I’ll be very interested to see how the £39billion will be used in social housing. When I started my career, working as. trainee QS for Rice & Son in Brighton they built a lot of council accommodation. Sites in Hollingdean, Kemp Town, Moulsecoomb and central Brighton were all built on Council land directly for and funded by Brighton Borough Council. The standard of building was high and all the houses / flats are still in occupation. Now they are talking about taking bids for the social housing developments with direct government funding. Will this mean that the government will be the client with a government body of architects, engineers, building control and surveyors etc overseeing and running individual projects, employing building contractors who have made a successful bid after the government has acquired suitable sites? I don’t think so. Where will the land come from? If it’s land already owned by developers they will want the market price as if it were for their own private developments. One of the reasons Council housing dried up is because local authorities sold their own land banks to developers ending their source of “cheap” land. If the government is just going to ask developers to build social housing on their own land banks, the bids will include the full commercial value of the land together with cost of construction with a mark up and the management company costs. The standard of new builds is already appalling as sub-contractors are paid bottom dollar and so cost cut where they can. Ideally it would great to return to Local Authority housing, but I can’t see that happening, meaning that homes will be built but not in the numbers or standards that they would’ve in the past for an equivalent budget.
It’s an interesting one and I wish Reeves had spent more time explaining what on the face of it seems like a really good move, rather than spend most of her time spinning and politicking. Consequently I don’t know whether this is will move the dial or not.
Any development of size currently has to provide 30% social housing. Developments are master planned to include this by the landowner before going to the market. Thus the sale value reflects this. So the land cost is not picked up by government.
Developers have to build all houses to a min spec but build some to a higher one to sell for a higher price. Inevitably, social housing is built to the lowest spec. This is an area that could be improved by the new funding allocation.
Developers also try and put social housing in the least valuable location (eg against a major road or adjacent to an industrial estate). This should be prevented by the planning authority without cost to the gov.
So what is this £34 billion going to do?