How smart planning and clever design can deliver more homes
Labour is in and across the industry, we’re hoping that the Starmer government has got the moxie to do what 14 years of the Tories couldn’t.
It’s no secret, housing provision is a shambles and we’re not building nearly enough. That’s not always been the case. In decades past, we were able to build good quality homes at a much higher rate and to a superior quality.
In the present day, we’ve fallen way off the boil, floundering to deliver anything near what we need. This is a huge challenge of the incumbent labour government and one that they’ve steadfastly taken on in their manifesto. The question that desperately needs an answer is how do we get back to the productivity of the past?
Labour have already set out their stall in the king’s speech. Planning reform is coming but the details are still somewhat hazy when it comes to what those changes are.
While we’re waiting for that full account, our own Phil Cooper sat down with Anna Relph, Director at Turley and Julia Hatmaker from Place North West to talk about the housing crisis, the planning system and how smart planning and clever design can unlock sites in a difficult market.
This article is a round-up of that conversation to accompany the Place North West feature we recorded with Julia and the team. Listen to that conversation, “How smart design and planning can solve the housing crisis”, here.
The decline of SME developers in the housing market
SME developers have played a huge role in the provision of UK homes across the decades. As time has gone on their role in the UK’s provision of houses has dwindled, however.
In 1988, SMEs were responsible for building 39% of new homes in England. By 2020, this contribution had dropped to just 10%. This decline has had a profound impact on the overall housing supply, as SMEs traditionally play a crucial role in delivering diverse housing options and filling gaps left by larger developers.
Doing some quick and dirty maths, if SMEs continued delivering 39% of the housing supply as they did in 1988, we would be much closer to the magical 300,000 number.
So why the big decline?
For one, the land market has become highly competitive, particularly for the small plots typically targeted by SMEs. This competition drives up land prices, making it difficult for smaller builders to acquire sites at a cost that allows for profitable development.
What’s more, the planning system has become increasingly complex, slow, and expensive to navigate. These factors create significant financial and operational barriers for SMEs, reducing their capacity to bring projects to market.
How can we help SME developers get back in the game?
One promising approach to help SME developers overcome these challenges involves leveraging economies of scale and standardisation in the construction process. By adopting a design framework that standardises certain elements of housing, such as bathrooms and staircases, SMEs can achieve efficiencies similar to those enjoyed by larger builders.
This standardisation not only reduces costs but also simplifies procurement and construction processes, enabling SMEs to compete more effectively.
Not to toot our own horn, but a great example of such an approach is our Skeleton House concept. Using the Skeleton House system, you get a suite of standardised components that can be assembled in various configurations to create bespoke homes that can be tailored to the unique properties of the site.
This model allows SME developers to maintain a unique and flexible design approach while benefiting from the cost savings and efficiencies of standardisation.
The role of planning reforms
The current planning system is a huge obstacle for all developers, particularly for those in the SME category. Its complexity, high costs and the time it takes to secure approvals all play their part in the diminishing role of SME developers in the industry.
With genuine reform, that trajectory has a good chance of changing. In particular, simplification for smaller urban sites would go a long way. This could include, reducing the amount of documentation required or streamlining the approval processes for projects that meet specific criteria. Ultimately, it’s about making the process easier and less costly to achieve permission.
When it comes to steps the developers themselves can take, a social value approach can go a long way. Engagement with local communities and stakeholders early in the planning process can offer insights into local needs and preferences. This in turn will help developers to design the project to align with the local authority’s social and economic goals while also enjoying broad community support.
Integrating data into design and planning
As an architect, I want all the data I can get my hands on when it comes to designing a new project. That’s particularly true when designing for large residential developments. The more information I have in my hands, the better prepared I am to deliver something sensitive to the needs of the community, market trends and demographic shifts.
The same is undoubtedly true for SME developers. Market research can inform developers about the types of housing that are in demand, preferred price points and the features that are attractive to potential buyers. Demographic data will identify the housing needs of different population groups, like families, young professionals or the elderly.
All of this is vital to pitching houses at the right quality and value.
Addressing attitudes to density
The housing crisis isn’t just a case of market dynamics or the diminishing role of SME developers in house building. A deeper, more structural issue is at play and that’s the emphasis on home ownership and the use of property as a primary means of wealth accumulation. The focus on building suburban-style homes by its nature is not the most efficient or sustainable use of land.
Across the industry, there’s a growing recognition of the need for medium-density housing – a middle ground between high-density urban apartments and low-density suburban homes. Medium density will provide more uniters per land area while still offering many of the amenities residents value, like private outdoor space.
It's common in other European countries but has been much less prevalent in the UK. A great example of it can be found at x.
Embracing medium-density housing would have a strong effect, particularly in urban brownfield settings where land is scarce and expensive.
Moving forward: Recommendations for the future
So problem solved? Not quite, the scale of the problem facing us is large and the industry (and hopefully the new government) is aware of just how large the challenge is. That said, there’s plenty that we can do in the here and now to get started in the right direction.
For our part, we think the answer is going to require a multifaceted approach that includes both immediate and long-term strategies. These include:
Encouraging innovation and risk-taking: The housing sector, particularly SMEs, should be encouraged to explore innovative housing typologies and development models. This includes experimenting with medium-density housing and other new forms of development that can provide more efficient and sustainable housing solutions.
Engage with the public: Building public support for new housing formats is crucial. This involves educating people about the benefits of different housing types and involving them in the planning process. By addressing public concerns and preferences, developers can create projects that are more likely to be accepted and successful.
Leverage public sector land: Public sector entities, such as Homes England, can play a key role in setting new standards in housing development. By prioritising innovative and high-quality housing solutions on public sector land, these entities can serve as a model for the private sector and help drive broader changes in the housing market.
Implement and monitor planning reforms: Continued efforts are needed to simplify and streamline the planning process, particularly for smaller developers. This includes implementing planning reforms that reduce costs and administrative burdens whilst ensuring that these reforms are effectively monitored and adapted as needed.
Promote Strategic Planning Frameworks: Strategic planning frameworks, like "Places for Everyone," should be promoted and supported at both the regional and national levels. These frameworks provide a coordinated approach to development that can help balance housing supply and demand, promote sustainable growth, and ensure that development benefits are widely shared.
Looking to the future
We’re entering an exciting period of change. That’s what we’re being led to believe by the new government anyway.
Real, lasting change is going to require a concerted effort across the industry, different sectors and levels of government but it’s all got to be worth it.
We’re waiting on bated breath to hear the details of Labour’s plans and are cautiously optimistic about what’s to come. While there’s still a lot of uncertainty, there’s one foundational principle you lean on.
Hope Architects and the rest of the industry are ready and waiting to jump in, feet first to a new era of house building.
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Don’t forget, you can catch all of the above in video format in our latest Place North West feature, “How smart design and planning can solve the housing crisis”.