Author: Simon Barrow

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Lessons learned from Australia: maximising the economic benefits of the £39bn Social and Affordable Homes Programme

The New Affordable Homes Programme

Announced in June 2025, the new Affordable Homes Programme replaces the previous scheme with a landmark £39 billion investment to deliver around 300,000 new social and affordable homes over the next decade. At least 60%, or approximately 180,000 homes will be for social rent, linked to local incomes. This represents the largest long-term investment in social and affordable housing in over 50 years.

Maximising Economic Benefits

Given the scale and importance of this programme, there is significant potential to drive economic growth and ensure strong value for public money. Drawing on my experience with a similar initiative in Australia, I’ve highlighted key lessons that could inform the UK Government’s approach to maximising economic impact.

Lessons Learned – The Australian Experience

In 2009, the Australian Government launched a A$5.25 billion Social Housing Initiative as part of its response to the global financial crisis. Over three years, it delivered approximately 20,000 new homes and refurbished 70,000, stimulating the economy, creating jobs, and helping Australia avoid the recession that impacted most Western nations.

Based on that experience, four key areas offer valuable insights for the UK’s housing programme:

  1. Capacity Building
  2. Strengthening the Supply Chain
  3. Streamlining Planning Processes
  4. Maximising Value through Modern Methods of Construction (MMC)
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Key Recommendations to Maximise Economic Impact

1. Capacity Building

In Australia, government housing agencies needed external support to meet the demands of rapid programme expansion. In New South Wales, delivery was led by Housing NSW, where I observed that many new contractors and consultants lacked public housing sector experience. This led to steep learning curves, inconsistent delivery, and capability gaps.

Recommendation:
Introduce a phased integration of non-residential contractors and consultants, such as those experienced in student housing, military accommodation, or aged care accommodation sectors via pilot projects. This gradual approach will help scale up industry capacity effectively. A centralised Project Management Office (PMO) led by Homes England and staffed with housing specialists should coordinate delivery, support local authorities, share knowledge, and manage nationwide quality.

By expanding the initiative so that it involves the wider industry and not just the current public house building niche operators, public money is spread more evenly and further within the economy with minimal waste if integration is phased with PMO oversite.

2. Strengthening the Supply Chain

Australia’s programme faced delays and cost pressures due to shortages in materials such as insulation and bricks. Sourcing imported materials added further complexity and with limited or non-existent local content policies in place many products were imported i.e. plaster board from China.

Recommendation:
Develop a nationwide procurement strategy with flexible frameworks that support strategic bulk purchasing and distribution especially of Modern Methods of Construction (MMC) components. Development corporations or other delivery agencies could manage aggregated orders using bulk buy purchasing supply, achieving value for money while ensuring consistent supply.

Standardised yet adaptable design guidelines should prioritise UK manufactured materials, avoiding international supply chain risks and boosting local economic multipliers.

3. Streamlining Planning

To meet deadlines, some Australian states fast-tracked planning, but faced a backlash for reduced community input especially in established neighbourhoods areas. In some cases, developments proceeded that wouldn’t have under regular planning regulations.

Recommendation:
Pilot the UK’s recent planning reforms in established neighbourhoods, particularly on infill or ‘pocket’ sites. Retaining standard planning processes in sensitive areas can preserve public trust and reduce opposition. Community backing is vital, as developing within existing urban areas often leverages current infrastructure more efficiently than building on new sites.

While fast-track approvals may suit new, undeveloped locations, these often require major infrastructure investments (e.g., roads, schools), which can delay delivery and increase costs.

According to the IMF Paper Construction Planning Reforms for Growth and Investment published in 2024 the UK’s complex planning regulations can add 10% to any development costs. Therefore, any strategy to reduce costs for planning will allow more public funding to be spent on building more homes.

4. Maximising Value Through Modern Methods of Construction

Although MMC was adopted in Australia’s programme, its benefits were not fully realised due to the short-term nature of the initiative and lack of coordinated investment in design and manufacturing infrastructure.

Recommendation:
The UK’s 10-year Affordable Homes Programme offers a major opportunity to realise MMC’s potential. Unlike Australia’s 3-year initiative, the UK version can support a stable, regionally distributed pipeline of products over a longer period, giving manufacturers confidence to invest.

Past MMC challenges including manufacturer insolvencies stem largely from volume inconsistency and weak supply continuity. A national MMC strategy is essential, building on Homes England’s existing experience with MMC through its pilot schemes, funding models, and research.

This strategy should include clear commitments to long-term supply pipelines across regions. Strong coordination between planning authorities, housing providers, and MMC manufacturers is critical to unlocking sector growth and ensuring resilience.

According to a 2024 Report by Constructing Excellence/ BRE Benefits of Modern Methods of Construction in Housing costs could fall by a third if demand is grown and the sector scales up.

Conclusion

In delivering 300,000 new social and affordable homes in the next decade the Affordable Homes Programme offers the UK an opportunity to tackle housing shortages while simultaneously stimulating economic growth, job creation, and industrial innovation. However, to maximise the economic benefits, the government must act strategically in building capacity across the industry, strengthening local supply chains, streamline planning, and embracing MMC.

By learning from international examples and implementing structured, scalable policies, the UK can ensure that this investment delivers not only homes but long-term national prosperity.

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Building  1.5m homes with a skills shortage: strategies to alleviate labour demand

Image licensed under pixabay
Image licensed under pixabay

The Skills Shortage

As outlined in ‘A Plan to Boost Skills in the Construction Industry’, an additional 251,500 workers will be needed to meet UK construction output targets by 2028. However, the Construction Industry Training Board (CITB) reports that more workers are leaving the industry than joining it, according to the ‘Skills Construction Needs Labour Market Intelligence Report 2024-2028’.

Even with proposed training reforms, it will take several years for apprentices to become qualified and gain the necessary experience. To reduce reliance on the Immigration Skills List for labour, the government must adopt strategies that lessen the demand for skilled workers within its nationwide mass homebuilding programme.

Reducing Labour Demand with Modern Methods of Construction

Benefits of Modern Methods of Construction (MMC)

Modern methods of construction (MMC) prioritise off-site techniques, such as mass production and factory assembly, offering an alternative to traditional on-site building. This approach is especially effective for large-scale residential projects, reducing the need for skilled on-site labour.

Key MMC technologies include:

  • Modular construction: Factory-made units or components (e.g., kitchens, bathrooms).
  • Flat panel construction: Precast reinforced concrete panels produced off-site.
  • Timber frame construction: Timber components assembled or partially constructed off-site.
  • Double wall construction: Factory-made panels used to contain on-site concrete pours.
  • Sub-assembly components: Specific components, such as dormer windows, made off-site.

MMC methods require fewer highly skilled trades than traditional methods, making them effective at reducing labour demand. While specific figures may vary, MMC can cut on-site labour by up to 70%, reduce construction costs by 20-40%, and shorten build times by 20-60%, according to ‘The Benefits of Modern Methods of Construction in Housing – Performance Data and Case Studies by Construction Excellence Report’.

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Strategy for Advancing the MMC Sector

  • Enhance UK capacity: Strengthen existing MMC providers or create new ones to serve local authorities, social housing providers, and development corporations. Establish alternative procurement strategies before starting projects.
  • Collaboration for design development: Partner with MMC providers to create prototypes for asset types such as low-rise apartments and schools. Ensure designs are cost-effective, transportable, and widely available. Manufacturing facilities should be in urban centres for easy access to labour and transportation but spread across the country to reduce inefficiencies.
  • Promote local production: Support local production using domestic materials. This “local content” approach stimulates the economy by creating jobs and supporting the broader manufacturing chain.
  • Ensure steady demand: The stop-start nature of past homebuilding projects has hindered the MMC sector. The government could address this by mandating MMC in a nationwide mass homebuilding programme, ensuring consistent production.
  • Government incentives: Provide financial support or incentives for collaborations between industry bodies, academia, and private developers to prototype and refine MMC designs, ensuring only high-quality products are mass-produced.

Despite government efforts several Category 1 MMC companies collapsed in 2022 and 2023 and significant barriers remain in the sector, including risk aversion from warranty providers, insurance companies, and unclear building regulations.

In 2021, Homes England launched a multi-year research project to assess MMC’s impact on the housing sector. The government should publish an interim report to share lessons learned and propose actionable strategies.

Key Initiatives could include:

  • Capacity review: Strengthen MMC providers to support local authorities and housing providers. Develop alternative procurement strategies before projects begin.
  • Prototype collaboration: Work with providers to develop cost-effective, transportable prototypes for assets like apartments and schools. Encourage partnerships to ensure high-quality designs.
  • Local production: Support domestic manufacturing to stimulate the economy and create jobs.
  • Steady demand: Mandate MMC in government-backed mass housing projects to ensure consistent demand and supply.

Additional Strategies to Reducing Labour Demand

Other Strategies should also be explored that could reduce Labour demand such as:

Self Build or Custom Build Homes

Self-building allows individuals to construct their own homes, often with the help of small contractors and minimal skilled labour, especially when using kit or modular homes. This off-site prefabrication, a form of MMC, offers the same labour-saving advantages.

The government can support self-builders by requiring all local authorities and development corporations to offer serviced building plots for sale. Additionally, reviewing UK manufacturers and implementing initiatives could boost supply, design variety, local content, and lower costs, helping increase the current estimated 7-10% of self-built homes annually.

Utilising the Private Consultancy Sector

Engaging the UK’s leading international construction consultancies to take on a larger role can leverage their global staff to support UK projects, either through back-office operations abroad or by assigning staff to the UK.

This would enable government bodies, such as development corporations, to operate more efficiently by focusing on core competencies while outsourcing other functions to consultancies. Additionally, private consultancies bring national and international expertise, innovation, and best practices, contributing to a more dynamic involvement in projects.

Simplifying Planning

Planning reform began with the release of the revised NPPF in 2024, but supplementary policies and guidance are needed to simplify the planning system for all users.

For instance, implementing zoning and design guides could provide greater certainty for proposed developments, reducing the assessment workload on planning departments if developments comply with these standards.

Another example would be granting planning powers for new town developments to the development corporations managing them. These corporations could establish simplified planning rules, particularly if developments within the master plan require minimal local consultation or integration with the existing built environment. This would allow smaller planning teams to handle a larger volume of submissions.

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A plan to boost skills in the construction industry to deliver 1.5m homes

The Current Skills Problem

The UK construction industry has faced a longstanding skills deficit, and this is expected to worsen as it prepares for one of the largest build programs since the post-war era. Demand for construction work has risen, but there are not enough entrants to meet this demand. An estimated 24,400 newly qualified apprentices are needed each year, with subcontractor trades particularly struggling to attract young talent. According to the UK Trade Skills Index 2024, the industry needs 1,265,000 new recruits over the next decade.

An additional 251,500 workers will be required to meet UK construction output by 2028. However, more people are leaving the industry than joining it, according to the Construction Industry Training Board (CITB).

To support the ambitious goal of building 1.5 million homes, a plan to boost skills is essential. Without this, all other aspects of the strategy are at risk of failing.

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Fixing the Skills Problem with a Plan to Boost Skills

The government must collaborate with key sectors in construction to develop a Skills Plan that supports its large-scale homebuilding program. This plan should address the root causes of the skills shortage, starting with areas of consensus, including the following:

1. Engage the Younger Generation

To attract more young talent to the construction sector, employers can offer flexible working options such as job sharing, part-time hours, and better work-life balance. Expanding high-quality apprenticeships, traineeships, and upskilling initiatives will help retain a younger workforce.

A supportive approach, including positive messaging and targeted promotion on social media platforms, can also help attract young people. The government, working with the CITB, trade bodies, and unions, could establish a coordinated social media strategy to counter negative perceptions. Research from YouGov shows that 69% of adults would not consider a construction career, associating the industry with being “dirty, stressful, and unsafe.” By highlighting the sector’s digital innovations, quality engineering, new technology, and the benefits of skilled careers, these perceptions could be challenged.

Increasing initiatives like Apprenticeship Week, job fairs, and school visit programs, led by professional institutions and associations, would further engage young people. Institutes such as the Institute of Civil Engineers and the Royal Institution of Chartered Surveyors already promote high-quality professional apprenticeships, which can serve as models for other sectors.

2. Upskilling Existing Workforce

Instead of relying on migrant workers, the construction industry should focus on upskilling the existing UK workforce, particularly at the trade level. Since it takes time to train and upskill workers, it is this area that requires the most transformational change to train British workers for roles in high demand.

The CITB plays a central role in skills training, particularly for trade roles. However, it has faced criticism from industry bodies and major contractors, leading to reforms in 2017. The government’s most recent review of the CITB’s effectiveness is awaited, and any recommendations from this review should be implemented to ensure it is fit for purpose in delivering this necessary transformation.

3. Worker Retention Strategies

Employee retention in the construction industry is low for various reasons. Employers must prioritise existing employees by offering competitive benefits, wellbeing policies, and attractive remuneration packages to prevent turnover. Becoming an “Employer of Choice” means creating a supportive work environment, offering benefits and culture that attract new talent while retaining experienced workers.

This strategy should be complemented by robust training programs for graduates, supported by educational institutions. Additionally, ongoing opportunities for upskilling and staff development should be part of the retention plan.

Typical Traits of an Employer of Choice are:

  • Competitive salaries and benefits
  • Positive, supportive culture
  • Pleasant work environment
  • Opportunities for training and development
  • Feedback-driven culture
  • Trust and transparency
  • Professional growth and capacity building
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What Educators, Trainers, and Employers Need from a Plan

To support skills development, the infrastructure, including Skills Centres, Technical Colleges, and universities offering construction-related courses, needs significant expansion and funding. The government has proposed progressive plans, including the creation of a new training body, Skills England, reforms to the training levy, and updates to apprenticeships.

Given the multi-year duration of degree courses and apprenticeships, implementing these reforms urgently is critical. The government’s plan should include consultations with construction industry bodies to identify priorities and quick wins to align the education sector with the industry’s needs.

The UK’s current construction labour shortages will worsen as approximately a quarter of the workforce plans to retire in the next decade. Therefore, a steady influx of trainees is essential, regardless of the large-scale homebuilding programme.

Employers, regardless of size, need confidence in long-term workloads in specific regions to justify investing in workforce expansion and training. A successful large-scale housing programme must include strategies for coordinated housing delivery across local authorities, ensuring a steady supply over time. Additionally, responsibility for delivery should be shared across the industry, not just the homebuilding sector, spanning SMEs, larger developers, builders, suppliers, and consultants. Skills training must address the entire industry, as residential developments will also require accompanying infrastructure.

So far the industry has reacted positively to last month’s government announcement of £600m overall for:

  • 10 new technical colleges and assistance for existing colleges to offer more construction courses
  • Support for skills boot camps, support for returner and upskilling
  • Support for partnerships between colleges and construction companies to increase industry experienced teachers
  • Support for the planned new Foundation Apprenticeships, further supported with funding from the planned Growth and Skills Levy .
  • Support for industry placements in coordination with the CITB
  • Support for Construction Skills Mission Board to promote employer collaboration

We will continue to look with interest to further announcements in this area.

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How to increase housebuilding by adopting the 15-minute city

Understanding the 15-Minute City and the 20-Minute Neighbourhood

The concept of the 15-Minute City is an urban planning model where residents can access the majority of their daily necessities such as work, shopping, education, healthcare, and leisure within a 15-minute walk, bike ride, or public transit trip from their homes. This design approach aims to reduce dependence on automobiles, fostering healthier, more sustainable lifestyles and improving the overall wellbeing and quality of life for city residents.

The core idea behind the 15-Minute City is to create a human-centric environment that prioritises walking, cycling, and the use of public transportation over car use. In line with this vision, urban areas designed as 15-Minute Cities often feature abundant green spaces, bike lanes, and pedestrian-friendly walkways, rather than emphasising car-centric infrastructure. This concept is also referred to by various terms, including 20-Minute Cities, 20-Minute Neighbourhoods, or Complete Communities, all of which share a similar focus on accessibility and sustainability.

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Key Benefits of the 15-Minute City and 20-Minute Neighbourhood

The 15-Minute City and 20-Minute Neighbourhood concepts offer numerous benefits, many of which have already been realised in areas where these models have been implemented:

Reduced Reliance on Vehicles: The primary objective of the 15-Minute City is to minimise vehicle dependency by ensuring that essential amenities and services are within a short walking, biking, or transit distance. This shift not only alleviates traffic congestion but also lowers carbon emissions and promotes healthier lifestyles through increased physical activity.

Reduced Pollution: By decreasing the need for personal vehicle use, this urban planning approach contributes to lower pollution levels. Fewer vehicles on the road result in decreased traffic and congestion, improving air quality. Additionally, the reduction of noise pollution, which has been linked to various health issues such as stress, anxiety, and hearing loss, is another positive outcome.

Economic Benefits: While the 15-Minute City model is often associated with large urban centres, it is equally applicable to smaller towns and rural areas. In these settings, it can drive increased foot traffic, stimulate local commerce, and create job opportunities, thus providing a much-needed boost to local economies.

Enhanced Public Health and Wellbeing: The design of 15-Minute Cities typically incorporates more green spaces, cleaner air, and easier access to essential services, all of which contribute to a higher quality of life. These elements encourage outdoor activity, improving both physical and mental health. Additionally, the reduction of pollution and increased access to community spaces can help combat issues such as depression and loneliness.

Improved Social Connectivity: The 15-Minute City model fosters more connected communities. With amenities and services located within close proximity, residents can more easily engage with each other, fostering stronger social bonds and enhancing opportunities for social interaction, entertainment, and community engagement.

Controversies Surrounding the 15-Minute City and 20-Minute Neighbourhood

Despite its many advantages, the 15-Minute City concept has faced criticism, particularly from those who raise concerns about potential restrictions on personal mobility. Some detractors argue that these models could lead to overly controlled or confined communities, limiting freedom of movement.

However, this concern is often mitigated when such developments are supported by robust public transit systems. The best examples of well-planned 15-Minute Cities invariably have public transportation facilitates to travel both within and beyond the designated area, complementing the use of private cars. Rather than banning car usage, the model aims to reduce reliance on them, offering residents greater flexibility. Public transit provides increased mobility for those who cannot drive or afford a car, ultimately expanding their options for travel and enhancing overall freedom of movement.

Incorporating Public Transit into the 15 minute City Urban Planning Concept

The role of Transit-Oriented Developments (TODs) in facilitating new housing has been highlighted in a previous article ‘Building homes connected to infrastructure, the benefits of Transit Oriented Developments’. Like 15-Minute Cities, TODs are inherently designed as high-density, mixed-use communities. By integrating TOD design principles into the 15-Minute City and 20-Minute Neighbourhood frameworks, and incorporating housing as a central element, these urban models can play a significant role in addressing the growing demand for new housing.

Adopting the design principles of the 15-Minute City, 20-Minute Neighbourhood, and TODs allows for sustainable urban developments that can support higher population densities. This approach simultaneously enhances the effectiveness of public transit systems. A larger residential population located near transit hubs creates a greater passenger base, which, in turn, helps justify further investment in transit infrastructure. This creates a well-connected, sustainable urban environment that meets both housing and mobility needs.

What can be done to Promote this Concept

To minimise the use of undeveloped land and avoid the high costs associated with new public transit systems or extensive road construction, the development of high-density, transit-connected urban hubs is essential. Achieving the ambitious housing target of 1.5 million homes of varying types and tenures within a relatively short time frame will require such urban hubs.

By drawing on best practices from cities around the world with successful examples of TOD and 15-Minute City designs, the government should provide clear design guidance and principles. These guidelines will help local planning authorities (LPAs) and Development Corporations develop both new and existing urban hubs, while addressing potential opposition to these developments.

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Building homes connected to infrastructure, the benefits of Transit Oriented Developments

What is a Transit Oriented Development

A Transit Oriented Development (TOD) is an urban planning approach that focuses on creating high-density, mixed-use communities centred around public transit hubs.

At its core, TOD integrates transport infrastructure, such as rail, bus, or metro stations, with surrounding land use to create accessible, liveable communities that are well-connected by public transit and complemented by high-quality public spaces.

Over the past few decades, TOD projects have been implemented across the globe, showcasing the concept’s broad appeal and effectiveness in reshaping urban landscapes.

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Key Benefits of TOD:

  • Environmental Sustainability: TODs promote public transit use and reduce car dependency, which leads to lower greenhouse gas emissions and a reduced overall environmental footprint.
  • Reduced Traffic Congestion: By encouraging the use of public transport, TODs alleviate road congestion, contributing to more efficient urban mobility.
  • Economic Development: TODs stimulate local economies by fostering vibrant communities, increasing foot traffic for businesses, generating employment opportunities, and potentially enhancing property values.
  • Improved Quality of Life: Residents of TOD communities enjoy reduced commute times, convenient access to amenities, and a stronger sense of community, contributing to a higher quality of life.
  • Placemaking: Through the creation of pedestrian-friendly pathways, non-vehicular routes, and public plazas, TODs prioritize walkability and cultivate dynamic public spaces that enhance the sense of place and community engagement.

Overall, TODs represent a forward-thinking approach to urban development that balances the needs of transport, environmental sustainability, and community wellbeing.

Types of Transit Oriented Developments that will boost Homebuilding

TODs offer a powerful approach to addressing the dual challenges of providing new housing and fostering sustainable urban growth. When considering TODs for housing development, it is essential to examine them at two distinct levels:

1. New Transit Hubs
TODs centered around new transit hubs are typically long-term projects that involve complex planning, substantial investment, and public-private collaboration. In the UK, for instance, the Crossrail project has demonstrated the potential for such developments to transform urban landscapes, both in terms of transit infrastructure and land value.

These types of TODs leverage the increased land value generated by new transit infrastructure, with private developers playing a key role in financing the project over the long term. Although these developments are generally not “quick wins,” they are integral to the delivery of new residential stock and the broader vision of sustainable urban growth.

2. Existing Transit Hubs
TODs developed over and around existing transit hubs offer an opportunity for more immediate impact on residential development. Given the existing infrastructure, these developments can be realised more quickly, at a lower cost, and with fewer challenges compared to new projects centered on greenfield sites. Expanding and enhancing local infrastructure within established areas is typically easier and more cost-effective than building these services from scratch in new neighborhoods.

Furthermore, the higher density typical of TODs allow for more efficient use of land, offering private developers higher rates of return. This enables the leveraging of additional funding for public and social infrastructure improvements, including social housing.

In both cases, TODs serve as a crucial tool for boosting residential housing supply, promoting public transit use, and driving urban regeneration. However, by focusing on the existing transit hub type it is likely that a real difference can be made in a shorter timeframe by potentially utlilising the thousands of transit hubs all over the country.

What can be done to Enable Transit Oriented Developments around Existing Transit Hubs

1. Over-Station Development

One of the most promising forms of TOD is the redevelopment of existing buildings or the construction of new developments directly above transit hubs, known as over-station development. While this approach maximizes land use in high-demand areas, it often comes with high costs, potential disruptions, and safety concerns, particularly if the transit hub must remain operational during construction.

In some cases, the potential value of land created by developing space over transit hubs justifies the complexities involved. A notable example of such a project is the ongoing development at Euston Station, which demonstrates the feasibility of over-station TODs in major transit centres.

2. Land Acquisition and Cost

Redeveloping land or building new developments around transit hubs in densely populated or high-cost urban areas presents significant financial challenges. The cost of land and construction in these areas can be prohibitively high, limiting the scope for TODs. However, Local Planning Authorities (LPAs) can mitigate this by changing zoning regulations to allow for greater density and height in the areas surrounding transit hubs.

In turn, this could help create a market for new residential and commercial properties in areas that are currently underutilised, driving both housing supply and economic growth.

3. Integration with Existing Transit Infrastructure

For TODs to be successful, they must be integrated with the existing transit infrastructure. This often requires significant upgrades to transit facilities or adjustments to accommodate the increased demand generated by higher-density developments. However, such upgrades can be costly and complex.

Through public-private partnerships, developers can help fund necessary improvements to transit infrastructure as part of the overall TOD planning process. By using ‘planning gain’ to ensure that the financial benefits of TODs are reinvested in the public transit system, they can enhance both the transport experience for commuters and the overall effectiveness of the transit network.

4. Equity Concerns and Gentrification

While TODs can bring numerous benefits, they also present the risk of gentrification, where rising demand for properties near transit hubs drives up housing costs, potentially displacing low-income residents. To mitigate this, LPAs can mandate the inclusion of social housing as part of TOD projects. By setting clear targets for affordable housing and ensuring that developments incorporate mixed-tenure communities, the negative impacts of gentrification can be managed.

5. Overcoming Knowledge Gaps

Local Planning Authorities (LPAs) often face barriers due to a lack of expertise in successfully implementing TODs. To address this, government could develop a Best Practice Toolkit for LPAs. This resource would provide planning guidance, showcase successful case studies, and offer insights into navigating public-private partnerships, funding mechanisms, and land value capture strategies.

Additionally, LPAs and LTAs can establish their own development vehicles to spearhead TOD initiatives. A prime example of this is Transport for London’s Transit Trading Limited Properties, which has accelerated the adoption of TOD in the UK by directly managing land development around Transit hubs.

Conclusion

Enabling Transit-Oriented Developments offers a compelling solution to urban housing shortages while promoting sustainable growth and reducing car dependency. By addressing key challenges such as land acquisition, infrastructure integration, and equity concerns, and by providing the necessary tools and expertise to LPAs, TODs can become a cornerstone of future urban planning.

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A plan to boost construction industry capacity to deliver 1.5 million homes

Image by abakumada licensed by pixabay

Moving from such a low base in home building to achieve ambitious targets in a relatively short time frame will create challenges in every aspect of how the construction industry operates.

The government must engage with all the key sectors of the construction industry that will have a role in delivering their planned large-scale home building programme and develop a capacity boosting plan. Also, this plan’s success will rely on its alignment with a training and skills capacity boosting initiative

Any proposed capacity boosting plan should include two key aspects:

  • Delivery capacity building – How to structure the overall design and building of homes, neighbourhoods and towns.
  • Organisation capacity building – How to structure the development corporations and other entities charged with developing homes, neighbourhoods and towns.
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Delivery Capacity Building

How Development Corporations should be set up

To facilitate the large-scale home building programme, local development corporations will need to be created from new, as happened with the creation of the post-war New Towns. The effort and time to build such organisations simultaneously  should not be underestimated,  and a plan to adopt a ‘lean model’ corporate template set-up should be established.

In simple terms, a ‘lean model’ would mean that development corporations would outsource a sizeable amount of their workload to private sector specialist consultancies, allowing them to focus on their core mission.

Engaging consultancies could  leverage their existing skills base and know-how, and share responsibility for capacity building to the private sector, spreading risks associated with development.. This approach would enable more efficient and accelerated project completions.

How Master Planned Developments should be built out

To build at scale, larger master plan developments will be needed. Whether these will be development corporations or other entities such as housing associations, councils or private developers, an ‘enabler’ approach involving sub-developers for various asset types should be used.

An ‘enabler’ approach would involve the master developer selling on parts of an overall master plan development to sub-developers while still maintaining a level of control.

This will allow for the sharing of the delivery burden and development risks allowing the overall delivery to be expedited while still maintaining overall master developer control.

The key to maintaining overall control of what is designed and built is for the master developer to have a comprehensive design guide for all parties involved to adhere to. A comprehensive design guide provides criteria specific for private sector consultants, construction contractors and sub-developers to work to while still allowing for innovation and a broader range of products and ideas from these other partners.

Some of the master plan developments will be new towns by definition and will be developed in accordance with the planned ‘New Towns Code’.

How Statutory Authorities Involvement should be streamlined

Local authority involvement via planning and building control departments is a critical component of delivering a mass home building programme so it is essential that there is an increase in funding and staffing levels. This was acknowledged in the last budget with a GBP £500m boost in funding exactly for this purpose.

In addition, there should be a plan to significantly increase the volume of developments that can be processed by consolidating local authority workloads. This can be achieved if the current reform of the planning regulations simplifies planning by zoning or other similar proposals.

This entails a designated area being provided with a set of development criteria such as land usage, type, height, set back dimensions, etc. If developments are designed to meet these there should be no need for the local planning authority to assess each development individually.

Why its essential to incorporate Modern Methods of Construction (MMC)

Embracing all of the current Modern Methods of Construction (MMC) on a substantial scale will also enhance delivery capacity by increasing build speed, reducing costs and reducing the need for skilled labour on site. The offsite factory mass production of building components or partially assembled units has mostly worked in the past where a large volume of residential, educational, medical or other assets have been needed.

MMC has faced some difficulties in recent years, partly due to a lack of a steady product supply line, with innovation and choice not at the level of countries where this is more prevalent. The large-scale build program will resolve the supply issue, but the government’s plan should be to reinvigorate the sector with some expertise from countries where MMC is better developed such as Germany. This could be done by creating a centre of excellence or sponsoring partnership L&D programmes for UK companies to learn from foreign companies.

The plan should include ‘modular kit homes’ for self-builds by individuals, small builders or developers. While self-builds would not contribute to public housing, the UK has much potential to develop this sector, offering direct competition to the professional home building developer sector as well as adding overall housing supply.

Organisational Capacity Building

Making Development Corporations centers of delivery excellence and best practice

As noted earlier,’ establishing a wave of new development corporations will be a feat in itself, and the know-how and skillsets required for this in the current market will be limited. In addition to the ‘lean model’ , to attract the best skilled individual people in a competitive market, these new corporations should prioritise becoming ’employers of choice.’

Being an ‘employer of choice’ by having a work environment, benefits and culture that attracts the best new joiners and retains existing employees should be complemented by a substantial training programme for graduates. This should be supported by educational and professional institutions, to cultivate a high ratio of trainees across various business roles. Opportunities for upskilling and training of staff in general should be part of this, and the development corporations should aim to set the benchmark in the industry.

How to effectively monitor and control a large-scale home building programme while its being delivered by many organisations

As part of building capacity, there needs to be central monitoring and control of this large-scale home building program across all delivery entities and all local authority areas to ensure there is a level of uniformity in monitoring metrics across the board in terms of value-for-money, delivery outcomes, good design, timelines, quality products, etc.

A development corporation or any other type of delivery organisation will monitor their development work and pass on collected data to a central overarching body such as a dedicated unit within the Ministry of Housing, Communities and Local Government (MHCLG). This data is used to decide what is and is not working and can be continually assessed to enable strategy updating over the life of the programme.

To achieve this, when development corporations are established, a standardised set-up template encompassing all corporate aspects should be used to streamline the establishment of the many required development corporations and other delivery entities, ensuring synergy, avoiding disruptions, and expediting delivery. Additionally, a best practice residential development delivery template should be used, covering investment, procurement, design and construct stage gates, complete with a Project Management Office (PMO) setup for every delivery entity.