Why we need another paradigm shift in housing

In the UK, of course, we have a peculiarly nuanced view of the societal interactions between the need for shelter, the expectation of homes as personal ‘castles’ and, latterly, the bastion of personal financial security.

The political ambition for mass homeownership fed off this national psyche, a strong policy line to place before an electorate ready to believe that this was an achievable proposition.

My post-university career has, sadly, coincided with a 40-year failure in housing delivery to match demographic and economic trends that include population growth, ageing and affordability. It also maps a failure in the proposition that cross-subsidy can generate the truly affordable homes our country needs.

As well as the pursuit of the cross-subsidy model, we have also seen the catastrophe of the Right to Buy, which rapidly depleted the best of the stock available for those unable to access private markets, further hollowing out supply.

The notion that we can sustain the delivery of large numbers of truly affordable homes through what is basically a tax on private sector development has now been shown to be only part of the solution.

It is time to review this; we need the next great paradigm shift for delivering affordable housing.

Subsidised housing needs subsidy. I would argue that a significant and sustained programme of grant-funded, additional, affordable housing and a resurgence of government-backed council housebuilding and new towns must be part of any future plans.

A long-term plan for delivery, and preferably one that is released from electoral cycles, also requires capacity. As Mark Farmer, chief executive of Cast Consultancy, pointed out in 2016 in his challenge to the industry to “modernise or die”, the workforce was declining, even before Brexit.

Innovation will be needed once again in the pursuit of scaling up.

Mark and I wrote our report Build Homes, Build Jobs, Build Innovation to highlight the potential of modular and modern methods of construction (MMC) to add to the traditional constructor sector.

The current downturn has led to some pioneering manufacturers, and numerous traditional contractors, failing in the face of a hugely fragmented and cyclical market. However, the potential benefits of off-site manufacturing must not be ignored. We at HTA Design continue to design beautiful modular and MMC projects with clients, delivering houses and apartments successfully throughout the UK.

The credentials of affordable housing as infrastructure and modular/MMC delivery should be seen as an essential part of a green industrial strategy. The potential gains we identified are huge: 50,000 jobs in areas that need them and 75,000 additional homes a year, producing low-carbon living solutions.

Our report also references the 2020 work of the Levelling Up, Housing and Communities Committee, which Clive Betts MP chairs: Building More Social Housing. This concluded “there is compelling evidence that England needs at least 90,000 net additional social rent homes a year and it is time for the government to invest. The sector estimates that £10bn in extra grant funding will be needed.”

To do this, we also need a national plan for delivery that pushes through barriers, one that is built around greater collaboration and co-operation. The Inside Housing Build Social campaign is a welcome spotlight, perfectly timed as we head into an election next year.

I hope the politicians are watching.

Mike De’Ath, partner, HTA Design