Big builders going to the wall

My son is in the building trade so I am aware of certain issues. He finishes off the inside of newly built houses and because of having to cope with smaller spaces and having to cut and trim materials to fit more difficult spaces in a smaller house the labouring cost can be equal or more than for a larger house.
Most labourers are wrongfully classed as self employed under the Construction Industry Scheme and are not employed by the contractors. This results in no contract or benefits for over 1 million workers in the building trade,

Flooding will show up in searches Oops.

Sorry that was to JJ,

That’s right. A developer can also pay money to the local authority for the affordable housing to be built elsewhere. The s106 Agreement would show this and deal with timing of provision of the infrastructure said to be missing. I negotiated lots of these Agreements (and variations of them) during my career.

rosie1959

Our small market town is in the process of building hundreds of new homes what once was fields where I used to walk my dog is now to be covered with rows of new builds.
No new infrastructure so I hope they don't need doctors or schools

So is ours , they have ripped out all of the hedges and trees, the site is now flooded.
This will be masked by a brand spanking new build which will dazzle first time buyers, along with the incentives to buy and it will be later that the problems will start.
Let’s hope the prospective purchasers will drive by and avoid the developments.

Local authorities are on the hook from central government to provide a certain amount of housing, as a part of their local plans. Often if a developer can prove an approved development isn’t viable, the LA can be minded to vary conditions and or Section 106 triggers, so originally approved affordable housing and other agreements are rescinded. If the LA don’t agree, they could get no, or less housing and not fulfil their local plan commitments.

Go online and look at the planning permission and the Section 106 Agreement. That may give you some answers.

Last year, they finishing building two hundred houses on land at the bottom of our estate where it abuts a nature reserve. We, and many others, followed the planning stages closely and there were grandiose statements from the council that they would only give permission if the builders put plans in place for a certain percentage of affordable housing, public transport links and cycle paths. Fast forward to the present and there is no extension to the bus route, no cycle paths and certainly no affordable or social housing. Like the rest of the estate, they are all detached, the smallest are three bedrooms - most are four and five - and looking at the prices, barely affordable to singles or young couples just starting out. They are all sold - most off plan, so the builders are very far from going to the wall on this one. And the council? They appear to have just waved it through.

midgey

I know I’m thick but is a low rise home otherwise known as a bungalow?

Except in Australia or New Zealand where they are called houses.

Calling someone's lovely bungalow a bungalow, as I did, is quite insulting in New Zealand. 😲

I know I’m thick but is a low rise home otherwise known as a bungalow?

Yes- I don’t quite see the connection between the Ukraine and builders. They are blaming the cost of materials and the high wages for builders. Certainly plumbers, electricians etc get very big wages here but ,personally,I think they deserve it more than politicians, footballers etc.

I wasn't aware of this, nanna8 but just checked and yes, they seem to be collapsing alarmingly in Australia. Blaming the effects of Covid and the Russian invasion of Ukraine, apparently but I'm sure that can't be the whole truth. It sounds like a get-out clause.

Some very large builders nearly collapsed in the recession of 2008, the majority have recovered. What’s been hitting them in the last couple of years is the availability and cost of materials. Looking at the share prices and results, most are doing ok.

When the bottom fell out of the house building market in, I think the 90’s the knock on effects were massive.
Not only the major and smaller construction companies suffered - flooring, lighting, garden landscaping, furniture and soft furnishing manufacturers/sellers failed, support departments within the industry were” let go “ - internal audit for instance and of course office and sales staff . Tradesmen were also laid off and while you might argue that a plumber or chippy can set up on his own, it’s not as easy as that.
Somehow the developers are usually the last to get their fingers burned though!

JaneJudge

I think you only think they are 4 beds as they don’t seem to advertise the smaller homes as much, maybe because there is more demand? and some will be put aside for shared ownership and association/affordable housing (which really isn’t that much cheaper but of course it’s secure)

Yes, they don't get planning permission for new estates without including some affordable/social housing.

It was interesting to see that a new estate not far from here has included low rise housing for less able people.

I think you only think they are 4 beds as they don’t seem to advertise the smaller homes as much, maybe because there is more demand? and some will be put aside for shared ownership and association/affordable housing (which really isn’t that much cheaper but of course it’s secure)

gangy5

Looking through other posts I have seen that you are in Australia. Big builders here in GB seem to be making good profits. I would be happy to see some fail here. The majority doing the hard work of labouring are employed unfairly with no benefits at all. Gone are the days when builders employed their own staff. The work is now taken on by contractors who supply the labour.
For this reason I would like to see some companies fail here.

This has been the case for decades. If you want to see builders fail then you want to see contractors and subcontractors fail too. Many hard working people out of work. There are good reasons why bigger builders don’t employ their own workforce, but agree a price with a contractor who may sub out parts of the job. Judging by your JR thread, you obviously have a grievance.

Why do you say they are a lot less profitable? They are smaller and take up less land, Land is the largest single component of build cost. Much of my career was spent working for national house builders so I do know something about this. I think you are getting confused with affordable housing Gangy - something entirely different,

Builders don't like building starter homes as they are obviously a lot less profitable. When they submit plans for permission they are required, with big estates, to build a certain percentage of starter homes. Then part way through the build they return to councils saying that they can't afford to build the agreed number of small houses and are often given leave to reduce this number.

Around here all too many of the houses are 4 bedroomed detahed when what is needed is 2 and 3 bedroomed starter homes.

rosie1959

Our small market town is in the process of building hundreds of new homes what once was fields where I used to walk my dog is now to be covered with rows of new builds.
No new infrastructure so I hope they don't need doctors or schools

Same here, Rosie, but people have to live somewhere. I don't know what the answer is. I don't like seeing my lovely home town growing in all directions, and being smothered with new-build boxes, (and I agree about the infrastructure problems) but where are young people going to find homes if we don't build more?

Our small market town is in the process of building hundreds of new homes what once was fields where I used to walk my dog is now to be covered with rows of new builds.
No new infrastructure so I hope they don't need doctors or schools

Sorry nanna8 it was a serious subject. Forgive us.

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