuck in the middle

36. Value creation process • Land/Planning • Recognising opportunity • Acquisition • Consent • Design/Construction • Density • Layout • Product • Related commercial opportunity • Procurement • Construction • Project Management • Speed to market • Sales and marketing • Segmentation • Pricing • Sales costs • Sales speed

37. Show me the money!

38. Market pressures re space standards • Customer preference • Location, location , location • Affordability • Prices considered per bedroom (rather than per sq ft/m) • Value • …and value retention

39. Source:Design Practice and VolumeProduction in Speculative Housebuilding. Alan Hooper, Chris Nicol - 1999

40. The Way We Live (1946) Where public sector housing has been designed to lower than Parker Morris standards…the tenants have responded by consistently expressing dissatisfaction.

41. Market pressures re space standards • Customer preference • Location, location , location • Affordability • Prices considered per bedroom (rather than per sq ft/m) • Value • …and value retention • The effect of Section 106 Agreements

42. 47% affordable - or 11.8%?

43. Desiderata • Standards that are evidence based

44. DATA Looking for Data

45. Desiderata • Standards that are evidence based • … effective • … economic to operate • … checkable/enforceable

46. The Mouse Equivalent Unit 1 MEU = 0.125 sf

47. Desiderata • Standards that are evidence based • … effective • … economic to operate • … checkable/enforceable • … flexible • … but resistant to evasion