Space standards and market pressure
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Transcript of Space standards and market pressure
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Space standards and market pressure
Paul Morrell, Deputy Chair, CABE
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Very nice – but is there room to swing a cat?
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Comparison of design occupancies with Parker Morris recommendations
Source: Housing Association Standards, Davis Langdon for the DFoE, 1993
sq m GFA/person
Designoccupancy(persons)
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Dwelling Characteristic HA Private Diff (%)
type
Flats bedroom area (sq m) 13.00 15.00 15.40
nr of bedrooms 1.31 1.54
average bedroom area 9.90 9.70 -2.00
design occupancy 2.39 2.75
bedroom area per person 5.40 5.50 1.90
Terraced bedroom area (sq m) 20.00 19.00 -5.00
houses nr of bedrooms 2.03 2.37
average bedroom area 9.90 8.00 -19.20
design occupancy 3.42 3.80
bedroom area per person 5.90 5.00 -15.30
Semi- bedroom area (sq m) 25.00 22.00 -12.00
detached nr of bedrooms 2.56 2.61
houses average bedroom area 9.80 8.40 -15.30
design occupancy 4.39 4.17
bedroom area per person 5.70 5.30 -7.00
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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)
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Source: New Homes in the 1990’s, Karn and Sheridan, for the Joseph Rowntree Foundation, 1994
quoted in Housing Space Standards, by HATC Ltd for the GLA, 2006
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Source: Design Practice and Volume Production in Speculative Housebuilding.
Alan Hooper, Chris Nicol - 1999
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Source: Unaffordable Housing - Fables and Myths, Evans & Hartwich, The Policy Exchange, 2005
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Source: Unaffordable Housing - Fables and Myths, Evans & Hartwich, The Policy Exchange, 2005
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• 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
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The tension between quantity and quality
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Ministers must ensure that moves to make new homes environmentally-friendly do not discourage development.
The Calcutt Review,
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The tension between cost and value
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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 ??
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Volume housebuilder’s cost make-up
Sale Price 100 £178,000
Land 26.2 £46,636
Construction 51.7 £92,026
Admin/sales
9.2 £16,376
Op profit 12.9 £22,962
%
100 £175,500 (£173 psf)
19.1 £33,520*
48.0 £84,240 (£83 psf)
8.5 £14,918
24.4 £42,822
%
*£38,200 per plot for private legal completions
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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)
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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
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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
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Market pressures re space standards
• Customer preference
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Market pressures re space standards
• Customer preference
• Location, location , location
• Affordability
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Market pressures re space standards
• Customer preference
• Location, location , location
• Affordability
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Market pressures re space standards
• Customer preference
• Location, location , location
• Affordability
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Source: Savills
Mortgage repayments as a percentage of household income
Long-term average2006
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UK House Prices vs Construction costsNationwide and Davis Langdon data
0
50
100
150
200
250
300
350
Q1 1996
Q3 1996
Q1 1997
Q3 1997
Q1 1998
Q3 1998
Q1 1999
Q3 1999
Q1 2000
Q3 2000
Q1 2001
Q3 2001
Q1 2002
Q3 2002
Q1 2003
Q3 2003
Q1 2004
Q3 2004
Q1 2005
Q3 2005
Q1 2006
Q3 2006
Period
Ind
ex (
1Q 1
996=
100)
UK Average House Selling Prices Tender Prices
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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
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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
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We…aim to be the housebuilder of choice for our customers, our employees, our shareholders and for the communities in which we operate.
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Broad;costleadership
Narrow (focus);differentiation
Broad;Differentiation
Narrow;costfocus
Strategic Target
NARROW
BROAD
PREMIUMPRICES
LOWCOST
Pricing
Competitive strategies
Stuck in the middle
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•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
Value creation process
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Show me the money!
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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
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Source: Design Practice and Volume Production in Speculative Housebuilding. Alan Hooper, Chris Nicol - 1999
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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.
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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
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47% affordable - or 11.8%?
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Desiderata
• Standards that are evidence based
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DATA
Looking for Data
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Desiderata
• Standards that are evidence based
• … effective
• … economic to operate
• … checkable/enforceable
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The Mouse Equivalent Unit
Units
Mouse 1
Small Birds 2
Rat 4
Pigeon 4
Hamster 3
Guinea Pig 5
Chicken 10
Rabbit 16
Cat 32
Dog 50
Monkey 50
1 MEU = 0.125 sf
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Desiderata
• Standards that are evidence based
• … effective
• … economic to operate
• … checkable/enforceable
• … flexible
• … but resistant to evasion
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