M
Matthew Scott
Property Analyst
Premium Member
As the UK continues to build well below its 220,000 target resulting in an one million shortfall by the end of 2016. It is believed an tried and tested solution to this problem is being adopted "prefabricated homes" similar to the 1940's and 1950's when 156,000 were built. Only 118,600 new homes were in 2016 and this was an 10% increase on previous year.
The Government has set its self a target of building 25,000 prefabricated homes per year upto 2020. The difference this time round being unlike past preconceptions considering them an inferior build, the modern equivalent is one that is seen to be more energy efficient and constructed using modern building techniques. A new breed of developer has entered the market concentrating on building quicker and getting new property on the market sooner. Many of the traditional builders are still dogged by time delays, stricter red tape and regulations, increasing labour and material costs, still using outdated building techniques which prolong the build time, and not always able to secure the funds required as banks are less willing to lend when considered high risk. Scarcity and the cost of acquiring development land will see houses and apartments become smaller, as developers will be forced to maximise the number of units built to combat the property shortfall and growing population.
It is predicted 19% of the population currently rent (around 4.3 million households) and home ownership is at an all time low (26% for 20-30 years old's compared to 62% in the 1960's/1970's). Owning a property was once a British past time, but with one of the youngest populations in the Europe (40.74% 25-54 and 17.99% 0-14) the prefabricated homes could offer a far more attractive option to purchase than traditional builds. The attitudes of the younger generation is that 77% believe buying a home is much tougher than their parents generations, this has been supported by the fact that first time buyers average age has gone from 29 in 2004 to 35 in 2016. As more people look to purchase property once more, this will readjust the power balance between future landlords and tenants as demand and supply levels will become more balanced compared to present levels.
https://www.linkedin.com/pulse/importance-technology-modern-day-business-matthew-scott
https://www.linkedin.com/pulse/uk-new-residential-builds-2017-recap-matthew-scott
The Government has set its self a target of building 25,000 prefabricated homes per year upto 2020. The difference this time round being unlike past preconceptions considering them an inferior build, the modern equivalent is one that is seen to be more energy efficient and constructed using modern building techniques. A new breed of developer has entered the market concentrating on building quicker and getting new property on the market sooner. Many of the traditional builders are still dogged by time delays, stricter red tape and regulations, increasing labour and material costs, still using outdated building techniques which prolong the build time, and not always able to secure the funds required as banks are less willing to lend when considered high risk. Scarcity and the cost of acquiring development land will see houses and apartments become smaller, as developers will be forced to maximise the number of units built to combat the property shortfall and growing population.
It is predicted 19% of the population currently rent (around 4.3 million households) and home ownership is at an all time low (26% for 20-30 years old's compared to 62% in the 1960's/1970's). Owning a property was once a British past time, but with one of the youngest populations in the Europe (40.74% 25-54 and 17.99% 0-14) the prefabricated homes could offer a far more attractive option to purchase than traditional builds. The attitudes of the younger generation is that 77% believe buying a home is much tougher than their parents generations, this has been supported by the fact that first time buyers average age has gone from 29 in 2004 to 35 in 2016. As more people look to purchase property once more, this will readjust the power balance between future landlords and tenants as demand and supply levels will become more balanced compared to present levels.
https://www.linkedin.com/pulse/importance-technology-modern-day-business-matthew-scott
https://www.linkedin.com/pulse/uk-new-residential-builds-2017-recap-matthew-scott
