With a market value of USD 360.27 billion in 2024 and projected to reach USD 476.46 billion by 2029, the UK residential real estate market is expanding. High demand and growing housing costs, particularly in large cities, are to blame for this expansion. The amount of new dwellings being built has significantly changed since the COVID-19 epidemic, demonstrating the market’s adaptability. Mortgages account for the majority of property ownership in the UK (65.2% of households) and the housing industry is thriving.
In order to construct new homes, developers adhere to a set process that begins with site acquisition and planning and continues through design, building, and marketing. These actions are described in this article along with how they contribute to the UK’s housing crisis and increase the number of reasonably priced homes.
Key Takeaways
- Developers start by identifying high-demand areas, considering land prices, economic development, and existing property markets.
- Securing suitable land is challenging, with distinctions between brownfield (previously built on) and greenfield (untouched) sites impacting planning permission.
- Detailed blueprints are created, adhering to building regulations and ensuring minimal impact on existing communities and wildlife.
- Construction teams bring plans to life, sourcing materials, building structural elements, fitting interiors, and ensuring homes meet market readiness standards.
- Developers manage marketing through show homes, marketing suites, and online listings to attract potential buyers.
Housing Development Process in the UK
Planning and strategy
The first step is to assess where housing is needed the most. This is generally in or around major population and economic hubs, where property demand is the highest. The majority of buyers are in employment and so it makes sense to build new builds where people can live and work.
Other factors that developers must consider include land prices, economic development plans and existing property markets.
Securing land
Once target areas have been outlined, finding appropriate land to buy is next. It’s easier said than done because finding owners willing to sell can be tricky. The plot needs to be big enough to make the venture profitable but also build houses that meet building codes.
An important distinction is between brownfield and greenfield sites. Brownfield plots have been built on previously, although many are now abandoned, so these are easier to gain planning permission for because local councils want them to be invested in.
Greenfield land hasn’t been built on before and is usually untouched. There is more resistance to building on these plots because housing developments are likely to detract from the nature already there.
Design and planning permission
Once land and planning permission has been secured, the design phase begins. Blueprints need to be precise to fit within the parameters of the plot. Every detail must be prepared, down to electrical systems mapped out with electrical design software, allowing for the development homes to be connected to the grid and individually supplied with electricity throughout their rooms.
Building regulations will dictate the standards builders need to work to, including the infrastructure and energy efficiency of homes. Housing developments are also required to fit in with the existing community surrounding them – this means limiting impacts on wildlife and residents.
Construction
Plans can then be brought to life by construction teams and contractors. Materials need to be sourced and foundations laid to provide a secure base. Structural elements like walls and roofing are constructed first, then windows and doors are added to seal houses. Interiors are then fitted and final inspections and amendments are made to ensure the house is market ready.
Marketing and sales
Housing developers usually control their own marketing and sales channels. Show homes and marketing suites are popular methods to give prospective buyers a taste of what they could get. Listings are typically created and many customers find them by searching for new build homes or developments online.
Application Process
Landowners and developers must navigate the planning application process when working on housing projects. These projects, which can be minor or major, involve different levels of engagement from planning officers, committees, and the public. They start with optional pre-application discussions with local authorities and then submit planning applications. The community provides feedback, and statutory consultations take place, while planning officers make recommendations based on national and local policies. Planning officers handle minor applications, but major ones may go to a Planning Committee and can be appealed to the Secretary of State. Understanding these steps is crucial for obtaining planning permission.
Conclusion
The process of developing new housing in UK is a multifaceted one that starts with strategic planning and land purchase, then moves on to careful design and obtaining planning permits. After that, construction teams take these blueprints and turn them into real houses, making sure they adhere to all local codes and requirements. Lastly, in order to draw in customers, developers use effective marketing and sales techniques. This procedure is essential for resolving the housing crisis in the UK and satisfying the strong demand for reasonably priced homes, despite its intricacies and difficulties.
Frequently Asked Questions
How do developers decide where to build new homes?
Developers assess high-demand areas, considering factors like land prices, economic development plans, and existing property markets.
What challenges do developers face in securing land for new housing projects?
Developers often struggle to find owners willing to sell and need to navigate planning permissions, especially for brownfield and greenfield sites.
What is the difference between brownfield and greenfield sites?
Brownfield sites have been previously built on and are often easier to get planning permission for, while greenfield sites are untouched and face more resistance due to environmental concerns.
What are some common issues addressed during pre-application discussions with local authorities?
Pre-application discussions often address site suitability, potential planning issues, environmental impacts, and alignment with local and national policies.
What strategies do developers use to market and sell new homes?
Developers use show homes, marketing suites, and online listings to attract potential buyers and give them a taste of what the new builds offer.
